Aurelian Resources Inc: A Victim of Geo-politics!
Print This Post
| Topic: Gold Mining Companies — April 21st, 2008
The best success story in the gold exploration sector has been dealt a tough blow as the Ecuadorian government suspends mining.
According to an article carried by Bloomberg, Ecuador’s Constitutional Assembly, elected to rewrite the constitution, voted 95-to-1 in favour of the moratorium, causing Aurelian’s stock price to drop 45% in two days.
The moratorium covers mid- and large-scale mining projects and cancels up to 5,000 concessions in Ecuador, including ones in protected areas or where water sources are under threat. This move by the government puts on hold a deposit with an estimated 13.7 million ounces of gold and 22.4 million ounces of silver. Issues concerning the environment and no doubt money will need to be overcome quickly in order to get this project back on track.
The geo-political situation of any investment needs to be considered as we can see there are other cases of this sort of problem arising, for instance; Khan Resources with the Mongolians, Uranium Resources with the Navajo, Aurora Resources with the Inuit, plus Argentina, Zambia and the Congo, where the mining criteria is not clearly defined. Although we do not own any of this stock we do hold Khan and Aurora so we understand what a gut wrenching feeling this action will have caused those who have put their hard earned cash into Aurelian Resources and we sincerely hope that the situation is resolved soon.
To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address.
|
|
Related Articles
Agnico-Eagle on the acquisition trail
CAT.V: Up 31.25% in a day!
Fronteer Development Group Incorporated: Up 8.52% in one day!
High River Gold Acquires Chaya Nickel Deposit
Staccato Gold Resources: BUY
![[Most Recent Quotes from www.kitco.com]](http://kitconet.com/images/quotes_4b2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
Some of the comments that arrived in the post bag this morning that may be of interest to you.
Guys,
You know I love ya and I’ve made a quite a bit with KGC. My concern is what happens if the kleptomaniacs in the Kremlin decide they’d like KGC’s Russian assets all for themselves?
Just a consideration.
T
Hello
Things never change in politics. In this province of B.C., in 1972, we elected a radical socialistic government, which soon took steps almost destroying the mining industry. They were booted out three years later, but huge damage was done. Today we have a supposedly liberal type bunch who are busily enacting stupid “green” rules and regs, which will again hammer all industry, including
mining. Politicians today are the sickest know-nothing bunch of moon baying creeps the world has ever seen.
D
Bob,
What I believe is evolving here and will be more prevalent in the future concerns all of the outsourcing of manufacturing, farming, and many other essentials. I realize that the specifics are somewhat different from the impact of your report on precious metals, but the big picture is the same.
Foreign governments ultimately have the last word on what goes on in their country and will not hesitate to take over especially when economies falter.
Thank you for all the information that you provide in your newsletters. Best to you.
Regards,
J
Comment by Gold Prices — April 22, 2008 @ 10:56 pm
What I believe is evolving here and will be more prevalent in the future concerns all of the outsourcing of manufacturing, farming, and many other essentials. I realize that the specifics are somewhat different from the impact of your report on precious metals, but the big picture is the the same.
Foreign governments ultimately have the last word on what goes on in their country and will not hesitate to take over especially when economies falter.
Thank you for all the information that you provide in your newsletters. Best to you.
Comment by J — April 28, 2008 @ 2:53 am