Saturday, 9 November 2013

Pathfinder Minerals ( Again ) 09/11/13

London — More than 400 investment projects for Mozambique have been approved so far this year and interest has remained strong. Nuno Maposse, spokesperson for the government's Investment Promotion Centre (CPI) told a major conference in London on Tuesday.
The conference is focussing on investing in Mozambique, and, according to the conference director, Harry Chapman, 150 delegates have registered for the two day meeting which is organised by the company Resourceful Events.
Chapman explained that among the attendees are representatives of institutional investors, private investors, family offices and international financial institutions. There are also delegates from Portuguese banks including Banco Espirito Santo (BES) and Caixa Geral de Depositos (CGD). CGD is the main shareholder in Mozambique's second largest commercial bank. The BCI (Commercial and Investment Bank), while BES holds shares in one of the country's smaller banks, MozaBanco.
Chapman said that, after holding successful investor conferences on Mongolia and Myanmar, his company has now turned to Mozambique given its “good economic outlook”. After the success of this conference, the company intends to make it an annual event.
Much of the focus is on building Mozambique's infrastructure and the need for improved transport links. A national director in the Transport Ministry, Ambrosio Sitoe, outlined the rapid development of the country's railway infrastructure. He stressed the need to keep up with the demand for capacity to take coal from central province of Tete to the country's ports for export.
In particular, he noted that railway lines are being developed to the port of Nacala-a-Velha, in the northern province of Nampula, and that there is to be a completely new port at Macuse in Zambezia province, which will have a rail link with the Moatize coal basin within four and a half years.
Several delegates spoke of a positive investment environment in Mozambique. Ben James of Baobab Resources gave a talk on his company's experience in Tete where it is planning a pig iron project. He praised the Minister of Mineral Resources, Esperanca Bias, and said that she keeps a very close eye on developments in the sector.
James stressed that Baobab has a vision to use Mozambique's electricity, thermal coal and iron ore to add value though the production of pig iron and possibly steel.
Whilst some delegates spoke of the problems caused by the international economic downturn, others stressed the positive outlook for the production of liquefied natural gas (LNG) in Mozambique partly due to economic growth in the rest of the African continent.
On the sidelines of the conference, delegates discussed the political instability caused by the recent clashes between Renamo gunmen and the defence and security forces in the centre of Mozambique.
A representative of a large investment fund explained to AIM that his clients are used to being involved in projects in countries such as Russia and would not be put off opportunities in Mozambique. He said that the current political instability in Mozambique is considered to be a short term phenomenon and would not scare away investors who look at the longer term.

 Legal cases such as this can be a real pocket buster , or money spinner .
Shareholders having bought in at much higher prices will obviously be most down-heartened and whom can blame them . Sitting on a loss , is a bind on any investor`s reputation .
  Pathfinder Minerals itself is sitting on a mine of huge potential . True they have little or no cash left in the bank . This will have to be resolved with a farm in of some proport .Whom will it be , perhaps BHP or the Mozambique Government itself  ( via some other body / company ). Here there is a lot of money to be made  and the acreage here is without doubt highly lucrative over the longer term. So , as usual a lot of patience is required .

  This is quite clearly a case where one major investor , has been in general , a disappointment . The greed of the Dynamic Duo , Veloso / Cavaco , has led to this point in the company`s history . Their greed for a larger slice of the cake cannot be satiated . Mr Trew is right , at some point , one must share one`s burden of responsibility to achieve results . that point is surely , within our grasp.
 Of note the dynamic Duo , still own 20 % of the company . Nick owns 10% .It is in everyone`s interest to find a path forward , nobody lives forever . Not even General`s . Now the General has a victorious battle won to proclaim , is the ideal moment , to end the war .
  Also , our not very mysterious seller has almost run out of ammunition . Someone will take this huge and cheap opportunity very very soon .

  Good luck all on an equitable resolution .

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