impact of new WPT Cote d'Ivoire already gets a 3% royalty and a 15% carried interest in Agbaou. The new chatter is about a 19% additional windfall profits tax after an allowance of $615 per ounce op costs. Per EDV MD&A, forecasted cash costs for Agbaou are $635, roughly in line with allowance. Agbaou has a forecasted production of 100,000 plus ounces per year.
Impact - instead of the net profit annual production of 100,000 ounces per year, we are looking at a decreased figure of say 85,000 to 90,000 per year to compensate for the WPT. This is significant for this mine, but the IRR's were already in the 30-50% range, so not a show stopper.
Overall impact - instead of annual EDV forecasted production in excess of 450,000 plus, we are looking at that being reduced to maybe 435,000. Not very significant.
These are just all quick guesses and not to be relied upon. History shows that there will be much negotiation with the government before anything new is implemented, if at all. It does appear though, based on what has been released, any valuation of EDV given this new WPT would decrease but not significantly.