I have long been a holder of Extract and being a very early investor it has been very kind to me. I got out at its peak and re-bought a much smaller amount several months ago. But the news out of Namibia is very unsettling and judging by the market yesterday and today many aren’t convinced that Namibia is going to do the right thing.
Gavin Wendt (ex Fat Prophets head and one analyst I pay attention to) was fairly negative according to today’s miningnews.net article where he says: “projects that were not previously impacted by the legislation may see it eventually applied to them.”
Putting it all together I got out of nearly all of my EXT early this morning with a small profit, since then the market is down another 11%.
This issue of African countries imposing new rules had made me very wary investing in them but Namibia was meant to be the one with the least risk…. I guess that leaves a lot of Australian explorers inside and outside of Namibia more than a little concerned.
Australia isn’t exactly a clean skin in the uranium sovereign risk department either…. hands up those that think the coming “green” senate is going to expedite new uranium mines?
And yet the world needs quite a lot of new uranium supply….
I still hold AEE, GGG and just a taste of EXT.