SOVEREIN RISK ZIMBABAWE
Invictus Energy have recovered an oil major data set from years ago showing large gas prospectivity. Stock is being powerfully promoted by Kalkine Media, Proactive Investors, Next oil Rush etc., Internet search reveals Zimbabwe is refused cash by World Bank who limit their largesse to it to technical assistance. Other items reveal contemporary killings, beatings, rape, torture by government. They also describe law changes made as " fake ". Corruption is endemic. Invictus are attempting to operate in this situation. IVZ website does not acknowledge any of this ongoing conflict. Experience of other companies in unstable countries such as Philppines and New Guinea demonstrate reality of soverein risk. Prospective investors are not being fully informed about risks and take extreme high risk with their capital entering this situation. BEWARE.
IVZ story is seductive - years ago oil major acquires data trove over prospect then abandons prospect because it shows gas prospectivity only. Years later an independent guy comes along, rifles data stash, then at nominal cost starts company, and markets it to investors.
How could such fantastic prospect, with promise of fabulous wealth for investors, be left undeveloped to be re-discovered years later.
Country and local Misheck Mutize, Post Doctoral Researcher Uni Capetown, analyses situation outlining detail of dynamics driving situation and associated Sovereign Risk for investment capital.
Zimbabwe does not have sovereign credit rating.
Domestic debt market does not exist.
10 currency changes made since year 2000.
Local currency depreciated more than 350 % in a year.
Value of savings and pensions evaporated.
Generalised loss of confidence in entire financial system follows.
Increasing economic crisis eroding post-Mugabe goodwill.
Presidents actions do not match his " open for business " rhetoric.
His visits to Davos do not result in direct foreign investment in Zimbabwe.
IMF loans default and failure to implement agreed reforms move country to pariah status.
Stock Exchange forced closure June 2020 after State Agencies try to stop operations of two largest listed companies - Econet and Old Mutual - demonstrate hostility to private sector.
Land ripped from white farmers recently with promise to pay for it cannot be paid for as country has no money.
Disrespect for law, absence of transparency, government corruption have destroyed govt legitimacy.
Significant direct foreign investment is determindly avoiding risking capital in Zimbabwe.
Australian Government " Smartraveller " website corroborates Country and local Mishecks analysis with warning :
" Level 4 : Do Not Travel - if you travel to this location you're at high risk of death, imprisonment, kidnapping or serious injury ".
Personal risk warning applies equally to investors capital Sovereign Risk in IVZ.
plus 1 of the directors was on the ISX disaster ..dyor
Above detailed write about Zimbabwe sovereign risk moderated on HC. Impossible to have rational logical discussion on this topic there. Moderations are being used by other posters to stop posters speaking. When that happens site is no more than a spammers boiler-room. Whatever happened to the vision and purpose of original site ?
CEO webcast presentation with Q & A 22nd. Will be most interested to hear what, if anything, is said about sovereign risk. Subject may be too difficult to discuss ?
Aussie companies stripped of iron ore projects in Africa
Dec 21, 2020 – 5.30pm
Perth-based Sundance Resources is seeking a multi-billion dollar payout from the Republic of Congo after being stripped of its iron ore mining licence in the central African nation where China is casting a big shadow.
Two other Australian-based companies have also had iron ore mining and exploration rights stripped by the RoC, which then awarded them to a mystery company with no history in the region.
The mystery company has been handed rights to about a billion tonnes of high grade iron ore by the RoC at a time Chinese steel mills are stuck paying high prices for Australian product.
It is understood the three Australian companies stripped of their permits will study any links between China, which wields increasing influence in the RoC, and the new permit and licence holder.
China is a dominant force in mining in the neighbouring Democratic Republic of Congo as well as a long-time supporter of the RoC.
Sundance said on Monday that the RoC had issued decrees purporting to strip its subsidiary Congo Iron of the mining permit for the Nabeba iron ore project and re-issued the permit to Sangha Mining Development Sasu.
Sangha Mining has also been awarded permits and licences for iron ore projects that were stripped from ASX-listed Equatorial Resources and privately-owned Core Mining Congo.
