Where does a Guyana gold miner find 15 billion to invest in Aruwai Resort?

my friend asked me where does a guyanese get 15 billion to invest in a resort? but i had to confess ignorance
but it got me thinking
15 billion guyana dollars is 75 million us
let’s try and put these numbers into perspective
beverage and drinks giant banks dih after tax profit for 2014 was 2.2 billion dollars
demerara distillers limited 2014 after tax profit was 1.5 billion
guyana bank for trade and industry after tax profit for 2014 was 2.117 billion
in case you pulled a ray charles and cant see where i am going with this
the profit of three of the biggest conglomerates in guyana could barely cover a third of the declared cost of this resort and the owner is a bartica gold miner based on what i’ve read in the papers

in guyana royalties to guyana geology and mines commission is 5% plus 2% royalties
i wouldn’t even bother extrapolating how much gold one would’ve had to mine to have an extra 15 billion laying about and more cash to build another hotel on sheriff street and whatever else this guy is into

here are some more numbers to ponder
2014 gold declarations according to guyana geology and mines commission in 2014 was 387,000 for 2014
97000 short of their target
at 1243$us average price per ounce for the year that was 464,400,000$us
15 billion gy$ is approx. 16% of this total gold declared in 2014
what does mr chunilall baboolall tax receipts, invoices from guyana geology and mines commission and the national insurance scheme look like for the past decade?

these are questions most guyana people high and low would just rather not ask
and people dont want you probing into the affairs of these businessmen

Minister Harmon said proprietor Chunilall Baboolall should be regarded as a true pioneer and his investment should be lauded and emulated. The investment will be a significant boon to the economy and morale of Bartica since it will provide employment for many, while earning revenue from visitors, he added.

aruwai resort looks like an amazing place from the photos
but i dont know what baboolall has been up to in his business dealings
for now i will hold the applause

Numbers are a mofo…guyana goldfields with assets of 338 million $US has a current cash position of 18+ million $US. This project as stated in guyana times was 75 million $US and there is a hotel under construction on sheriff st as well not part of that 75 and Guyana gold fields is traded on the toronto stock exchange

Here is how i arrived at 15 billion



24 thoughts on “Where does a Guyana gold miner find 15 billion to invest in Aruwai Resort?

  1. You just asked some really really good questions.

    What is amazing is that the local press in Guyana would not have even thought of asking the same questions.

    It will be interesting to see if this businessman is supportive of tighter money laundering laws.

    That gold that went to Curacao was not a singular event, there was a pattern and the players knew what was going on.

      1. I grew up in the Bourda market in the 60s and remembered the wealthiest gold miner of those times Fredrick Mahaica ,who would frequent that location when ever he came from the “bush”..I suspected he had couple of romantic interest there .but most memorable he would bring bags of candies to share among the “market children”..He however died a pauper I was told..There are several businesses one could accelerate to $millionaire status in Guyana..by Guyana standard..but the most popular has always been gold mining ..until another lucrative business took over for the past 20 plus years…the illegal drug and cocaine trade… and it has since controlled our Guyana’s “underground” economy..Even though that generated wealth enriched a certain circle in our Guyanese society ..it always flow over to keep business flowing among the honest population.shopping..partying..etc.Guyanese in the Diaspora always say ..oh was progress has Guyana made over the years with all those huge fancy building ..night clubs restaurants and mansions..no..no ..entire housing schemes..and Recreational parks and Island resort..Did someone said that the newly establish Water recreational Park at Providence EBD.was financed by someone who is presently in the Canadian custody for exporting cocaine and money laundering..Now this question of where did $15billion came from to finance this beautiful Island resort..I’m am all for the development of our Guyana Tourist Industry..but it would be a gross bam-bam of embarrassment for some Government officials .who officiated at that opening if a forensic inquiry should reveal that that $15billion came from illegal business dealing..I’m not say that it did ..but curious minds would love to know..Talk Half..an leff Half..

  2. Poor investigative reporting this piece. Writer is devoid of basic financial analysis, for example thinking the entire investment is funded from equity, and accounting for use of own equipment and labour

      1. Perhaps my comments were not well received, but as you have taken upon yourself to produce articles, two relevant points are contained therein, for you to do a good review.

      2. It’s not a matter of your comments not being well received. They were approved and published.
        No public information is available save a few quotes here and there which I used to form my opinion.
        If you have a different numerical scenario I’d love to see it
        But the primary focus message remains, is this cash reflected in taxes, royalties and insurance scheme sheets
        All interviews by owner only mentions that he was in the gold business and decided to diversify on advise

  3. I knew it was only a matter of time before this question came up. Although his name may not be well known among the Guyanese public, you should enquire from the mining industry who Chunilall Baboolall really is.

