note RANGY rating Congo a low "C", and thus staying clear of trouble :)
Randgold grades every African country on a scale of A to D in four key categories: geological opportunity, political stability, economic situation and infrastructure. These ratings are then pooled to give an overall rating for each country, which guides investment decisions.
Countries which score overall "A" grades are those in which Randgold will invest its own money in grassroots exploration. Its most recent ratings list Burkino Faso, Cote d'Ivoire, Gabon, Mali, Senegal, and Tanzania as grade "A" countries.
Although a country's geological endowment is not the deciding factor in its rating, each of the current top performers scores an "A" for its known gold deposits. Without exception, they are also rated "B" for political stability -- arating which Mr Reynolds says would also extend to South Africa.
Assessments of geological potential are based on data from government departments and previous mining operations, as well as opportunities to acquire further data. A top grade generally reflects an "open file policy", which guarantees access to geological archives.
Countries which secure an "A" for geology but received a lower overall rating include Eritrea, Ethiopia, Kenya, Niger and Zimbabwe (which achieved "B" grades), and the Democratic Republic of Congo -- formerly Zaire -- which is richly endowed but scores poorly in the other categories and ranks as a "C" overall.
Countries which score an overall "B" are not beyond investment, but will not be considered by Randgold while other opportunities exist in "A" grade countries. "C" countries are often in the midst of rapid change following a revolution, a change in government, or the introduction of a new economic policy. Alternatively, they may fall into the category defined by Mr Reynolds as "insufficiently known". Those countries with "D" grades are those where investment is inconceivable. |
