Global Value Investing

[nologic1986]

Fernando,

Just curious as to your thoughts here on how the BAJ situation plays out.

I'm sure you probably glanced over this article but in case you haven't: JG speaks out

It suggests that a non-dilutive option is on the table (if the DD can be finished quickly enough and lending agreements can be amended and such). I'm just curious to hear your thoughts since I'm planning on significantly averaging down here soon. It just seems to me like there is no way this mine will not go into production or even slow down for that matter given the parties involved. If you just consider what is at stake for everyone and the options available to them, a Nash equilibrium right now seems pretty positive. I actually see MK as hugely beneficial in this whole process as they will do whatever is necessary at this point to protect their investment (and there isn't anything they can really do at this point due to the agreement they signed with the company) and I see substantial upside for guys like us because of this.

Any thoughts?

Take care,
Jim