EXR Trading 2021, page-2528

I don't think I could ever agree with anyone who said any country on earth had zero sovereign risk. I was listening to the Australian Bolshevik Collective this morning and they were talking about the EU basically nationalising the Astra Zeneca factory. Development in Australia is often swamped by 'Green Lawfare' and green tape, and that's before you start talking about activists targeting company boards - or even left aligned unions using the vast resources of Super funds they control to influence policy and direction of public companies. There's no such thing as zero sovereign risk.

Having said that I consider the sovereign risk in dealing with Asian jurisdictions to be significantly better than most African countries. China has significant commercial interests in Australia and Mongolia has significant interest in developing in massive resources for the benefit of their economy (and air quality). In this case the interests of Mongolia and EXR are very closely aligned. Success of EXR will benefit all parties enormously in multiple ways.

African nations on the other hand have long histories of economic self-harm with ridiculous decisions being made for political reasons which destroy economies and lives. Personal and tribal self interest at the expense of pretty much everything else have destroyed vibrant, resource rich countries time and time again.

I wouldn't say I'd never invest in an African venture, but I never have yet, and wouldn't do so unless I'd completed significant due diligence (which means asking people located in Africa their thoughts as a minimum).