Tag Archives: Sovereign risk

Can Uncertainty Over Sovereign Risk Create a Buying Opportunity for Nevsun Resources?

Eritrea is a mysterious economic zone
“Eritrea is a mysterious economic zone but companies operating in the country are simply overlooked by the market. Almost all reports on sovereign risk label it a “no go.” But what we found out is that idea is a bit exaggerated. That is why frontier markets like Nevsun are there to take full advantage of the growth” – Nicholas Bhandari, Head of Quantitative Research at Equities.com

By Joel Anderson | Equities.com,

The Equities.com research team looked into Nevsun Resources (NSU) with its most recent research report. The Canadian resource company, which is active in Eritrea, presented an intriguing challenge in terms of valuation, so we talked with Nicholas Bhandari, Head of Quantitative Research at Equities.com, about the approach they took in digging into this mining company.

You can download the entire research report in the research section at Equities.com.

EQ: So with Nevsun Resources, you’ve delved into new territory a bit in trying to assess the risk associated with operating a mine in a country with uncertain political and economic futures. How did you approach this challenge, as your other reports to this point haven’t included this sort of risk?  Continue reading Can Uncertainty Over Sovereign Risk Create a Buying Opportunity for Nevsun Resources?