BMO like i said, a scam...
"This claim may be a starting point for negotiation with the Mexican tax authorities, rather than any governmental edict"
Analyst Actions: BMO Research Cuts Primero Mining TP to $3, Reiterates Outperform on Mexican Tax Development
02/05/2016 11:37 | Midnight Trader
11:37 AM EST, 02/05/2016 (MT Newswires) -- Primero's Mexican subsidiary has received a legal claim from the Mexican tax authorities (SAT), aiming to nullify the Advance Pricing Agreement (APA) issued in 2012.
BMO views this as a negative.In the original agreement issued by SAT in 2012, it was deemed that Primero's basis for paying tax in 2010-2014 was based on its realized price for silver (under the Silver Wheaton stream agreement), not purely on the spot price. "In the event that a new tax regime is instituted whereby Primero must pay tax based on the spot price of silver, not the realized price, we estimate that the incremental tax liability could be ~$20-40 million per year, depending on the silver price at the time."
This claim may be a starting point for negotiation with the Mexican tax authorities, rather than any governmental edict. In the event that a negotiated solution cannot be reached between Primero and SAT, a court decision would likely take years. This claim is without precedent, and while the market may impute the worst possible scenario, BMO Research is optimistic for a more agreeable resolution.
Maintain Outperform, but cutting target price to C$3.