Awoonga- you made comments about sovereign risk and one has to...

Awoonga- you made comments about sovereign risk and one has to keep an open mind here as some companies have successfully set up operations in places like the Democratic republic of the congo - The DRC has some big players creating wealth here and here are a few reasons why the DRC is now de risked

? First democratically elected Government in 2007
? Joseph Kabila re-elected President in November 2011
? Stable government following recent Presidential elections
? Multilateral presence – UN, World Bank and IMF.
? Mining reviews completed in 2009.
? OHADA Legal system

I own shares in a copper company TGS who are currently mining/producing copper cathode in the DRC using HMS and will be using SX-EW technology by mid year 2014 to produce copper cathode for "KIPIO staGE 2" which will be low capital /high margin which will produce approx $25 mill cash-flow per quarter.
All this and their share-price is currently 34.5c with a valuation of 78c share They have recently announced over 1.1 million CU reserve with grades as high as 7% which blow AVB out of the water in terms of cost per pound as one of their projects is costing less that 45c /lb and produce approx. 60 t CU/annum
Here are their projects and developments

Kipoi Stage 1 – low capital, high margin 35ktpa Cu HMS Plant – IN PRODUCTION
2 Kipoi Stage 2 – 50ktpa Cu SX-EW – DFS DUE Q4 2012
3 Phased Stage 2 development – funded through Stage 1 free cash flow
4 Growth – expand Kipoi SX-EW to 100ktpa Cu through exploration success

KIPOI STAGE 2 SX-EW DFS UPDATE
1 Development proposed to commence Q4 2012
2 Acid consumption confirmed bottom 25%
3 Operating costs forecast less than $1.00/lb, start-up at $0.70/lb
4 Increased copper recovery
5 Mine life plus 9 years
6 Initial capital cost $150M

I think pound for pound this is a better investment than AVB however i have both in my portfolio
TGS have 700 million shares on issue Verses AVB at 1.3 billion on issue and so on plus they produce 3 times that of what AVB will produce Stage 1 and 2 combined


The DRC has become much more stable these days with political stability taking its course

Just keeping an open mind to the political situation and its ever changing trend- One place i wouldn't
go near is Angola or the likes of Puntland. Mogadishu, Africa

Cheers BT