Newstrike Capital Inc NWSKF

RE:Mexico killed gold investment

[goindeeper]

Mexico "imposes a 7.5% royalty on the pre-tax sales income from mining activities, plus an additional 0.5% on gold, silver and platinum."

I don't understand your worry.  Mexico is taking an 8% royalty.  The IRR is projected to be greater than 26% (26% after tax IRR of 26% per Sept 2013 presentation).  So worst case is NES assuming 0% tax to get the 26%, so IRR would be 26-8= 16% IRR.  That is still a good investment but is only based on drilling up until January 2013.  None of this year's drilling has been included in those numbers yet, so I expect the IRR will only go up based on the drilling results to date.

Also, from what I have read, Mexico's taxes are now in line with other jurisdictions, so it isn't like other jurisdictions have an 8% tax discount over Mexico now.

Please correct me where I am wrong.