Ann: Lumwana West Project Update, page-5

I tend to agree,
All that was needed was the first paragraph, the rest is a bleeding heart sob story and telling shareholders what they already know BUT the closing sentence isn't filled with much confidence ....
"Argonaut is ready to continue a fast tracked feasibility study in the event the Lumwana West licence is reinstated."

Without the shareholders knowing the real and full story behind the licence debacle, an my opinion is unchanged that is was on the Company to maintain their licence/s in good steed and being on top of the renewals. Its Called Corporate Governance and something shareholder would at a minimum expect the directors to comply with, maybe they were too busy with the forthcoming IPO, or chasing the next acquisition to keep the projects revolving to maintain their salaries.

Instead of accepting their mistake (again IMO) they have structured a sentence that is shifting the onus to the government...
"Our circumstances has arisen at a time when the newly elected government is working hard to restore investor confidence in the Zambian mining sector"
~ Zambia will always face economic challenges, with the Kwacha depreciation and the fall in commodity prices of recent years highlights why the previous government made changes to the Mining Codes and increased taxes. With 90% of its export earnings from copper, the new government has already embarked on reversing the taxes and royalties implicated by the previous government, so "tick" they are restoring confidence.
~ I will be very interested what recourse the company will take if the decision is not overturned?
~ bottom line is though, the copper in the ground isn't going to run away, depending who the "new" licence owners are, does the government really care who gets it out of the ground?


cheers