Q: Do you think there is some chance of FM .TO getting back on track in Panama ? Thanks once again Larry
5i Research Answer:
Considering the recent government moves and the extreme political sensivity to the mine, we would not really expect a re-start here. FM is seeking big damages in arbitration, and Panama is seeking $800M from FM to close the mine. FM recently got $500M from Chinese investors to help its balance sheet. The mine is significant to Panama's GDP, so anything could happen here. But any arbitation proceeds, even with a win, are likely years away. We would still consider it a higher-risk security, though the market has likely written off Panama and thus any good news there would certainly be very positive for the stock.