Date: Wed, 17 Feb 2016 00:01:48 +0100
Watch-The true FACT: What is it like investing in Eritrea look like?
By Guest Writer,
February 16, 2016
Why the biased Fifth Estate Canadian CBC program chose this particular time to broadcast its propaganda of defaming Nevsun Resources Ltd and the Eritrean government?
Nevsun has been operating Bisha mine, which is a modern Gold/Cooper/Zink mine in Eritrea, for the last five years. Nevsun has been vindicated by external independent experts who investigated if there were any human right abuses or practices which may not meet international standards.
Despite this western media particularly Canadian media are out there to accuse the company and Eritrean government without providing any tangible evidence as well as not being in Eritrea let alone being in the vicinity of Bisha mine.
For unsuspecting and gullible person, the CBC Fifth Estate program may portray a message that western media are standing up for Africans from human right abuses by their government, supported by Canadian companies. However, when one looks at facts and testimonies by American, European and other western diplomats after their visit of Bisha mine which are completely the opposite of what was portrayed by CBS program, the program’s motive becomes clearly visible.
The timing of the biased and defamatory CBC’s Fifth Estate program was to slow down or delay the negotiation to finance the development of the Colluli Potash Mine in Eritrea operated by Australian company Danakali Ltd. as well as to discourage Nevsun from reinvesting its staggering cash reserve inside Eritrea.
Currently Danakali is weighing its finance options and actively pursuing and negotiating with various finance firms to fund the Colluli potash project. Although the negative impact of CBC propaganda can not be undermined, right after the broadcast of this program, the share price of Danakali has risen by 14% from $0.25 to $0.29. In addition one of the non-executive directors of Danakali has substantially increased its holding in the company.
Nevsun’s current asset and cash as at end of September 2015 was US $560 and $434 millions respectively, with zero debt.
Even Nevsun management previously indicated their intention to diversify the business from Eritrea by reinvesting their excess cash in other jurisdiction, like the Colluli potash project for instance.
The aim of the fifth Estate program is, therefore, to discourage Nevsun’s management from entertaining the idea of reinvesting in Eritrea on the back of the improved image of Eritrea in international stage and the recent re-engagement of Eritrea with European Union and other regional powers. What a shame!