Will Goldcorp Close Up Shop in Mexico?
In the headlines from Yahoo
Gold miners are the latest to feel the brunt of the attempt to rake in more revenues, as the government passed a 7.5% tax on profits of resources plus an additional 0.5% on precious-metals miners.
Grupo Mexico, whose subsidiary Southern Copper (NYSE: SCCO ) is the country's largest copper producer, has also said it would be "obliged" to look elsewhere for places to invest the $3.5 billion it has available.
So where does SCCO go that has not been claimed by someone else.
No improvements for Mexico is perhaps a rash judgement
Goldcorp (NYSE: GG ) has said the new tax would push its effective tax rate to more than 40%, making Mexico the highest-cost country in which to do business.
40% of a 100 total dividend gets me $60 but looks like the door will lock until the lack
of money flow breaks down the doors