Ann: Bawdwin - A World Class Silver Project Presentation, page-163

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ChrisSydney1984

364 Posts.

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19/08/20

16:47

Post #: 46663309
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Originally posted by ozbucheron: ↑

@Kalenn

I believe that income tax applies in addition to the production sharing and royalties.

From page 26 of the PFS summary...
The Bawdwin Mineral Concession operates under a Production Sharing Agreement (PSA). Under the PSA ‘dead rent’ is payable during the pre-production period and over the life of the Starter Pit (approximately US$0.04 million per annum). Mineral taxation (or royalty) and production sharing taxation is also levied. Over the life of the Starter Pit US$ 164 million would be payable in royalties and US$ 1,278 million in production sharing taxation. The PFS financial model is pre-finance and pre-corporate taxation. Corporate taxation in Myanmar is a flat 25% rate. A periodic corporate ‘tax holiday’ can be granted for investments in strategic sectors and, or regions within Myanmar. BJV may be eligible to apply for a corporate tax holiday with respect to the Bawdwin project.

Looking through the broker valuations on the MYL website shows income tax being imposed.

A search of the web only revealed details of oil and gas PSAs. In these income tax is imposed in addition.

When MYL repatriates earnings will there be an additional 5% corporate tax to bring it up to the Australian rate?

Does anyone know how the ATO views a foreign tax holiday when funds are repatriated?

Agree with the comment about opex not being a straight percentage of revenue.

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I just used the PFS metrics get the loose operation cost metric of ~45% of Rev: 2665/5891= 0.452384 = ~45%.

My Revenue is much higher than the PFS though when I input the projected metal recovery for each year of Starter Pit:

Last edited by ChrisSydney1984: 19/08/20

MYL Price at posting: 10.5¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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