TSX:SUE.WT - Post by User
Comment by
play_n_layon Jul 12, 2011 9:13am
237 Views
Post# 18821401
RE: Peru Mining ...its all good !
RE: Peru Mining ...its all good !Thanks for the post. Gotta love this "that will not make Peru less competitive"...plus its a negotiation....not an our way or the highway.
This certainly taxes some of the Peru risk off the table. And I would say essentially eliminates that dirty word nationalization that some where whispering about....And its much better then certain countries that are entitled to a % ownership in the company.
For SUE this type of tax is definitely good news. If my understanding of a windfall tax is correct, there would be a tax premium companies would have to pay if they made over x$ in profit. In canada for instance we have this type of tiered corporate tax. Small business's in ontario pay roughly 16% while large corperations making over 500k-1million pay 26%. The idea is large business make lots of money and can afford to pay higher tax rates, while startups need help in the early phases to become profitable.
If this is the case a windfall tax wouldn't impact SUE for sometime. They have spent alot of money developing the property which would go against future earnings for sometime. There will also be the mill amortization.
Anyone seen talk of this on BNN?
GLTA