Uru27 Mar 2018 12:13
GW in weekend meetings, couple weeks ago, presented as a basis for ongoing talks/future policy the third (industry rejected) draft of the mining charter. Some have reacted badly thinking the new govt players will continue as the old were and the industry/investment will remain in decline.
I chose to be optimistic, this is a negotiation after all and all sides have to be appeased to some degree. There are groups that considered the third drafts measures needed to be harder on the mining companies (50+1% bee etc) and that it didn't go far enough. So by ripping up and starting again not only would it send a bad message to these groups but likely lengthen any timescale for policy formulation let alone agreement.
Instead what has been proposed is targeted, evidence backed, specific problems that interested parties have in relation to the document, are to be raised and examined with the potential for redrafting to an agreeable form. Talks included chamber of mines which were persuaded by CR to withdraw the court case-they must have heard something they liked. Talks did not include AMCU as they refused to part take with GW saying fine we will carry on without you (he has since met with them as he says in the interview in the link). Talks did not include local community groups-it seems they are not as influencial as they considered after Febs court ruling-they weren't invited to talks. With redrafting of relatively limited number of clauses in the document and most importantly, certainty of policy, investor attractiveness can be substantially improved.
Fundamentally SA needs the worlds investment more than the world needs SA minerals/metals I'm hoping men as smart and experienced as CR and GW seem to be, see this and act as they have so far said they will. They cannot afford to nationalise the industry whilst compensating at true value, they won't want to break the constitution (nationalise but not pay up) and they want growth in the SA mining industry, therefore they have to attract investment so what ever ends up in the document it has to be a significant improvement in favour of mining companies as years of decline is proof of the result of any alternative, end of.
They need to get a move on, theres elections next year and CR will want his statistics to flaunt for his campaign. Sp tanking further harder and harder to stay focused on facts rather than a floating abstraction was nice to see yesterday's reprieve.
Imv logic dictates if I was willing to buy @ 0.74 & 0.95 weeks ago & I was willing to buy at almost 3 early last year and between then and now I have done more research (and found nothing too worrying), been provided with more good news, Ni price and outlook has improved, and the shares have gotten cheaper and cheaper month by month, then I should continue to buy.....and I have.
Btw at one point well >50% down, I have neither the skill, knowhow, software?, time or funds to do a diggit and keep my av so close to
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