Ann: Trading Halt, page-14

I would expect ORE to release a comprehensive announcement detailing the impact of this tax on their profits. The larger picture is that the Argentine peso has lost 50% of its value against the US dollar during the last year. One news report I read said that many agricultural and other producers being paid in US dollars are monitoring the exchange rate closely and timing their sales around drops. And it makes sense: if you pay your workers and subcontractors and suppliers in pesos, and are paid in US dollars, that 50% rise in earnings can be mostly pocketed, even if you have to raise wages at some point and the cost of your supplies etc goes up.

I would think ORE is in this sweet spot as well. If their overall production costs/wages are paid for in pesos, then they will have profited from this in the last year. This new tax is an attempt to redress this issue by taking a percentage in taxes (some reports say 7%, some say 10%).

The US dollar has increased in value against currencies like the peso, putting pressure on it. The US economy seems strong, and if it continues this way the peso will continue to sit in this devalued space. But companies like ORE should be able to easily offset the tax against $USD profits looking forward.