Shares Magazine - August 22, 2019

UNDER THE BONNET We explain what this company does

38 | SHARES | 22 August 2019

ĐŽŵƉĂŶLJĂŶĚŝŶǀĞƐƚŽƌƐĂůŝŬĞ

ŐŝǀĞŶƚŚĞĐƵƌƌĞŶƚŐŽůĚƉƌŝĐĞ͘

&ŽƌƌĞĨĞƌĞŶĐĞ͕ĂŶLJ/^ďĞůŽǁ

Ψϭ͕ϬϬϬŝƐĐŽŶƐŝĚĞƌĞĚĚĞĐĞŶƚďLJ

ƚŚĞŵĂƌŬĞƚ͘

dĂŬŝŶŐĂĚǀĂŶƚĂŐĞŽĨƚŚĞ

ĐƵƌƌĞŶƚŐŽůĚƉƌŝĐĞ͕ZĞƐŽůƵƚĞŚĂƐ

ĨŽƌǁĂƌĚƐŽůĚϯϬ͕ϬϬϬŽƵŶĐĞƐ

ŽĨŐŽůĚĂƚĂŶĂǀĞƌĂŐĞƉƌŝĐĞŽĨ

Ψϭ͕ρϭεƉĞƌŽƵŶĐĞƚŚŝƐŵŽŶƚŚ͕

ŽŶƚŽƉŽĨƚŚĞρϬ͕ϬϬϬŝƚĨŽƌǁĂƌĚ

ƐŽůĚŝŶ:ƵŶĞĂƚĂƉƌŝĐĞŽĨΨϭ͕ϯϯϳ

ƉĞƌŽƵŶĐĞ͘

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ƚƌĂĚŝŶŐŽŶϮϬ:ƵŶĞĂƚĂƌŽƵŶĚ

ςςƉ͕ĂŶĚĂƌĞŶŽǁŚŽǀĞƌŝŶŐ

ĂƌŽƵŶĚƚŚĞϭϭϬƉŵĂƌŬ͘

AMBITIOUS PLANS

tŚŝůĞƚŚĞŶƵŵďĞƌƐĂƌĞƐƚƌŽŶŐ͕

ƚŚĞĮƌŵŝƐĂŵďŝƟŽƵƐĂŶĚǁĂŶƚƐ

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ƚŚƌĞĞĂĚĚŝƟŽŶĂůŵŝŶĞƐŝŶƚŚĞ

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ďĞůŝĞǀĂďůĞ/^ŽĨΨςρρƉĞƌ

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ŝŶƚŽƚĂůŬƐǁŝƚŚdŽƌŽ͘

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ŽĨƚŚĞƟŵĞ͛͘

UPGRADED

OUTPUT GUIDANCE

ƵƚƚŚĞĚĞĂůŚĂƐůĞĚZĞƐŽůƵƚĞ

ƚŽƌĞǀŝƐĞƵƉŝƚƐĨƵůůLJĞĂƌ

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ŽĨŐŽůĚĂƚĂŶ/^ŽĨΨεςϬƉĞƌ

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LJĞĂƌ͕ĂŶĚĞǀĞŶƚƵĂůůLJϳρϬ͕ϬϬϬ

ŽƵŶĐĞƐĂLJĞĂƌ͘

ŶŽƚŚĞƌƚŚŝŶŐǁŚŝĐŚǁŝůůŚĞůƉ

ZĞƐŽůƵƚĞ͛ƐƉƌŽĚƵĐƟŽŶŝƐƚŚĞ

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ĨƵůůLJĂƵƚŽŵĂƚĞĚŵŝŶĞ͘tĞůďŽƌŶ

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ƉƌŽĚƵĐŝŶŐϯϬϬ͕ϬϬϬŽƵŶĐĞƐŽĨ

LJ Yoosof Farah

ZĞƉŽƌƚĞƌ

POLITICAL RISK TAKES SHINE OFF GOLD MINERS

ONE IMPORTANT THING to consider

with miners is jurisdictional and

political risk. Particularly for gold

miners, many of whom operate

in West Africa, which has huge

reserves of gold but can be volatile

from both a political and security

viewpoint.

This was all too clear when

Canadian miner Avesoro

Resources (ASO:AIM) had to

suspend one of its two mines,

the Youga mine in Burkina Faso,

after it was stormed by armed

strongmen looking to steal

gold ore.

Its shares plunged from 65p to

50p following the news, and are

hovering around 55p with the mine

still suspended amid reports the

miners are reluctant to go back

to work.