    1. why you knew it was only a matter of time?
      and there’s no disputing he has the $$ it’s a question about whether royalties etc are being paid by ALL miners and affiliated businesses

  4. Apparently, no one can get a business loan to invest in Guyana. It HAS to be some negative way, right? News flash, despite the fact that people in Guyana still make money the illegal way, most businessmen go through the bank, the LEGAL way. This negativity is insane to me! Do you know that the government gives incentives for investing in Guyana? So therefore the cost won’t be as exorbitant to deter the investment. It’s just good business practices. And this guy is a good businessman and should be applauded for staying in his country and investing in it, unlike almost every family member from our “founder leader” who live else where.

  5. Very pertinent questions Mark, and like you observed, ones we could not expect from our mediocre media establishments, only concerned with gossip and petty sensationalism. I lived in Bartica a few years ago and based on my job and associations I was familiar with the major players in the gold industry who operated out of Bartica. Again, because of my job I was privy to to their official financial affairs. I also happened to be aware of some of their unofficial operations and affairs. Mr Babolall, or Vulture as he is familiarly called was definitely one of the major players, somewhat of an icon in the community. The Sherrif St hotel project that you mentioned was in the works all of 8 years ago, about the time I left the shores. What I can say with certainty is that Baboolall is a very successful and respected businessman. However his official cash flows as far as i was familiar with it, and I hasten to underscore i only know what i know, cannot support a $15 bln investment. I don’t know what may have changed or developed since then, but I still maintain my associations in the community and as far as I am aware, nothing of significance has impacted the business circle since then to generate ten fold increase in income. I said all of this to say that, without casting any aspersions on Baboolall, your questions are worth asking. They may have perfectly legitimate answers too.

  6. You guys are thinking short . This man has been into mining 23 Years now , check GGMC maps of aruwni river area and see the deposits of gold in the area . This man have been mining gold since gold been at 30 000 gyd an ounce. Miners would come out the bush with 5 gallon buckets of gold , gold was so much but the value wasn’t there . These men store these gold over years.. and as 23 years go by the value of gold rise and they got even more gold from their mine . These men have 50+ mining camps scatter around the bush , and each camp at one time use to produce 300+ ounces of gold everyday. Ask any of his workers who worked in his camp to verify this .. 300+ ounces x 23 + years you’ll see how many gold this man have bought . Plus during the 2011 to 2012 period gold price was at 1600 to 1700 USD an ounce .. you guys have no knowledge about mining . Don’t worry about what gold board have declared. What these man have store in thier safes doesn’t have to be included in whag gold board has declared. He just sell what can clear his expenses and save the surplus for years .. and as the price Rise he slowly sell his gold that he have saved .. plus this man only haven’t been mining gold .. diamond also he use to be mining .. you guys got no idea of the mining sector , you guys only speculating… anyhow the summary of this all is : 23 + years of mining 300+ ounces a day , saved for years and sold @ gold price of 1700 usd an ounce .. after many years of saving ..

    1. You are speaking as though y I u know, when you are the one speculating. The gold price never appreciated until about 2007, eight years ago and you are trying to say that Baboolall was saving the majority of his gold for 15 years prior to that. That’s a load of BS. I say that because I know of some of the investments these men were making. You need to rest your theory and defense and let the pertinent questions be asked and answered by the man and his records.

    2. Brother Nazeer, I fully understood your reasoning . But look at this from another prospective. For the 23 years this dude been harvesting gold, was the gold sold or declared to the Guyana Gold Board? It seems as though he was the only person prospecting in the area. Why no other prospector boost this kind of find or come forward and say “yes”, this dude made more than $15Billion in gold over 23 years. Isn’t something synonymous about the supposed amount of years?

    3. Weak!… Ironic enough. 300+ ounces a day… So you have an idea about the mining sector πŸ˜‚πŸ˜‚πŸ˜‚πŸ˜‚πŸ˜‚.

      While I do see your point, I will also like to see the source of your informationπŸ€—

  7. What I was most concerned about, was if the gold this man claimed he harvested was sold to the GGB. We are talking about a lot if gold here. How much did he really harvest and sold to honor his obligation to the Guyana government, and cover his overhead ( fuel, employees, ration, etc)? It’s like he was the only person prospecting in that area. A lot of respectable persons are saying that no one has the right to question where the got this amount of money. It was a stigma forced upon us critics, by the past corrupt PPP government. A government it was said stole billions upon billions of dollars, and are doing everything to keep their stolen wealth hidden. 95% of the Guyanese populace are of the belief that this resort has something to do with the PPP criminal architecture. I only hope that the Honorable Government Ministers who were present at this opening, would not be embarrassed by any future revelation.

    1. Very good point. Like i said there was a lot of unofficial “business” done by and through these players…

      1. I agree, 100%. I am wondering if the government questioned this venture. Something is not right. I know it’s gonna come out at a later date, but something is not right.

  8. Guyana is the number one transshipment port for illegal drugs in the world, not the Caribbean, or hemisphere but the world, that is the global world trade. Drugs from Columbia, Afghanistan etc and all the major players in the world underground transship through Guyana. Guyana borders waters and airspace is not monitored and based on the value of the Guyana dollar and its gdp it’s almost as poor as Haiti which makes it the perfect country for being the worlds number one transshipment country. Guyana is financially and unofficially a narcostate.

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