RE:RE:This can't be goodAura has such a low PE under 9x and estimate of 4x by end of next year, that it more than covers for this political risk neg news. Now we know why the price drop from high of $17.50, hit the low of $9.01 not long after the election in Honduras.
My rough estimate that Aura could be worth $35ml in direct tax revenue to Honduran Gov before local wages ect. Might just be a way of trying to negotiate higher tax rate. Brazil gets around 30-35% tax per oz after costs. The Aura mine has been around for a very long time and no doubt contributes to the local economy, plus provides clean water and medical services to the locals. I know in the past the despute was about moving bodies at the local cemetary, families were paid and Aura is trying to work around this area. Also families continued to bury new bodies in the cemetary then asked for compensation. So this wasn't just Aura acting in any type of bad faith. To date no third party proof that Aura has caused any new enviromental damage since taking over the mine from Yamana gold.
All mining in every country causes some damage and also provides employment and tax income. All we can hope for is that mining is done in a sustanable and safe way. We need publicly traded companies mining around the world, that are open to public inspection and regulation. I believe developing countries would be faced with much more unregulated and unsafe mining practices withought public mining companies.