The actual risk in the Zimbabwean mining industry was not nearly as bad as perceived, a junior operating in the country said, likening its situation to being "alone in Alladin's cave".

Diversified exploration and development firm African Consolidated Resources (ACR) CEO Andrew Cranswick said at a mining conference in Cape Town that its shares were trading at a discount in London because of this.

"The real risk is not anywhere near the perceived risk," he insisted.

Zimbabwe, rich in minerals including gold, platinum, coal, and diamonds, has the highest inflation rate in the world, earlier this year pegged at levels above 1 800%, and long-standing President Robert Mugabe has verbally clashed repeatedly with western powers over his economic policies.

Cranswick said that the countries economic situation, in fact, made certain things, such as greenfields exploration, cheaper.

Earlier in the day, Chicago-based Hale Advisors founder David Hale said that the situation in Zimbabwe could improve significantly, should the splintered opposition party manage to oust Mugabe from the country's top job.

The aged president has served in his post since the country gained its independence from Britan about three-decades ago.

Government has been threatening over the past few months to pass into law an act that would effectively give it a free one-quarter stake in all of the country's mining operations, and force miners to transfer equity to locals.

However, many have described this as political posturing ahead of the upcoming elections.

"It's like we're alone in Alladin's cave," enthused Cranswick, referring to the exodus of foreign investment from the country over recent years.

ACR is searching for platinum and gold in Zimbabwe, where it has its headquarters

Cranswick said that he had noticed companies beginning to "trickle" back into the country.

Platinum producers Aquarius Platinum and Impala Platinum have stuck to their investments in the country.

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