RE: Still more hypothetical funDon't confuse royalties with total fiscal burdens.
Take Peru and Bolivia as examples:
In Peru the royalty stands at between 1% and 3% of out-the-ground value (depending on the size of the outfit). Then there's worker participation 8% of pretax earnings). Then there's income tax of course. Then there's a 'social fund' that works out at around 1.75% of post-tax income. The total burden to the state for an operating and profitable miner averages (as it does depend slightly from case to case) at 38%.
Less detail in Bolivia, but the final figure is what counts. The system is less complicated but add the two sets of royalties and normal taxation and the burden is at 50% for a company like SIL (projected). There are other models on offer in LatAm, but these two are pretty typical.
So, enough stupid blather about 50% royalties if you don't even understand what your talking about! The question is whether Ecuador will follow a SLIGHTLY lower or SLIGHTLY higher fiscal burden package.
ARU is an obvious buy. If you feel the need to trade every 35 minutes, go trade natgas and forget all this hypothetical dross about a LT winner.