Q: May I have your current thoughts on FM? It seems the newly elected president is looking at getting third party verification of the mine’s level of environmental danger. Does FM have a good reputation in that aspect of the operation. There was a recent heap leach mine failure in Turkey with fatalities. Did that occur at an FM mine?
Thanks,
Jim
Thanks,
Jim
5i Research Answer:
SSR Mining was the company in Turkey with the failure. FM has a good operational record and it is positive that Panama is reviewing things. The stock has recovered nicely. That being said, the issue seems to be more a public outcry than an actual environmental/mining issue. The citizens hate the mine. The President and an audit are more powerful, but it becomes a political question as well of course. FM is seeking arbitration, and the mine is not 'dead forever' but it is still a difficult call on the stock, more so considering its high level of debt obligations.