RE:Should Read K-K Worth Approximately $6.27 USD Share$6.27 USD share for K-K is actually above both TD and BMO price targets. So, my valuation based on NPV6 would be considered overly permissive by every single financial analyst. The new tax regime will reduce value by about 10 to 15%, depending on how the extra 5% free government share is determined.
The real spoiler is the 5 year Stability Pact, which does not provide much stability at all. Those not already in Congo, will stay away in droves.Those already in face hard choices. Five years just allows enough time for payback. It's only after five years that profit really starts to add up. You could easily have a scenario where a company invests in rail and power infrastructure, construction at huge cost processing facilities, and then after five years the government declares copper and zinc "strategic metals" subject to a revenue based 10% royalty. That's on top of the super tax. Then you're in the same boat as China Moly and Glencore, where nearly all profit gets siphoned off to the dictatorship. It's going to put IVN in a difficult position. They don't have money to burn. My guess is they'll put most of their effort in South Africa, now that Ramiphosa is President. There doesn't have to be any official announcement. They can preferentially channel precious funds where it would most benefit shareholders.