The Africa discount which you mention, Ned, is well warranted. Having spent several years in Africa, particularly in Zimbabwe, Zambia and Malawi, I have become almost totally Africa-risk averse.
Not only are many of the African governments unpredictable, I fear that if the POG does go through the roof at some stage, many of them won't be able to resist nationalising the gold mines to get their hands on all that valuable gold (makes a nice retirement nest-egg for the less scrupulous!).
And let's not forget that even the Yanks and the Brits have confiscated their citizens' gold in the past, so it would be no surprise at all if that becomes a trend in Africa.
That's why I'm sticking to Oz producers, and solid companies like SLR.
Incidentally, re your thoughts on WGR, I don't hold shares in that company because I'm trying to stick with miners with cash flow, but I do hold shares in MLX, who have a 25% stake in WGR. I wouldn't be at all surprised if MLX take over WGR at some stage, and quite possibly ADN as well (ADN and WGR have adjoining projects at Rover, and will probably JV them).
Cheers, Mike
SLR Price at posting:
$1.67 Sentiment: Buy Disclosure: Held
