So, Colossus (CSI.to) has to amend its original agreement with COOMIGASP to keep the locals from revolting. The main hush money is a U$206,000 monthly payment to its JV partner that get repaid as from year two of production… so let’s see how that math works:
- Monthly payment to COOMIGASP: U$206,000
- Estimated membership of COOMIGASP (according to Brazil gov’t): 45,000
- Monthly amount paid to COOMIGASP per member: U$4.58
Thus CSI “gets to utilize the majority of its $90m treasury” while it hands out enough to make one feijoada a month to the thousands of locals around them. Oh yes…..that will keep everybody happy there for sure. Whatever makes you think there will be more amendments to the deal in the pipeline, Otto….?
Said it before and will say it again: Don’t buy it, don’t sell it, just avoid CSI.to.