I agree that there is a definite level of sovereign risk in Angola; primarily due to potential corruption or the risk of warfare starting again.
For me however, these are lower than a lot of countries in Africa - Angola are rebuilding, are now members of OPEC and looking to become a decent power in Africa and the world. They are building infrastructure and wooing investment - including $7B from China (see https://www.cia.gov/library/publications/the-world-factbook/geos/ao.html).
DRoC however does not have the same level of prospects within the country (see https://www.cia.gov/library/publications/the-world-factbook/geos/cg.html).
On the resource level, again they are not particularly equivalent. The TGS resource itself is arguably much better from a minerals standpoint (although the full extent of the resource at CdB is unknown), but you couldn't get much further from a seaboard in the whole of Africa (lookup Kipoi, Congo in GoogleMaps). It is however right on a rail line - ironically, it the rail line will be along the Benguela railway that exits at Lobito, Angola - which from memory is the port that would likely be used for the CdB resource (http://en.wikipedia.org/wiki/Benguela_railway). This would mean that TGS would have the Sovereign risk of both DRoC and Angola.
The CdB resource is close to transport, so the cost of getting it out of the ground and onto a ship to China is likely to be much cheaper and simpler to manage.
All the best.
CVI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
