GLN (ASX) Ann: Galan Lithium Limited Appoints CFO

Originally posted by Smith71 ↑

RIGI has now been approved in its amended version.I have applied the potential impact of the reduced corporate tax rate to my DFS 2 model.

Assumptions:

Column 1 Column 2 Column 3

0 Carbonatprice US$ to/LCE 20000

1 Chloridfaktor 72,0%

2 Discount Rate 10%

3 Selling Price 14400

4 Royality 7% 1008

5 Net Selling Price 13392

6 Cost per Tonne 3510

I have not taken this into account Details such as "exports are exempt from export duties 3 years after joining the RIGI. This period is reduced to two years for strategic export projects."or "no VAT tax on inputs." (the new CFO should also have something to do)

As a result, the NPV improves by around US$ 150 million due to the tax reduction. Nice incentive.

Have a nice weekend
Smith71
The RIGI is included in TITLE VII of the Bases law and covers 64 articles, ranging from number 164 to 228. In total, the regime contains 12 chapters:

Creation and scope of application.

Term. Enabled subjects

Requirements and conditions for inclusion in the RIGI. Investment plan. Procedures and effects

Tax and customs incentives

Exchange rate incentives

Stability. Compatibility with other regimes. Transfers

Termination of incentives under the RIGI

Infringement and Recursive Regime Applicable to the VPU

From the enforcement authority

Jurisdiction and arbitration

Local Jurisdictions. Declaration of National Interest

Transitional provisions of the RIGI

Main aspects of RIGI
Objective: encourage large investments, promote economic development, increase exports of goods and services, promote job creation.
Minimum investment amount: US$200 million, which the PEN may increase by sector. For the assumption of investments to supply global markets in the long term, the minimum investment is US$1 billion (this would be the case, for example, of the production of liquefied gas for export).
Activities included: forest industry, tourism, infrastructure, mining, technology, steel, energy, oil and gas.
Suppliers of goods and services: they have incentives and rights over the merchandise and supplies they import to be used for services to the subjects incorporated in the RIGI.
Tax incentives: Corporate income tax rate 25% - instead of the applicable scale of approximately 35% -, on dividends 7% (after 7 years of joining the RIGI, on dividends 3.5%)
Accelerated amortization
Tax losses, updateable by IPIM and without time limit for their use. After 5 years they can be transferred to third parties.
In payments abroad for strategic export projects, a maximum of 30% will be considered as net profit from an Argentine source. If the tax is payable by the payer, the tax base will not be increased.
A special system in which the State grants tax credit certificates to RIGI subjects, so that they can use them as VAT payments to their suppliers. In short, no VAT tax on inputs.
Check tax: 100% computable as payment on account of income tax.
Imports of new capital goods, spare parts, components and merchandise for consumption: exempt from import duties, from the statistics and destination verification rate, and from any system of perception, collection, advance payment or withholding of national and/or local taxes.
Exports exempt from export duties after 3 years of joining the RIGI. For strategic export projects, it is reduced to two years.
Exchange incentives: it is not mandatory to enter or settle capital contributions or loans in the exchange market, that is, foreign currencies can be entered through CCL. Very important to the extent that there is an exchange gap. Exchange incentives are also available for exports, starting in the second year from the date of implementation. Possibly at that time all exchange restrictions will cease to exist.
Stability: for 30 years in tax, customs and exchange matters since joining the RIGI.

Expand

But doesn't the RIGI apply to $200M USD investment? That means if us shareholders pay half, we'd be up for a good $0.40 to $0.50 per share.

No.	Vol.	Price($)
25	1462582	16.0¢

No.

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Price($)

1462582

16.0¢

Price($)	Vol.	No.
17.0¢	547804	10

Price($)

Vol.

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17.0¢

547804

No.	Vol.	Price($)
24	1431332	0.160
10	1869157	0.155
19	1835101	0.150
3	366673	0.145
7	430000	0.140

No.

Vol.

Price($)

1431332

0.160

1869157

0.155

1835101

0.150

366673

0.145

430000

0.140

Price($)	Vol.	No.
0.170	547804	10
0.175	285586	5
0.180	229699	5
0.185	130000	2
0.190	24181	3

Price($)

Vol.

No.

0.170

547804

0.175

285586

0.180

229699

0.185

130000

0.190

24181

(20min delay)
Last 16.5¢		Change 0.000(0.00%)		Mkt cap ! $78.20M

Open	High	Low	Value	Volume
16.0¢	16.5¢	16.0¢	$136.4K	831.6K

Ann: Galan Lithium Limited Appoints CFO, page-64

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	Column 1	Column 2	Column 3
0	Carbonatprice US$ to/LCE	20000
1	Chloridfaktor		72,0%
2	Discount Rate		10%
3	Selling Price	14400
4	Royality	7%	1008
5	Net Selling Price	13392
6	Cost per Tonne	3510

Ann: Galan Lithium Limited Appoints CFO, page-64

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