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It is difficult to put much credence to a report compiled based...

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  1. 6,926 Posts.
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    It is difficult to put much credence to a report compiled based on incomplete data provided by an "advocacy group"?
    Don't read that wrong, I don't disagree there has been more annual payments made but agenda groups will rarely include all information as it just doesn't assist their goals.

    Barrick's production figures were the same for both 2022 and 2023 @ 570,000 oz.

    Barrick's financial reports don't give decisive figures (or I couldn't be arsed finding them) attributed to payments but the formula for royalties / taxes / government dividends are covered in the Establishment Agreements of their operating Malian mines. The Blood - Gold report doesn't either but estimates an increase in payments to the government (junta) for 2023 will be substantially higher to which I agree with.

    For the 2022 year, they (Blood Gold report) are quoting tax and royalty payments of US$263 million & for the first half of 2023 US$203 million (so assuming) US$406 million for the full year?

    Indeed it is a substantial increase of taxes and royalties for the 2023 year versus the previous year, but why?
    ~ The Blood Gold report doesn't include information as it (my opinion) suits its reporting agenda as I am quite sure their investigation acumen could delve deeper to find the cause of the increase if they chose to do so . . . rolleyes.png

    My opinion:
    The government own 20% of the Loulo-Gounkoto mining complex, the establishment agree breakdown is 10% is free carried (standard agreement) and the other 10% is a paid contribution (via a loan that is paid down via tax credits, etc)

    The free carried component is where the government take their royalties (6%) and dividend payments (derived from operations profits), this formula doesn't change but what does change is what the royalties are paid on, being POG.
    The average price of gold for year;
    ~ 2022, was US$1641 oz
    ~ 2023, was US$1940 oz, the price differential on gold alone added US$10.26 million to royalties (as captured in Barrick's AISC increase of US$18 oz)

    Were there levies on any licence transfers for the tenements under their expansion plans?

    The strength of the Franc versus the US$ also contributed to Barrick paying (2023) US$17 million on an adjusted tax assessment as a result.
    If I can find US$27.26 million to contribute to the increased annual payments in 2 mins, then I am sure someone that has more tenacity could find more?

    cheers



 
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