Sulliden Gold Corporation Ltd T.SUE.WT

Peru Mining ...its all good !

[sthgal]

from Canaccord "Morning Coffee" today
Peru Mining

It's all good. Shares of mining companies with Peruvian operations got a boost after Pedro Martinez, President of the National Society of Mining, Petroleum & Energy, commented that president-elect Ollanta Humala will meet with mining companies to discuss a windfall tax. According to the article, representatives will meet with Humala’s advisors to reach a solution that will not make Peru less competitive. "We must be very careful with tax policy as the key for investors is confidence," Martinez told reporters in Lima. "If we don’t send clear signals to investors that this growth model will continue, we’ll be shooting ourselves

in the foot." Separately, a strike by miners in Peru has been averted as Congress in Peru enacted a law, which will create an additional retirement fund for miners. The bill will be funded by a 0.5% levy on workers payroll and another 0.5% on corporate profits. Miners had threatened to strike if the bill was not passed.

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Thanks for the post. Gotta love this "that will not make Peru less competitive"...plus its a negotiation....not an our way or the highway. This certainly taxes some of the Peru risk off the table. And I would say essentially eliminates that dirty word nationalization that some where whispering about....And its much better then certain countries that are 

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I should also state how this impacted our SP.In the days leading up to the election results, when it looked like Humalta had gained a slight lead...we fell from 2.50 to 2.20. When the election results where announced we gapped down from 2.20 to 1.90. So we basically lost 30% of our value becaues of political risk. When this risk is off the table what will happend to the SP? Hopefully this is the