This is the first class in the first module--Risk Identification, Assessment and Mitigation.  In this class, we examine political risks and what investors can do to mitigate them.

 

Class note: Bre-X.ppt

Further information on Bre-X

 

 

 

 

 

Assignment Sheet
Emerging Markets Finance
Darden Graduate School of Business
Spring First Half 2002

Class #2, Friday, January 18, 2002

Topic: Political risks

Case: Busang (A): The River of Gold, HBS #798-002

Recommended (optional) reading: Permissible Country Equity Investment Analysis and Recommendations. (PDF download)  Wilshire Associates, 1997.

Assignment Questions:

1.      What determine the value of Bre-X?  As an investment analyst, how would you conceptually value this firm? 

2.      What kinds of risks did Bre-X face in Indonesia? 

3.      What kind of rules are most important to foreign investors in Indonesia's mining sector? How are these rules made? 

4.      How can Bre-X gain leverage over its Indonesian relationships?

5.      How should David Walsh respond to Minister Sudjana's announcement?