i have always been cautious on DRC, the poor governance, and ruined infrastructure, and war lords etc.
Now that didnt stop AVZ from rising to great highs though.
But rising to great highs, can just mean it attracts a herd of risk takers to the registry.
What is the truth of it? Baseless fear selling ? or something only hindsight will reveal? Although any number of real risks are in plain sight, weather they activate are another question.
Is there a fatal flaw that is now seeing the herd disperse? Could any of the major risks be coming home to roost? eg, government repatriations of major assets? As south africa did many years ago ? Or the poor infrastructure going to make this lame.?
Perhaps none of the above. Perhaps they manage to navigate their way to a world class resource and sell it off to the Chinese?
The market attracted risk takers to the registry in its climatic rise, but how many of them have the stomach to hold this in a downturn?
So what is the true price value for a great deposit, that may or may not founder on a fatal risk?
Great deposits, dont always get developed.
NKP sat on 60m oz of platinum for 10 years after taking it from Anglo Plantinum, only to come to many years of anguish.
Interested as i Hold BMZ, who is also in the DRC.
So i am neutral in my outlook, to what path forward all these DRC stocks have to jump through.
If two stocks in the DRC - and one has 10 X the other in resources, yet neither can be developed, are they both worthless ? If that line of thinking is prevailing, then maybe the market simply doesnt want to pay over 100m mc, or whatever threshold for either stock.
VEC access to decent gold resource/ has been stranded under 30m mc.? DRC fear ?
AVZ Price at posting:
11.5¢ Sentiment: None Disclosure: Not Held
