You wrote: "A lot of knuckleheads who sold shares today(not just BRM) probably think there is going to be a 40% tax increase instead of the 6-7% it will actually end up being...if it gets up.I'm happy to capitalize on their ignorance"
I tend to agree with you that there has been an over-reaction (on BRM in particular) but there is a lot of uncertainty about the impact of the proposed tax.
The tax increase might be the 6-7% you mentioned but could be much higher for some mining companies. In BRMs case, the first few years should be OK because: 1. BRM will probably take a few years to achieve "Super Profits" and 2. Project costs can be offset against RSPT.
In any case, the regular BRM posters would agree that the market capitalisation of BRM is not even close in reflecting the NPV of the company and this will still be the case after the effect of the proposed new tax is factored in.
So, hopefully we will soon see a bounce in the share price to previous levels and (later) to a price that reflects the NPV of the Marillana project.
BRM Price at posting:
$3.25 Sentiment: Hold Disclosure: Held
