Post by
Moogul on Jun 09, 2021 2:24pm
Peru Election
The weakness in the SP of late has to be connected to fear around the leftist leader's pending win (likely bout not certain). Fears of higher taxes and royalty's for mining companies (at one point even repatriation although that is not considered on the table anymore). Apparently; however, from what I have read is that he likely cannot effect to drastic of change with their congress (or equivalent) still being divided. Also While a tax increase would be an incremental negative I'm not sure how a royalty increase would impact DNG (after all they are just a gold miller and not involved in extraction - they may be exempt). All in I doubt this election really amounts to much when the dust settles. Outside of repatriation (unlikely extreme scenario), I assume this FUD blows over and the SP heads higher. Fundamentals for the business itself have never been stronger. GLTA. I'm going to likely add more if we see any more knee jerk reactions downwards.
Comment by
Moogul on Jun 09, 2021 2:26pm
Another good sign is that we haven't seen any insider sales in recent weeks so it appears management is unconcerned or atleast not enough to take profits...