PDAC
Analyst and Chief Commentator Peter Grandich from Agoracom was invited to comment on small cap mining stocks by BNN Market Call during the PDAC 2010 Mining Conference in Toronto.
He said the market is overreacting and the share price of mining companies in Eritrea is undervalued as a consequence of negative media coverage.
This overshadows some of the progress being made by mining companies such as Sunridge Gold and Nevsun Resources in Eritrea.
Nevsun, for instance, has completed its non-brokered private placement financing and is planning to go into production in late 2010 despite all the dramatic ups and downs in recent years.
Grandich believes that the worst of the bad news is behind them and that better days lie ahead, unless further tidal waves of bad press will continue to dominate the media.
He says that the UN has adopted sanctions not against the country as a whole, but against certain politicians and the military in Eritrea. He will update his rating on Nevsun and Sunridge Gold later this month after the UN has announced its decision, whether it is going to continue, increase or remove the sanctions on Eritrea.
“If Sunridge’s projects would be somewhere else in the world it probably would be three to four times the price of today.
Its being penalized for being there, but if you are a believer like me eventually things will get better and they should be doing well in the long run,” says Grandich.
When he was asked to rate Eritrea on a risk scale against other places in the world he replied,
“You have to put it to the most riskiest when the UN has brought sanctions against them, but the good thing is the likelyhood of things getting better is high as things cannot get much worse.”
Experts believe the fact that Nevsun Resources managed to solve the question of financing will remove most of the fears that came from the UN sanctions against Eritrea.
Watch the episode on http://watch.bnn.ca/market-call/march-2010/market-call-march-9-2010/#clip274281
March 10, 2010 at 11:45 pm
THESE STATEMENTS ARE ALL FABRICATIONS BY THE U.S.. ERITREA IS FOR THE PEOPLE AND IS FOR THE BETTER OF AFRICA.
March 12, 2010 at 3:36 am
Its not unusual for greedy mining companies to rush into peoples land with the gtreedy mentality of robbing thier resources in association with irresponsible rulers.Nevsun and Sunridge Gold are among these greedy mining companies that are working around the clock to rob the resources in Eritrea in association with a terrorist regime. All they care is the profit they are going to make and thats why they are happy to work with regimes as evil as the Eritrean regime.
The Eritrean regime on its part is badly desperate for hard currencies is willing to do anything to stay alive particularly after it had the UN sanction slapped on its face for its association with terrorists and thats why its auctioning the resources of the country at throw away prices.
Look at Sudan which is 50 times larger than Eritrea is claiming 60% stake of the resources but the evil regime in Eritrea claims only 10% of the stake. These mining companies should know that they are operating in a country where thousands are tortured to death, imprisonment without the due process of the law, arbitrary killings, human rights abuse, indefinate enslavement, no free press and no functional parliament are the order of the day.
Let me shed some light to what the evil regime does.
This is a regime that killed prisoners of war and Eritreans who were alleged to be working for the former Ethiopian military regime without a day in a court house.
-It massacred disabled veterans (freedom fighters) in 1994 in a place called Mai habar in a cold blood for simply demanding a kitchen table issues.
-It initiated wars here and there for minor issues that could have been resolved in civilized and peaceful manner and as a result over 100000 people were killed and incalculable amount of properties were destroyed.
-It jailed reformers, parlamenterians, journalists and intellectuals for simply expressing thier views which is different from the junta regime.Some of them are jailed for 17 years without a day in a court or a visitation from thier families or human rights groups.No one can tell whether they are still alive or not.
-It continues to enslave the youth under the pretext of national service indefinately. Most of them have been in the trenches for 15 years with no enemy in sight.The sadest part of it though,when some members desert to neighbouring countries the parents will be imprisoned or pay about $3500 fine.
What is worse, people get kidnapped and disappeared without a trace for allegedly having different views from that of the regime.
The Canadian government and the share holders or buyers in particular shouldn’t let these Canadian companies giving life to a dying regime that terrorizes, brutalizes its own people and beyond by proping up terrorists across its borders. Thats not what Canadians stand for.
Death to the dictators,
Justice and Democracy will prevail in Eritrea,
Freedom to the people.
March 12, 2010 at 11:15 am
fithawi
u are not crying becasue Eritrea is holding 10 percent stake, ur hatred is the existance of the eritrean govt in the first place, so dont try to confuse people as a genuine Eritrean, u are not but a weyane ass kisser. we will bury in the bisha goldmines for good, prosstiition will not pay,we will make sure u never see a day in eritrea.
halay bastard
March 13, 2010 at 12:59 am
Mike,
You see, instead of calling names, it would have been better to respond to the burning issues that I raised facing our country today.Thats what people do in a civilized society.They disagree respectfully as everyone is entitled to his or her opinion.Sadly thats not the case in our country because of a bunch of traitors
(dictators) who shattered and interupt the dream that hundreds of thousands lost thier lives for. A bunch of dictators wouldn’t be able to do all these harm to our beloved nation without having a USEFUL IDIOTS like you on board.I know our nation is not short of useful idiots like you who can’t think outside the box and the dictator always relys on you to keep breathing.
Mike,
It hurts me a lot to see our resources being auctioned at a cheap price by a bunch of dictators who offers nothing but a bancrupt vision of misery and terror.Countries in our region like Sudan and Egypt haven’t made a deal with these greedy companies for that cheap.They claim 50% and 60% respectively.
The second point is about the Weyanes.The weyanes had done everything what they wanted to do 10 years ago and went back to where they came from. If you still think there is-
-no need to hold elections,
-no need for justice,
-no need to release political prisoners, journalists and reformists,
-no need for thr rule of law,
-no need for freedom of press,
-continue to enslave our youth,
-no need to stop political killings because the border is not demarcated or for fear the Weyanes might come,
YOU ARE ON THE WRONG SIDE OF HISTORY.
Death to the dictator,
Justice and Democracy will prevail,
Victory to our people,