Replies to post #19165 on Stargaze Entertainment Group Inc (STGZ)

[EarnestDD]

You do not know how Guinea will benefit under the Rio Tinto contractual arrangement or under any possible UMNG arrangement.
this is laughable.
UMNG has NO Experience in this industry or country.

[rwa3848]

Fair Play is an important aspect of share price valuations. It is particularly important for conglomerates in the information age to be perceived as acting in the interests of third world countries. To accomplish positive PR for third world business activities, these conglomerates make room for government backed third party.

In other words, if Rio Tinto had complete control over the project, a riot would ensue and its share price would fall. Loopholes and contractors also substantially lessen balance sheet debt burdens.

Even if UMNG were only included as a shell company, it would be beneficial for Rio Tinto because it reduces balance sheet costs thereby making the project appear more and more profitable to existing and prospective shareholders.

[Ericus]

And... another point. Well done.

[coffeepowered]

Balla Keita apparently has a link to the President's 4th wife, which gets him meetings and photo opportunities with important people, but not any credibility. He has read all the work done by Rio Tinto and is trying to repackage it for his own benefit.

Through Rio Tinto's project, Guinea will be getting over $5bn in new infrastructure plus billions more in taxes and royalties over the next few decades, of which a fixed percentage is specifically required to go to local communities. It will actually happen too, as opposed to the smoke and mirrors being promised by UMNG, and it will be developed by a listed international group that is required to comply with proper environmental standards and business practices. IFC also owns 5% of the project, to help keep them honest and ensure they don't just pillage the country for profit. Where are the quality/transparency safeguards with an unlisted company trading on the pink sheets with no finance and no major project experience in any country, let alone West Africa!

I agree that Guinea needs infrastructure development to make full use of its resources, but who is better placed to provide them with that infrastructure?