Ivanhoe Mines Ltd T.IVN

RE:RE:RE:RE:RE:RE:Congo ruling coalition wins legislative majority,

[bloomfield18]

Cash Tango,

That’s a joke, right? Three provinces, Saskatchewan, Ontario, and Quebec are among the top ten mining jurisdictions in the world. Manitoba, BC, Yukon, and NWT are in the top twenty. DRC was in the middle of the pack with 30% corporate tax rate and 2% royalty, competitive with most jurisdictions. Now royalties have increased to as much as 10% of revenue, tax rate has gone up to 35%, and free government interest in all projects increased from 5 to 10%. I have no doubt that when the 2018 Fraser Mining Survey is released in about a month, DRC will be reassigned a new position close to the bottom, if not dead last. I’m sorry to say, there is just no way to make this pig of a government look like a beauty queen. It’s like waiting for a drunken uncle to finally kick the bucket.

https://www.fraserinstitute.org/sites/default/files/survey-of-mining-companies-2017.pdf

In the absence of genuine political reform, the Company might consider starting construction at Platreef, while still advancing Kamoa through feasibility. This is a really amazing long term mining investment, but we’re dealing with impossible people, and you need the patience of Job. Paradoxically,  a slowdown in China may work to our advantage. Chinese partners may not feel that much pressure to rush into production. The government may then be forced to reconsider their precipitous tax grab. If they’re overthrown by opposition, all the better.