The figures and numbers of ASX:MML are impressive, more so when you compare it to peers. The rewards are impressive. But it isn’t the whole story and remember risk and reward are always related. The higher the reward, the higher the risk and so it is with Medusa Mining who have a profitable gold mine on Mindanao, 2nd largest island in the Philippines.
Sovereign risk in P is elevated. Governments aren’t enthused by foreign miners. Throw in outright insurrection on Mindanao by Islamist extremists who the army cannot contain and locals who aren’t pleased with miners and the threat to water tables via questionable tailings dams...and the risk is huge. Plus, Mindanao has plenty of hurricanes and earthquakes...the last just two weeks ago.
