I don't know about the threat of nationalisation but I'd make a guess at the worst , when gold hits the jackpot next year, that Vietnam may exert a little pressure: Russia increased their share of Big Oil's Siberian oil & gas, Mongolia took 34% of Oyu Tolgoi copper gold mine. But OYM have got to do the hard yards first ( like Robert Friedland did in Mongolia for years & years) before Old Communist habits re emerge.)Asians are not like Chavez with the Crystallex gold grab.
On a more cheerful note: one of the guest speakers this morning on CNBC/B berg/ Sky was commenting on the effect of Krudds Law (40% tax) on Ozzie gold mining companies. He said that the new law meant that Aussie gold miners would have a tremendous advantage if they operated in Africa or Asia. He specifically mentioned a company in Thailand ("K") & that others would be similarly favourably affected. After all, OYM is just about the only Oz gold company operating in large tracts of Vietnam & Borneo- with Zedex & Briex now history.
I do think a re rating is due if management is up to snuff. Moriarty & others gave them a great recommendation in the past. Well- they all say that don't they. Doesn't OYM have two brothers at the helm? I'll hold mine a while yet as I don't know if it will be a slow or fast take off. Held a couple of years. Don't know if finances solid.
OYM Price at posting:
37.0¢ Sentiment: Hold Disclosure: Held
