I have found following potential negatives in this company. However some of them are common to any mining company. Even with all these negatives, we have multibagger here. EV/CF is very low which is "the metric" to value any junior mining company.
1. Country Risk: Congo is always in some kind of conflict after gaining Independence from Belgium. However Katanga is much prosperous region and they have pro-mining friendly Governor for now.
2. Ban on copper concentrate exports: Congo is planning to ban on copper concentrate exports. However it is mentioned by company they are not impacted because Dikulushi Mining Convention. From my research, this should not be a problem.
3. Tax Issues: There are couple of pending tax issue pending in Congo court. I don't merit of this.
4.Low current mine life: Current Ore body will run out soon. Company has good pipeline though.
5. Potential Cost Overrun in Kapulo: Any mining company will face this issue.
MWE
mawson west ltd
