Rusoro Mining Higher Today After Saying Venezuela Unlikely to Nationalize Gold Industry
Rusoro Mining Ltd. (RML.V) is getting a 12% push higher today, with shares climbing off their recent 52-week low of 12 cents a share after telling investors Venezuela is unlikely to follow through with threat to nationalize its gold industry.
President Hugo Chavez yesterday set off new worries about mining activity in the South American country by telling Venezuela state television he plans to "nationalize the gold, and we're going to convert it, among other things, into international reserves because gold continues to increase in value," according to reports.
But Rusoro said today it anticipates few, if any, changes in its operations despite Chavez' remarks. The company said the statements instead reflect the government's desire to better control illegal mining and smuggling. "Gold produced by these illegal operations is often smuggled out of the country or sold illegally, and the government is now taking action," Rusoro CEO Andre Agapov said in a statement today.
Rusoro currently is the only large gold miner operating in Venezuela, producing about 100,000 ounces last year.
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