re: Ann: Significant Drilling Intersections a...
The new higher tax regime in Ghana is holding this one back, and has hurt PRU, EVR and AZM.
Company tax rate increased from 25% to 35%. Ghana govt also has a 10% free carried interest in the project plus the right to acquire another 10% "on fair terms", whatever that may mean in the fullness of time.
Ghana also changed the depreciation provisions from the reducing balance formula to a 5 year straight line annual depreciation rate (ie 20% pa). The reducing balance formula means you get to recover your capital costs a lot earlier and gives you more cash on hand for other projects earlier.
There was also some talk about introducing a super profits tax, but this has not yet got up.
Other than that I like PVM.
loki
PVM Price at posting:
82.5¢ Sentiment: None Disclosure: Not Held
