Sterling say cash flow will increase by 400% in 2006

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paperking - Tue, 27 Dec 05 :

I am very positive on this share but understand that the Mauritanian country risk is a very real factor and probably holding back the share price. While the article qoted gives one some reasons for optimism, the concern for me is that I seem to recollect there was rather a high price for putting the Letter of Credit deal together payable to local intermediaries. If it were ever provable that these funds covered unauthorised payments to government officials IMF's position re this particular deal might aggressively change and not to Sterlings advantage. I choose to believe these fees were genuine payments for work done and the directors are sufficiently worldly wise not to do something that contravenes UK law.


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