WCM African Mining Project: Risk Assessment and Recommendations

As members of the board of WCM, we have carefully considered the risks and opportunities associated with our potential mining interests in Africa. Each of us has researched a specific aspect of the industry and evaluated the risks according to a scale of very high, high, medium, low, and risk-free.

Director 1 has found that the Kango site has potential deposits of copper, bauxite, coltan, and diamonds. However, there is no guarantee that these deposits will be profitable. In a nutshell, we rate exploitation risk at a medium level.

Director 2 has reported that 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 do not see eye to eye with those who believe that the security risk is manageable. Instead, we rate it as high.

Director 3 has reported that 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 take delight in the fact that Director 3 has brought this issue to our attention, and we rate the health risk as high.

Director 4 has reported that 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. And so forth. We rate the financial risk as high.

Based on our analysis, we recommend that WCM should proceed with caution in its African operations for the time being. We advise that we should continue negotiations with ATZ, but with strict conditions and safety measures in place. What's more, we recommend that we include information about the risks associated with our African operations in our company's prospectus.

In conclusion, WCM has the potential to reap high profits from its African operations, but it must also be aware of the risks involved. For the time being, we recommend that WCM proceeds with caution and prioritizes safety measures and risk management in its African operations.