Waiting for "game changer" news
What a frustrating week we had last week, the Argentine Government's poorly worded and even more poorly understood change in government policy hit us like a ton of bricks. Barrick, Goldcorp and Yamana have indicated that the cost (tax) of this change is in the 1.2% to 1.6% range and Goldcorp even made the point that this cost is TAX DEDUCTIBLE. Heck, the price of gold moves 1 to 2% up or down on many, many days
Of course part of the downturn in the SP's of the junior gold stocks with Argentine properties is likely "they made this change.... What's next?" fear. or the "We can't trust the Argentine Government" fear. question?:I ask you.... Can you really trust any government? Can you really trust any politician? Argentina is acting exactly like you would expect any government to act, ..................they are not a business and they are not run by business people.
I make the argument that Argentina has now made their move that we know what it is. One of my Argentine connections told me they were widely expecting their government to make a policy change and thus it was not a surprise that a policy change was made. After the dust settled from the fear .....................the general feeling in Argentina is this policy change is NO BIG DEAL, in fact , I was told that this change will have no material change in foreign mining companies outlook and profitability of mining activities in Argentina.................... full steam ahead.
Now on to the "GAME CHANGER" news I am waiting for ...................... ARIZARO drill results. This nice sideshow that the Leasks have been drilling could be the BLUESKY that a junior acquiring company will most certainly pay an even bigger premium to current SP. You can be certain that the Leasks will not give away Arizaro as a freebee as part of the Lindero Gold Deposit, no sireeee, it will be "pay-up or shut-up" if you want to takeover MDR. Stay tuned ladies, good times just around the corner.
Hopefully Gold keeps trending higher and that we get the game changing Arizaro NR in the near future.
Cheers, (Time for some game changing news, we need it), your capitalist bud, SL
PS: Governments are who we thought they were and frustrations are a common thread to being a junior mining investor. Dennis Green said it well after a loss to The Bears (click below)
https://www.youtube.com/watch?v=aYKIcnj1MJY&feature=related
Oh yeah, almost forgot.................... AW2................... good tunes!