Sovereign Risk

This is a topic that should interest all forum members. Just to be clear, this is the risk that changing government regulation by whim or political manouvering creates for a stock. It typically means downside.

Sovereign risk is a significant issue in Greenland (it's funny though that EPM presentations say that Greenland is a "mining friendly jurisdiction" lol). The lobbying of NGOs, the climate agenda, change in Greenland society and so on is creating a situation where mining projects will be critically assessed by financiers and the flow of capital might well be constrained.

How will this bode for EPM ?

Regardless of whether you think EPMs tenements are generally "risk free" because it has had mining there for a while, there is risk that the necessary finance to make this mine happen will not be there because of the wider sovereign risk.

Did you see in the EPM presentations that the company has talked about 'joint venture' partners potentially getting involved in the project. Can anyone explain what this means. My take is that they will give a big chunk of the project away to a big player to minimise their risk and get those juicy bonuses for so called 'performance'. Thus reducing our potential returns.

That is what sovereign risk means for EPM. Maybe I'm right, maybe I'm wrong but you must admit it operates as a risk in the background that I'm not sure many people are factoring in.