Endeavour Mining plc T.EDV

London calling

[templetooth2]

My understanding is that to be included in the FTSE 100, you need to be a domestic corporation, thus the plc.

Any tax treatment of dividends will be very small beer in comparison to the expected benefit of not only being in the Footsie by year end, but just generally being in front of an audience that doesn't automatically squirm when "Africa" is mentioned.

Some time ago it was trial-ballooned that Kinross would follow, possibly as part of an asset split-up. Might be worthwhile having a few shillings on that horse if the Brits like the colour of Endeavour plc.

[theCurse]

I live by the river No CDN dividend ETF will have any interest in EDV because of the ineligible dividends - nor dividend oriented retail investors.  I get the larger audience may counter that and then some. tC

[RONNIE111]

I make no claim to be a tax expert, but I suspect that if EDV were to pay dividends as a Canadian company , to make them eligible, it would end up having to pay corporate tax on them in Canada before the dividend were payed.  That's kind of the whole basis of the dividend tax cedit.  With EDV paying most of their corporate taxes in the countries where it has mines (which I think is a

[theCurse]

I'm not sure of the taxation details.  I do know if it means you are still paying the same amount of corporate tax, just because you are not paying it in Canada the shareholder will get less of the same pie if ineligible dividends. I have strongly maintained for years that there is NO point investing in a gold company that does not return $$$ to shareholders over the long run.  

[RONNIE111]

Yes I agree with your points. As far as the corporate tax goes, if EDV pays less corporate tax because it pays it in it's host countries (and even if it is the same tax rate I am very happy it goes to the African countries and not to Can Gov)  than it has more money left over to ,say, pay a bigger dividend.  And I don't know the numbers, but it seems a pretty large percent of

[mercedesman]

Wait until you see what Mr. Trudeau et al has in store for capital gains tax in the coming budgets. With the endless money printing (worse than any other country), you may want to rethink your return to Canada. higher taxes, and wealth taxes will eventually eat into any inflation hedge gains unfortunately. MM

[RONNIE111]

MM: I appreciate your point, but regardless of the rate at which capital gains are included as taxable income, whether it is the present 50% or if it increases to say 75%, I am still here, with EDV for hopes of big capital gain.  The 2% divi, or whatever, is nice little bonus but fairly insignificant.  I hope that EDV puts more of all the excess cash it now has into share buyback not

[mercedesman]

Ronnie I cannot deny that much of the Pandemic relief needed to be spent, for those most in need, as with all things Government I think they will eventually find that much of it was misdirected and wasted (and larger on a per capita basis than almost anywhere else in teh world). The Fed debt has doubled from $ 500B to $ 1T.  Add in teh Provincial Debts and it starts to get downright scary