Glad you slipped a reference to OXS in there, you'll have the BB harpies on your back in a jiffy for o/t!
You seem to have had a very interesting time in your investments, and it's true there must be untold resources yet to be developed because they are situated in difficult geopolitical areas. There were rumours that the US went into Afghanistan partly because there may be tremendous mineral opportunities in the mountains there. As for any eventual payout here, I'd personally prefer any cash to be distributed in full and wind down the company - it may sound very harsh, but I'm not sure I'd trust the judgement of a BoD who saw fit to attempt to do business in such an obviously corrupt country such as Uzbekistan.
Jeremiah, yes it is me from ADVFN. I had an account for many years here but evidently never used it: I forgot the password. I have been invested in Iran for the last 6 years or so, but the company got a cash offer from an Omani businessman with a PhD from HerriotWatt University. Not a great story: the mine (a zinc mine) had $19 Billion worth of economically and technically recoverable metal (Lead, Zinc, Copper, Silver all in both Oxides and Sulphides) and had passed its BFS but was only valued at, get this, $1m by Grant Thornton. The capex requirement was $1.8 bn and the mine would have produced 400,000 tonnes of zinc p.a. (5% of the world's demand) for the next 40 years. The biggest problem were the Australian directors' lack of understanding of Iran. I was hoping for the overburden to be removed by bunker busting bombs, but it didn't happen. Oh yes, the Ahmadinjad Govt. impaired the value by revoking the agreements (4 months after Khandiza was expropriated) right when Zinc peaked. The Iranians got the mine right at the peak without having to pay compensation (they are cannier than the Uzbeks). I came out with a reasonable profit (nobody else was interested in Iran at the time - and you can understand why) and the company, quite by chance bought a phosphate project (offshore Namibia) which the Omani man will clean up on because it unexpectedly turned out to be very good and saved me from losing money. He paid $33m cash for the whole company (including the Iranian zinc mine) and will now own a company generating revenues of $600m p.a. in a few years' time (with relatively low capex and opex, too) and that is without bothering to develop the Iranian zinc mine. The phosphate project passed the DFS so was completely de-risked. Anyway fingers crossed for Oxus to come good. Looking forward to having a $1.2bn war chest here to acquire new projects. I expect South Africa is Mr Shead's favoured location, but I can't say I like the fiscal regime there. Anyway it should be interesting to see where we end up after the arbitration case.
Hi jaf, hope you're well and recuperating previous losses. I'm quietly confident that BMR will return my funds lost elsewhere. I also think it unlikely that there won't be a good profit from these levels in OXS, whether it be a 3 bagger or 30 bagger. All the best.
You've got a good 8 excluded there. To them I'd like to add some other candidates to avoid : Syria, Libya, Argentina, Bolivia, Venezuela, N.Korea. Not forgetting Zimbabwe and Iran. There, we now have 16 countries to avoid. Any further suggestions to help our Board plan for the future?
well when you consider the state of mining stocks these days.
Just imagine the acqusitions you could make with a $400m to $1.2BN war chest!!!!
Interesting thought isn't it, when you consider where the smart money thinks the mining sector is going next year.... I believe that the Dec 2015 Futures Contract prices where $1200 per oz for paper, $3k for physical .... which says it all to me ...
I agree with you about wanting to avoid inefficient use of capital and keep HQ costs down to a reasonable amount. Whatever the future, Mr Shead is going to have to sell the proposition hard to the long suffering shareholders and that will almost definately require a special dividend to sweeten the shareholders to take on new exploration risk. As things stand at the moment the company might be cash rich at the low point of the price of bullion and of exploration assets. A good time to go hunting.
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