have tried to get info by googling mostly dated-there are many quotes of companies unhappy obviously and today a threat by a big producer- does anybody have any feedback as to how the actual legal proceedings work -can they compromise this tax ,can they delay this or is it pass or no pass- I am not lazy -
I had mentioned a few days ago that the Senate approved the tax. It is now solely up to the President. There are no legal proceedings as this is Mexico. I dumped at 12 and also sold exk with a one dollar gain. If it gets signed by the Prez this crashes to five bucks.
I suspect what kinks said is correct. Unemployment with royalty tax and $22/ounce is not a good recipe. Therefore, the royalty tax may not be implemented until silver price moves higher... however, I qualify that by stating that we are dealing with politicians who generally have no business sense.
That must tie into your primary holding in CDE ( yeah I read all silver miner MB's for new info a see that you post quite often).
When AG bid for Orko, they knew their primary holding was one of the world's largest silver deposits. However, they also knew the grading was low at 125g/t. When CDE overbid for Orko, the price of silver was in the high 20's. I think you've probably figured out that if the silver price moves higher, that will likely be when a royalty tax is implemented. So CDE, which has not yet demonstrated that they are a cost efficient producer,
will likely need a silver price well above $30/ounce before they begin mining plan for Orko assuming that a royalty tax will kick in then. Until that occurs, you are likely sitting on $300 million of dead money until silver price rises above $30.
marvin-did post on this board on taxation hoping to get a usefull dialogue and more info than I have been able to pull up on the computer-so thanks for that-as to preciosa and new management I say Phillips and kennedy have more than enough experience in building mines than ag-not to be contentious I think first majestic has little experience building this type of mine-rehabbing high grade a far cry from building this-and furthermore 26 years at rochestor qualifies as low low grade for cde ---Mitchell from taseko and hanagarne fron Newmont round out new team-Phillips was responsible for paas/orko jv he knows this deposit and has reputation as on time on budget and had several buids in mexico the argentina and straightened oupiquitas and was on line to build pitallia-I am not in any way running ag down but del toro is a ag first, all those other mines were small high grade rehabs-and again cde only used 100mill cash the rest shares and still has about 15% less shares than first majestic along with 250mill cash-I am now about to buy hl because of mexico mining law--would enjoy further discussion as I have followed ag for years and think the company has been in a sweet spot and firing on all cylinders-respect ed