Argentina: Just the Facts
Bottomline: Win/Win Bigger
OTC: FMNJ – Franklin Mining, Inc. — Stock Guru Profile
Franklin has announced financing with Group de Rothschild Privee. This will include the gas to liquid plant proposed for Argentina.
This is a very logical business proposition. Argentina is a country in desperate need of diesel fuel. Tierra de Fuego is rich in natural gas. Gas to Liquid plants are sprouting up worldwide. Putting a gas to liquid plant in an isolated area at the southernmost tip of South America and creating desperately need diesel for Argentina makes a LOT of sense.
What’s the skinny on doing business in Argentina.
Short answer: GDP has grown in the eight percent arena since 2003, and is expected to continue that growth in 2007.
Argentina experienced an economic crisis from 1999 to 2004. During this period the banking system was in disarray, consumer confidence was waning (precipitating runs on the banks), inflation was rampant, the national debt was both huge and unsupportable, unemployment was rising, and civil unrest was in the air.
Argentina took action. It decoupled the peso from the dollar, followed by devaluation and other economic reforms and began to turn a negative economy into a postive one in 2003, when GDP improved by more than eight percent. Argentina registered an economic growth of 8.5 pct in 2006, as INDEC reported in late March 2007. Argentina has with this announcement registered its fourth consecutive year of strong economic growth. Further, the Argentine economy is expected to register a growth of 8.0 pct in 2007, pursuant to an analysis of local bank Banco Rio published on March 20, 2007.
With an improving economy came higher demand for energy in a country where supply and demand are in relatively tight balance. Argentina’s natural gas production has not kept pace with demand. During winter, the Argentines have had to import gas from Bolivia and reduce exports to Chile. Bolivia has now announced it intends to significantly increase the price of its gas sold to Argentina. This should provide an incentive for Argentina to increase its own natural gas production, which would require higher prices. To encourage energy development, the government has recently eased price controls on natural gas for all but the residential sector. The government recognizes that continued economic improvement is dependent upon growth in energy supplies and attraction of additional foreign investment. Moreover, Argentina is one of a decreasing number of countries in the world where international oil companies have relatively free and open access to oil and gas exploration and development. These factors bode well for Apache as it expands its operations in Argentina.
Many people are surprised to learn that Argentina is the largest natural gas producer in all of Central and South America; the country is second only to Mexico in natural gas consumption.
Argentina’s legal system is a mixture of the U.S. and European legal systems. Its government is organized similarly to our own, with a President (Nestor Kirchner since May 2003) and Vice President (Daniel Scioli since May 2003) heading the Executive Branch (both of whom serve four year-terms); a bicameral National Congress with a 72-member Senate elected by direct vote (one-third every two years for a six-year term) and a 257-seat Chamber of Deputies elected by direct vote (one-half every two years to a four-year term). The country’s nine-member Supreme Court is appointed by the president with approval of the Senate.
Argentina’s unemployment rate is 11.1 percent (9/05); 38.5 percent of the population lives below the poverty line (6/05).
Argentina’s GDP is on a sustained upward climb. With this climb comes political stability, a workforce that needs employment, plus an undeniable and serious demand for diesel fuel which is simply not available.
Tierra del Fuego has gas in abundance. Franklin intends to build a gas to liquid plant in Tierra del Fuego utlizing the gas resources that were heretofore unusuable. Argentina is in the midst of a diesel crisis. A gas to liquid plant can supply a C02 low emission diesel fuel.
To Stock Guru ~ Franklin looks like its in the middle of a win and win bigger situation.
Contact:
Investor Relations
A. Austin & Company
1-702-386-5379
Jaime Melgarejo Jr., President
Franklin Mining, Inc.
2764 Lake Sahara Driveoli
Suite 111
Las Vegas, NV 89117
Website: http://www.franklinmining.com
Phone: 702-944-8972
Fax: 702-838-5130
Source: Dublin Research
About Franklin Mining, Inc: Franklin Mining, Inc. has mining and exploration interests in the United States, Argentina and Bolivia including a wholly owned subsidiary, Franklin Mining, Bolivia S.A, and 51% ownership in both Franklin Oil & Gas, Bolivia S.A. and Franklin Oil & Gas, Argentina S.A.
“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that are subject to risk and uncertainties, including, but not limited to, the impact of competitive products, product demand, market acceptance risks, fluctuations in operating results, political risk and other risks detailed from time to time in Franklin Mining, Inc.’s filings with the Securities and Exchange Commission. These risks could cause Franklin Mining, Inc.’s actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, Franklin Mining, Inc.
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