RE:RE:RE:RE:RE:RE:RE:Be readyDirkStHouse wrote: so what is the real didipio aisc , if we are realistic and add taxes at... what is it now 65 or 70% ?
Please point me to any miner in the world that pays that besides us ...
Good question DirkStHouse.
We might get a glimpse next week.
Might be a bit early to get a full reading on tax implications until further into 2022, but there was
some revenue coming from Didipio in second half of 2021.
I can yell you that Didipio did not pay any income taxes at all, so far to date, from what I could see
on previous F/S`s going back years since the FTAA stoppage. The F/S notes advised tax holiday. Probably due to the 5 year clause in FTAA to recoup all capital costs for mine.
It is of note that Royalties and all other taxes are part of the 60% so it is doubtful that figure will change materially and is actually not comparable directly to other jurisdictions. I admit it seems far higher than other jurisdictions, but we will see what it actually comes out to. It was 0 for the other years operating under basically the same agreement.
Even assuming the staggering 60% take, it is better to have 40% of a lot that 70% of a little.
One reason they do not include taxes in AISC is that if gold price ( or copper in this case) below a certain point you do not pay any income tax. You have to keep paying the AISC iunless you shut down. Also various accounting may affect the amounts.
It will be interesting to see how much of the actual FCF is impacted by the taxes ( could be all, could be even more, or could be less ( my guess) Depends how the profits are counted ( additions and subtractions)
Guess only true way to determine is when we see the actual payment of taxes to government vs the actual FCF generated to us. I suspect it will be more than Haile or NZ operations in 2022, but we shall see.
Lets hope that Gold price keeps rising so that the lower tax jurisdictions with the higher AISC
start giving us some bang.