Tiger followersApologies for late update but alas there is much...

Tiger followers

Apologies for late update but alas there is much to do.

I attended the discussion with Victor Kasongo this afternoon and can give the following update and my opinion on the matter of things.

Also visited the Tiger stand and some very impressive core samples on display including two with huge chunks of native copper. If this was CDU...well the sp would be $10

1/ It was absolutely chockers in the room. not even standing room and no doubt the most eagerly awaited talk of the talk fest.

2/ The rumour that a major announcement would be made was probably never going to be. Should have seen it myself - Victor Kosongo (the brains and the mover) is VICE minister. Any major announcement is the privilage of his boss, the MINISTER.

3/ He comes across as a erudite chap and a touch Bolshie.

4/ He repeatedly, openly, and unequivically recognised the importance of foreign investment and mining firms as critical to DRC future. Commericial relationships with mining companies need to be fostered and encouraged.

5/ He stated a thorough and complete review of all contracts was absolutely neccessary as you cannot have new comers to the DRC operating under set of rules (new mining code based on the Australian Mining code) and a bunch of others operating wholy different set of rules. This point was aknowledged by those I talked to later as entirely correct and necessary despite all the kerfuffle caused.

6/ They are trying to eliminate the "speculators" ie those who siphoned leases (under dubious circumstances) with no intent to develope (rather to withold, and onsell for profit.)

7/ The govt will in the next two months issue letters to all lease holders outlining the contract 'deficiencies' and invite them to an arbitrating panel to resolve the issue. Deficiencies can range from minor issues (eg force majeur clauses being to wide) to major issues regarding the undervluation of state assets passed to mining houses.

8/ The Panel it appears will be made up of proffessional consultants such as Ernst Young, NGOs (Carter Institute) etc and the framework will be around the mining code (implemented by the world bank which is based on the Aust mining code). This is the crux. If the panel is bunch of govt flunkies then one can amagine what would going on under the table. I am fairly confident however this process will actually be above board.

9/ There was fairly strong focus on the concept of arrangements that are fair, equal between parties, and that will support the greater growth of the DRC infrastructure and people.

10/ The letters will be issued in the next 4-6 weeks. I guesse the negotiation with the panel will take a another couple of months.

11/ He specifically addressed the rumours of the Chinese investment in DRC vis-a-vis the mining leases was a defacto take over of established leases etc etc. he said is was an entirely commercial (and open) transaction. Full stop!

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My thoughts:

a/ it is noted by more than one player at the conference that it was much the same of the leaked report. This same report has Tiger rated as category 2 with some relatively minor tweaking required. In short as Tiger has repeatedly stated, the lease is safe. I think it fair in light of all things that contrary to the idiots like Nowhere man - the LICENSE IS SAFE !

b/ the thieves of the DRC (eg CAMEC) are in for a wake up call, they will be required to to step and operate on the same basis as the legit players.

c/ Those who have taken over assets (and by this I mean not unexplored leases such as Tigers, but physical above ground and developed assets) of the parastatal Geccamines will probably have a bit of horse trading to do. Katanga/Nikanor I sense may be in this basket.

d/ Those firms specifically showing extrordinairy IRR based on benchmarking (done by I think Washington state university) will be also be doing some negotiating with the govt. Extrordinairy IRR being indicative of too little payment for the asset in the first place. Dikulushi mine come to mind here.

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In short little ole tiger is well under the radar of the things Victor Kasongo is talking about.

chees