Today we will talk about a topic that concerns many investors, about project risks. Of course, when thinking about the implementation of the project, we identified all possible risks that are waiting for us.
In order to make it easier for you to understand and easier for us to explain, we have divided the risks into groups: possible/impossible. And now it’s time to get acquainted with them!
Technological and technical
Improbable
The project involves the use of modern and new gold mining equipment and technology. Opencast mining, underground workings and dam construction.
Natural
Probable
Rains, snow, which will not allow to work effectively at full capacity, but the project is designed for the warm season April — November. Protracted negative weather conditions in summer at the project site are unlikely to occur.
Human (personnel)
Probable
It is minimized by the effective work of the security service (theft), recruitment (outsourcing personnel service), job descriptions, work control, safety control, distribution of responsibility of the company management and production managers.
Political
Improbable
The project has the authorities’ support, has all permits, the project initiator acts as an investor in the Republic of Kazakhstan.
Economic
Improbable
The project implies production of the most liquid product in the world, the price for which will rise in the next 2–3 years, the project is designed for 2 seasons of payback and return of funds, which minimizes the risk of price fluctuations.
Competition
Probable
The entire volume of production will be bought back by the National Bank of Kazakhstan, the appearance of other major producers in the country is not expected in the near future.
