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clock Created with Sketch. 27/02/24
11:07
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Originally posted by Alejandro1:
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Could be a plan to push BSE into desperation by the new government. They may wait until existing cash generation is well and truly exhausted before pushing us into the corner to either offer them a bribe or renegotiate more favourable fiscal terms. I hope I am wrong as I hold a sizeable position from ~$0.19, but all our financials are laid bare. It is also true that other local pressures for development and income generation along with geo-political games and BSE relational/discussions (largely hinges on effectiveness of BSE management to establish relationships) could counteract the financial sieging temptation.
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Interesting view but I really don't think it's rational to think that the government's interests are served by playing hard ball. BSE is an extremely well equipped and professional operator with a lengthy history of success in Africa. BSE is core to the government's aspiration to bring jobs and security to the region, thereby enabling the elected government to create prosperity for the people, and foster greater political support for the status quo. There's no upside to pushing BSE into a corner. They definitely want the royalties from the project, but more importantly, Rajolina wants the recognition and political validation. The timing of the next election might be very well suited to the development of Toliara, as Rajolina will have something to demonstrate to the community as a boon. If it all goes the way of the Chinese, which I deeply doubt, Rajolina would have signed the death warrant to his political career, considering how much money the World Bank has coffed up. Keep in mind Rio, EVG, and others are operating in Madagascar free from Chinese meddling, so I don't really rate the possibility.
(20min delay)