Return of a $20m investment to gouvernementHi my consumption of beers is certainly affecting my judgement again.
The gouvernement should give Abcourt the $20m and from my calculations would be a 300-500% return on their investment.
If $20m is lent $10m would be spent on material that would give the gouv a 15% tax return.
Then the $10m spent would also give the gouv a 40% income taxe return.
The next $10m would go to salaries that would give gouv a 40% return.
The 60% left for salaries after the 40% taxe would also give a 15% return on taxes and certainly
another 20% when they buy material and consume.
The result would be
!5% of the first $10m as taxes = $1.5m
40% in income taxes = $4.0m
The second $10m in salaries
would generate income taxes of = $4.0m
The $6m left in salaries would
generate 15% taxes and another
min 20% in income taxes = $2.1m
and if Sleeping Giant mine produces
20k oz and generate a $13m revenu a year
taxable if we assume a 50% taxes going to
gouvernment generate another $6.5m a year
for 10 years min = $130m x 50% =$65.0m
The results would be $76.6m in income to the gouvernment
And even if the mine never produces an oz the gouv would have recuperated $11.6m
Can there be any better investment for the gouvernement.
I know that my estimates of the return to the gouv is low and if gold price raises the return could be much higher.
The gouv should give Abcourt the money needed to proceed.
Fernand