Agreed AJ. Initially I did not think the Soveriegn Risk issue was the cause of today's rout as the comments were made last week and the KAH SP was positive last night, obviously the market did end up reacting to the comments by the minister and this was exacerbated by shorts and stop losses.
However I do not think for one minute that Extract was oblivious to this government thinking and the fact that when Epangelo was formed in 2009 the Governmment suggested this was the strategy albeit with no detail.
Extract has Ms. Inge Zaamwani-Kamwi on the board. As a lawyer and ex Mining Commissioner and the Director of Mines in the Namibian Ministry of Mines and Energy, and as a board member of several of Namibia's premier companies, institutions and non-government organisations, she would have known what was the pulse with current government thinking.
I also do not believe that Namibia will be stupid to stymie foreign investment by policy. That said I believe a JV with Epangelo is feasible anyway, very similar to what Australian mining companies have had to do in SE Asia over the years.
EXT Price at posting:
$7.57 Sentiment: LT Buy Disclosure: Held
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