i understand what sovereign risk is, i was just curious if you were (as most people do) assuming that because Burkina is in West Africa it must be risky as other countries in West Africa are.
i dont think Burkina will ever be able to shake that immage however i think (a) Burkina is less risky than most West African countries and (b) AMX is positioning itself to help mitigate the risk, for a number of reasons.
1. Burkina has been politically stable since 1987.
2. Burkina introduced a new mining act in 2003 which has seen the recent influx of juniors to the country.
3. Burkina has had 3-5 new mines open or about to open in the past couple of years which the government holds a 10% interest.
4. the country is extremely poor in terms of GDP per capita and the government needs to encourage foriegn investment to help develop infrastructure.
5. i understand that most major gold mining companies are looking to get back into WA for its gold potential.
5. AMX has a local office in Ouaga completely run by nationals who understand how the system works. the VP of exploration is a geo who has over 25 years experience dealing with companies such as resolute and WMC.
anyway thats enough ranting from me. have a look at amx's website www.ampella.com.au for further information on burkina faso. it contains a wealth of info!!
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