Core Gold DMMIF

RE: oil tax 25% of net

[ez33]

Obviously the oil sector isn't the mining sector. In the oil sector at least the government of ecuador has allowed the oil companies to participate in the revenues from higher oil prices. That is a good omen for the mining industry as commodity prices should continue to rise. So do we add this possible 25% sovereignity tax to ecuadors basic corporate rate? I could see the grassroots explorers walking away to a better tax rate jurisdiction. No exploration means no new mines.
Dmm is a nascent producer however. If DMM can deliver 0ne hundred thousand ounces per year at their estimated cost of production the company should be reasonably profitable. The government revenue collectors will be very happy as well. This stock is way undervalued. Lets hope Mr. Market removes the ecuadorian risk discount as soon as the mining law and sovereignity tax issues are finally settled. Last weeks trading pattern might mean the smart money is anticipating mr. market will react positively to the new mining law and tax regime...