Sovereign risk, page-8

Hi crusader.

I think its reasonable to price in some soverein risk in CLA. Our money is tied up thousands if km away under a govt we have no control over in an area with a ... " colourful " past.

I would to also propose to this group the other consideration of sovereign benifit.

Something that I don't think has had enough attention here is the cost of wages which is by the far the largest cost of any mining operation.

The Namibian dollar has been pretty stable and is currently worth about 10% of the Aussie dollar.

https://www.xe.com/currencyconverter/convert/?Amount=1&From=AUD&To=NAD

So one 10 Nambibian dollars is worth 1 Aussie dollar.

The average mining in wage in Nambibia is about 21,000 34,000 per month in NAD's depending on the source which is far higher than the average national wage of 15,ooo NAD per year meaning these guys will be lining up to work for CLA.

https://www.paylab.com/NA/salaries

https://www.newera.com.na/2015/06/01/average-incomes-namibians/



so roughly speaking you can get a minning specialist for about 3,000 Australian a month. Most Aussie minners won't get out of bed for less than 2,000 a week so your labour costs are going to be about 25% of any Australian cobolt peer.

So yes there are some minor Goepolitical risks ( all countries are stable until they are not ) but when you factor in wage price benefits and the benefit of less red tap the offshore location in my mind is a net plus rather than a net minus when trying to figure out a MC for CLA.