MOY and NKP

Whenever politicians are involved, it is always bad news for a stock. Once a high flyer with great prospect, when local politicians kick up some fuss, you can almost be certain that bribes have not been paid... adequately.

After some deliberation, I got rid of NKP which has promised a lot but cannot deliver due to problem with local politicians and the law. South Africa is not the best place to invest due to Black Empowerment policy. Like Malaysia, it enriches a certain sector of the "natives" only. The more political power you yield, the richer your children get.

From now on, I will leave South Africa alone.

I made a tiny profit but after accounting for the duration that I owned NKP, it is a slight loss.

Why MOY? Well, I read in ABU's presentation at the D&D meeting in Kalgoorlie that it has the cheapest EV/oz Au. Its gold is only worth under AUD$10 per oz (but I calculated it at AUD$34million/1.24million oz = about $27/oz).