Maybe Problem with Gilded Rose Sale, page-27

True - there are very few things you can rely on in the minerals exploration industry, you can't guarantee success such as finding an orebody, can't guarantee good management (although its often the best chance of success), drilling a hole or getting good results, can't control metal prices, exchange rates or government intervention/licencing/permits etc.

But in the last 5+ years I have found one thing that is entirely predictable and can be relied upon in this industry, is that Chinese companies won't respect or honour written agreements, or previously negotiated outcomes or deals. Anyone who ignores this well known trend is an idiot.

So yes - the failed sale of Gilded Rose isn't a "deal breaker", in that many people would not be surprised that this happens, and probably isn't a reason to sell all your holding in AMG, there are other reasons to hold AMG, but it would have been very foolish if management were relying on funds for the sale of Gilded Rose to fund other activities by the company.

https://hotcopper.com.au/threads/an...4966195/page-13?post_id=40502723#.XfbKaegzbIU

When it was announced there were quite a few sceptical people about what the deal was and a few others who were counting their chickens before they hatched, and trying to work out how many drill holes at Burra the $2.5M would get. We now have the predictable answer - the initial payment is all that AMG saw, and most likely, will ever see.