Do you remember that iconic scene from Step Brothers, where Will Ferrell, in an attempt to get back at his brother Dale, played by John C Reilly, hammers around irrationally on Dale’s drum set while pretending he knows what he’s doing?
The scene is then followed up by Reilly discovering what Ferrell had done and screaming “did you touch my drum set?” before the tussled around like trailer park boys.
That scene is a bit like the situation that Roscan Gold (TSXV: ROS) finds itself in. Despite all of the issues that have surfaced in Mali in recent years the company has somewhat irrationally pushed forward with a project in the country.
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Barrick is a prime example here of what a disaster the country can be to operate in. I mean, the government literally stole $107 million in gold. Yeah, it’s not easy to walk away when there’s sunk costs or whatever in country, we get that, but that isn’t exactly the case here for Roscan.
Case in point being the fact that the company released a preliminary economic assessment just last week on their flagship asset in Mali. And they intend to transition from an explorer to a developer. Which sure, is a positive. But their stock unquestionably suffers from the “Africa discount”, which more specifically might be a “Mali discount.”
And if we’re all here to make money.. doesn’t that discount kind of negate the effort a bit?
Anyways. Lets dive in.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
