WCM African Mining Operations: Risk Analysis and Recommendations

Report for the CEO of WCM

As members of the board of WCM, we have carefully analyzed the options for our mining interests in Africa. We have considered the risks and opportunities associated with our operations and evaluated each risk according to the scale of very high, high, medium, low, and risk-free. Based on our analysis, we recommend that WCM should proceed with caution in its African operations for the time being.

Risk Assessment:

• Director 1: The Kango site has potential deposits of copper, bauxite, coltan, and diamonds. However, there is no guarantee that these deposits will be profitable. We rate the exploitation risk as medium.
• Director 2: The security risk in the area is unstable, with civil disturbances and rebel activity. There is also a risk of workers and companies being attacked. We rate the security risk as high.
• Director 3: Mining the area could result in health risks for workers and inhabitants, including skin diseases and contaminated water. Site waste and debris are also contaminating the soil in the area. We rate the health risk as high.
• Director 4: The financial risk includes fluctuations in the local currency exchange rate, the need for expensive new machinery, and unreliable transport services. We also need to borrow money to finance the development of the site. We rate the financial risk as high.
• Director 5: The political risk includes changes in government policies and regulations, corruption, and nationalization of resources. We rate the political risk as high.

Recommendations:

After discussing each risk, we joined with the other groups and made a final decision as one group whether or not to continue negotiations with ATZ. We recommend that we should continue negotiations with ATZ, but with strict conditions and safety measures in place. We should prioritize safety measures and risk management in our African operations for the time being.

We also recommend that we should include information about the risks associated with our African operations in our company's prospectus. We believe that it is essential to be transparent about the potential risks and opportunities of our operations to our shareholders and investors.

Conclusion:

WCM has the potential to reap high profits from its African operations, but it must also be aware of the risks involved. We advise that we proceed with caution and prioritize safety measures and risk management in our African operations.