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3/1/18

Torex Gold (TXG): Both sides

When a mining company starts shouting about THE TRUTH of a difficult CSR situation but is also very selective with the facts it decides to present to its audience, it raises the hackles of those of us with a better idea of the shades of grey that lay between the black and the white of propaganda presentation. This humble corner of cyberspace is not saying that TXG is in the wrong in its ongoing dispute with locals, what it is saying is that minor technical details are not quite the same as the story it prefers to present to the world:
  • That part about the strike, blockade and protest being all done and things getting back to normal by the end of February? Nope, sorry, still going strong.
  • The way they don't tell you that the local landowners want to rescind the contract and state that the contract has been broken by the company due to their lack of compliance to promises? That too.
  • The same local landowners who have now set up a protest at the edge of the El Limon pit, taking over the area and stopping mining activities from happening. That, too.
  • The way that locals have stopped the flow of water to the company? Errr....this one's important, because the No Water = No Mine equation is not a difficult one to understand wherever you're from. TXG calls it "extortion", the locals call it protest, the impasse continues.

Those of who who want the other side to the story should check out this report and also this, filed last week in the Guerrero news site El Sur (no Spanish ability? Google Translate will get you 90% of the way there). Again, be clear that in the view of this blogger neither side is the owner of absolute truth, but getting both sides will help the more discerning investor get a handle on the FUBAR. The moral is really simple, don't go mining in Guerrero. But hey...the rocks were there...and they were cheap...right?