I thought a thread on the security situation in DRC and it's potential to impact AVZ's plans - and shareholders would be instructive for new investors and even old ones like rainbow.
The security situation in the North is beset by constant Islamic Extremist attacks like this one this week.
https://news.un.org/en/story/2021/01/1081562And AVZ's supply lines can be potentially cut off in local attacks in the South like this one from Mai Mai Guerillas late last year
https://www.africanews.com/2020/09/26/drc-19-dead-in-lubumbashi-firefight-attackers-repelled//The national political situation is also fraught with danger - and AVZ's supply lines are right in the firing line as former President Kabila has retreated there to his stronghold as he plans his next move against the current regime. If the Gov moves on him there will be substantial fighting in the region around the Manono deposit.
https://www.theafricareport.com/57886/drc-joseph-kabilas-plan-of-attack-against-felix-tshisekedi/What is the potential for AVZ being shut down through the poor security situation and political and tribal and political vioilence? How does the company plan to hedge against this eventuality?
See this gold miner shutting down in 2017 due to poor security situation for example. (because of the Mai Mai attacks - similar to the one posted above in Lubumbashi - on AVZ's supply route).
https://www.business-humanrights.org/en/latest-news/drc-for-security-reasons-banro-suspends-most-of-its-operations-following-recurrent-attacks-by-armed-rebels/And their stock chart during the year their mines were effected by attacks
It's important to consider all the risks when investing and not just listen to the rampers.
AVZ have a great deposit - but the security situation is a MAJOR factor- cutting supply lines for six months could see the company fail to meet loan obligations for example.
Definite food for thought when investing for anything but short term trades in DRC based companies.
(20min delay)