notes from presentation, page-55

Tobyjack, the Mozambique civil war was over 15 years ago. Renamo lost. At this stage, their forces number about 800, virtually all of them now in their mid-to-late 30's, and beyond fighting age. The movement has no money, but has been regularly making statements, always claiming that they are about to start an insurrection, and asking for people to fund them. The silence is deafening - nobody believes them.

Those same bankers of whom we both spoke will, within the next six to twelve months, be making their decisions as to where the greater risk lies: from a toothless and moribund Renamo, as a risk to SYR and their Balama deposit, or from a competitor with a vastly larger, lower-cost resource, in the case of AXE.

I can only reiterate what was said earlier, namely, that sovereign risk has usually been less important than normal business risks, and the chances are that will be the case here also. But nobody knows! We'll just have to wait and see.

Cheers, Prime