Q: What is your take on the very short news story today about FM withdrawing its arbitration against the gov’t of Panama? Does this point to optimism for a favourable settlement, or is it more of capitulation to negative prospects for recovering anything much for its loss? Does it still have any other arbitrations for its claims? Thanks
5i Research Answer:
We would view it as more positive than negative. It was likely a condition from the government in order to continue discussions about the mine. It of course guarantees nothing, but we think any discussions are positive. The government is likely missing the revenue from the mine, and that can be motivating.