Core Gold DMMIF

RE: RE: RE: RE: Correa wants 100-200 million in ad

[logical1234]

Don't worry?  Are you kidding?  Have you seen the stupid things that governments can do?  I don't trust them.  Why would you think DMM will get any special breaks?  Until proven otherwise, DMM has a target on its head.

I don't know if it is the fault of the translation, or the silly flowery way Spanish seem to express themselves, but this president does not sound like guy that could get a North American MBA.   Maybe it is just the Peron/Chavez/buffoon style that seems to be the politician standard down there.  No wonder such a rich continent is a mess. 

53% of revenue drops gold to $800 per ounce in Ecuador.  Now take away expenses (eg. $600-700-800 these days) and what are you left with -- not much, maybe a loss, not enough to re-pay the capex and the interest.
For copper it could be much worse -- if the price drops again, I could see Ecuador copper mines being the first to shut down.

I will never invest in Ecuador again.  It is certainly not a place for juniors -- how could they come up with $100 million in advance royalties in addition to $250 million of capex?  Juniors would be forced to sell to majors for peanuts.