1. Lack of Diversification: Lydian International Limited is primarily focused on the development of its Amulsar gold project in Armenia. This lack of diversification compared to its peers may make the company more vulnerable to fluctuations in the gold market.
2. Political Risk: Armenia is a politically unstable country, and Lydian International Limited may face challenges in obtaining necessary permits and approvals for its Amulsar project. This political risk may also impact the company's ability to attract investors and financing.
3. Financial Performance: Lydian International Limited has reported losses in recent years, and its financial performance has been weaker compared to its peers. This may make it more difficult for the company to secure financing and attract investors.
4. Environmental Concerns: The Amulsar project has faced opposition from environmental groups, who are concerned about the potential impact of the project on the surrounding ecosystem. This opposition may lead to delays and increased costs for the company.
5. Operational Challenges: Developing a large-scale mining project like Amulsar is a complex undertaking, and Lydian International Limited may face operational challenges in bringing the project to fruition. These challenges may include issues with infrastructure, logistics, and workforce management.