Sovereign risk is real in Africa (and elsewhere) but also...

Sovereign risk is real in Africa (and elsewhere) but also consider the last 18 months. Covid has put a real spanner in the works in over regulated first world jurisdictions specifically related to border closures, labour disruptions and higher costs. As a business case we can compare Perseus v Aurelia. PRU is business as usual SP near all time highs punching out dollars + maiden div with low grade ore in Africa. As opposed to risk averse Aurelia with mines only is NSW which now pays no dividend as it recently payed ludicrous sums for another NSW mine. There's an important lesson to be learnt from Covid. Over regulation can be as much a financial threat as a temporary sovereign risk. Diversification into lower tier jurisdiction doesn't have to be a dirty word. Those assets are cheaper for a reason and in some instances make far more financial sense then destroying shareholder value in the name of safety. For further comparison, Mali based Firefinch gold asset will likely list in March 2022 for around $300m post lithium de-merger with a 7.5moz resource and 200kpa plant. Compare that with the previously mentioned Aurelia who last year purchased Dargues Mine in NSW for $200m with less than 1/10th the resource and 1/4 plant capacity. That's approx $365/ resource oz vs $40 / resource oz. How much shareholder value are you willing to destroy is the question? Realistically SLR could buy that African resource with 50:50 debt + cash generate +$1,000 aud margins and join the 500kpa club within 18 months.