RE: RE: breaking news...from EcuadorWhen performing my own DD, I use a 35% tax rate. In FDN case, Ecuador takes 52%, with a larger sliding royalty therein depending upon the price of gold.
I believe this to be a reasonably good deal for Kinross. It was negotiated and agreed upon. K would not accept the terms unless they felt that it was workable, and in my opinion it certainly is.
Many are thinking that the "commie" President Correa will place unreasonable demands. On the contrary, this is a deal which guarantees a revenue stream for Ecuador. As a regular visitor to that mystical and wonderful country, I am extremely supportive of the government. Growth is at record levels across the country, there is very little real poverty, free enterprise is fluorishing, the Ecuadorian people are enterprising and self-motivated. Infrastructure development is occurring throughout the country, from highways, pipelines and fancy hotels along the amazing beaches, to quality government-funded hospitals in even the poorest cantons.
Mr Correa is an enlightened and highly respected leader. The people appreciate the political stability that Ecuador now has, and the country will be a wonderful place to operate.
Well done to Ecuador and Kinross!!!