Equatorial Resources said it considered the sudden awarding of the Badondo (Equatorial), Nabeba (Sundance) and Avima (Core) permits to Sangha Mining a “flagrant breach of the RoC (Congo) government’s obligations under the mining code, the relevant mining conventions which exist between the permit holders and the RoC government, and international law”.
Both Sundance and Equatorial said they had no knowledge of Sangha Mining and were not aware of any previous mining activity by the group in RoC.
Sundance said it would conduct a full investigation into the actions of the Congo and into Sangha Mining before an arbitration process Sundance has kicked off by issuing a notice of dispute and notice of expropriation to the Congo.
In the notice of expropriation, Sundance has claimed damages of $US8.76 billion based on the iron ore price of $US154 a tonne on the day the notice was lodged.
Sundance chief executive Giulio Casello said the expropriation of iron ore mining permits and exploration licences by the Congo was “breathtaking in its size and audacity and in contempt of Congo’s mining laws and the government’s oft-stated claims that it upholds its own laws”.
“The Nabeba deposit is the most advanced in the region because of the work done by Sundance over many years.
“When combined with the other two projects whose licences have been expropriated, we are talking about approximately one billion tonnes of high-grade, direct-shipping iron ore within a 100 kilometre radius that have been illegally seized by the Congo government.
“Sundance will take all steps required to pursue the legal rights of the company and its subsidiaries and protect the interests of Sundance shareholders.
“We do not see how our dispute with the Congo government, as a result of its actions, can be resolved in the 54 remaining days of the negotiation period, absent an agreement by the Congo government to pay substantial damages.”
Mr Casello’s comments coincided with notice Sundance would be removed from the ASX boards from December 21 after being suspended from trading for a continuous period of two years.
Equatorial, led by former Wallaby and Resolute Mining managing director John Welborn, said it was shocked by the “unlawful and arbitrary actions” of the Congo.
“The actions of the RoC government in granting multiple mining licences to Sangha Mining are unprecedented, unlawful and unfair,” Equatorial said.
“Sangha Mining has never held any research permit or exploration permit over Badondo and, as far as Equatorial is aware, has conducted no work at Badondo nor made any investment whatsoever in the exploration or development of Badondo.
“Under the applicable RoC legislation, Sangha Mining is therefore ineligible for the grant of exploitation rights over the Badondo tenement.”
Equatorial said that through its subsidiary EEPL Holdings Mauritius, it would serve a notice of dispute and request for negotiations on the Congo under an agreement between the Congo and Mauritius for the reciprocal promotion and protection of investments.
Brad Thompson writes across business and politics from Western Australia for The Australian Financial Review. Brad is based in our Perth bureau. Connect with Brad on Twitter. Email Brad at firstname.lastname@example.org
In IVZ presentation followed by Q & A. today CEO said :
New government re-organisation, departments, and authorities devolved into more than one agency results in IVZ dealing with " cross Ministerial considerations " when attempting to get approvals.
" Key consideration is Sovereign Risk ".
" Security issues have been misunderstood and have come about because of government seizing white farmers lands without compensation ".
Zimbabwe drill site is " very safe secure ".
Zimbabweans are very peaceful and placid ".
CEO's first point acknowledges and outlines an aspect of complexity embodied in new laws.
Second point acknowledges detailed review of Zimbabwe's problematic history and current troubled status with international inter-government organisations outlined here in previous posts.
Subsequent points do not correlate with published articles about Zimbabwe and Australian government maintenance of AVOID travel warning.
IVZ acknowledges Sovereign Risk - its discussion of it and IVZ"s ability to negotiate it successfully is unconvincing.
Posters elsewhere say they are not only aware of sovereign risk with IVZ but are there because of it. They have bought IVZ knowing it is at extreme SR. They are saying they are aware of and comfortable with the extreme risk situation. This is the most bizarre basis for risking capital i have seen. At the same time as they are making those statements they have attempts to discuss issue elsewhere consistently censored. They then complain when the poster they are censoring has them moderated. Marketing and ramping are in flagrant disreputable mode elsewhere protected by moderators. ASIC / ASX have definitely got a role to play in this situation if legitimate market activity is to be minimally tainted by corrupt behaviour.