AGY - Argosy Minerals
- Thread starter sydneysider
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Suspension was asked for by company. Obviously they need more time to finalise the announcement. I have an uneasy feeling about the Burundi entitlement. Hope I'm wrong.
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The announcement has been posted and does not look good. It appears there is a certain group within the government that is hindering the exploration progress and AGY are looking to prosecute the government against the mining convention. Confused as a previous report recommended the exploration continue but a certain minister produced anonther internal report against the exploration.
Market to reopen this morning.
Although the inital report mentions any litigation may be cost the government more than the value of the mine itself.
I don't believe AGY would be pursuing this if they didn't think they had a solid case. It will cost money in litigation. If they didn't think they had a strong case, they would not bother, they would just have to move on. Burundi is making a big mistake here, they are ruining their reputation with the mining community, and this case will delay any development of Musongati for years. It would prevent them for making a deal with any other company for years.
In the meantime, our sp will fall like a rock. I plan to hang on, as I think AGY is in the right here. I would not blame anyone for selling though, this may take a while. Good luck everyone. Some very savvy investors might be grabbing up shares when it hits bottom.
In the meantime, our sp will fall like a rock. I plan to hang on, as I think AGY is in the right here. I would not blame anyone for selling though, this may take a while. Good luck everyone. Some very savvy investors might be grabbing up shares when it hits bottom.
I think what the government doing is trying to get a higher bid from other companies. obviously they know that they r sitting on a "gold mine", eyed by many interested investors, and due to the size of AGY, they are not capable of developing the mine themselves. in this case Burundi government will prefer a much larger player who can provide alot more to them.
and i dont have much confidence in AGY's management n negotiation team, negotiating with small government like that u gotta provide more than pens n papers if u know wat i mean
:.I think what the government doing is trying to get a higher bid from other companies. obviously they know that they r sitting on a "gold mine", eyed by many interested investors, and due to the size of AGY, they are not capable of developing the mine themselves. in this case Burundi government will prefer a much larger player who can provide alot more to them.
and i dont have much confidence in AGY's management n negotiation team, negotiating with small government like that u gotta provide more than pens n papers if u know wat i mean
Obviously that is what they are trying to do, but they can't break international law, and they are only delaying the development of this deposit at a high risk. They are apparently not very sophisticated, and maybe about to learn a lesson. This minister of energy and mining sounds like a crook, if you read the report. No big mining company will touch this if this is in protracted litigation.
FINANCE: Bias Seen in Int'l Dispute Arbiters
By Emad Mekay
WASHINGTON, Jun 19 (IPS) - A little known entity closely affiliated with the World Bank that mediates disputes between sovereign nations and foreign investors appears to be skewed toward corporations in Northern countries, according to an IPS review of pending cases and other independent analyses of the tribunals.
http://www.ipsnews.net/news.asp?idnews=38229
it seems from this report that the companies have solid rights to their investments. Burundi is dependent on world bank as are most countries especially in africa
By Emad Mekay
WASHINGTON, Jun 19 (IPS) - A little known entity closely affiliated with the World Bank that mediates disputes between sovereign nations and foreign investors appears to be skewed toward corporations in Northern countries, according to an IPS review of pending cases and other independent analyses of the tribunals.
http://www.ipsnews.net/news.asp?idnews=38229
it seems from this report that the companies have solid rights to their investments. Burundi is dependent on world bank as are most countries especially in africa
I guess it all depends on timing, does anyone have any idea how long this could play out for? All i know, is i be bleeding right now. Still can't work out why you would buy this today. I think there is a lot more left to drop.
Usually cases like this will take years to resolve, its a slow process, and this wont do the SP any good. I dont hold any AGY, and i dont plan to hold anymore since their last negotiation failed, seems to me that the government doesnt wanna give the license to AGY at all. its like if someone doesnt give u the access to their backyard, there's pretty much nothing u can do about it, especially when this so called democracy will probably turn into a dictatorship like its neighbours.
Its hard to imagine why a poor country would want to postpone investment for years. This is probably their negotiation strategy. The last thing they would want is world bank imposed fines. Where else do they go except mining investors & world bank. Agy is probably holding back on paying bribes because they feel it is their right to get the mine on previous rights. T.I.S this is africa to quote a recent movie.
Thats why I said the company's management isnt up to the standard. its important to be flexible, because they are operating in a country where bribes r normal, they js have to adapt to that. I mean even our government r paying bribes to the Iraqis to buy our wheat! I have the impression that the Burundi government prob now have a few offers on their table, and its most likely going to the highest bidder in kickbacks. afterall World Bank's money goes to the country, bribes goes to their pockets.
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far out, i just flicked onto comsec after an exam
AGY taken a huge huge hit. i was on this one from 35 something cents up to $1 and then out. the political risk was to much for me.
seems a lot of burnt fingers out there.
ive got no idea about AGY chances of recovering the deposit. it all seems a bit confusing to me.
AGY taken a huge huge hit. i was on this one from 35 something cents up to $1 and then out. the political risk was to much for me.
seems a lot of burnt fingers out there.
ive got no idea about AGY chances of recovering the deposit. it all seems a bit confusing to me.
It may not be all doom and gloom for AGY. As per AGY's announcement, according to the December 2005 Burundi government Inter-Ministerial Commission's report
"It would be ill advised for the State to break the Convention" which "could expose the State to the risk of paying damages in immense sums that could exceed the value of the mine itself", plus of course the legal costs to be awarded against them.
The results may now be played out in the international courts. Could take some time to resolve, although AGY looks to have a strong case and could receive massive compensation. regards YN
"It would be ill advised for the State to break the Convention" which "could expose the State to the risk of paying damages in immense sums that could exceed the value of the mine itself", plus of course the legal costs to be awarded against them.
The results may now be played out in the international courts. Could take some time to resolve, although AGY looks to have a strong case and could receive massive compensation. regards YN
Yes the company will probably win the case, bt legal cases like this is always long and costly, they will probably be compensated. bt who can guarantee that the current government is still in power when the case is settled? i think the punters r banking on the approval of development on the project, and now it's been seriously delayed, probably for years. So i wont be surprised to see the SP fall back to below 10c range. so becareful boys, my fingers r crossed for u that they'll get it resolved quickly n successfully! :hammer:
This was a card that AGY probably hoped they wouldn't have to play.
You would hope with this leverage those wanting to line their own pockets within the Burundi government will see the light of day now.
Could be some behind the scenes actions after AGY served notice on the Arb case today to the Burundi govt. Just a guess. That is what some are speculating anyway.
If AGY wins its case, one would hope the current government is no longer in power at that time. If so, whoever is in power then will have to toe the line or face the consequences from the international court.
