Gwaihir,Rising Gold Prices takes care of all this.Do the math.It...

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geko123

1,346 Posts.

23

05/03/20

10:25

Post #: 43316380
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Originally posted by Gwaihir: ↑

I'm a bit surprised by this stock and the Tanzanian government taxation levels.

Effectively, there seems to be 3 taxes.
1. (Tax 1) Free Carried 16% to the Tanzanian govt.
2. (Tax 2) 7.3% Royalty tax to the Tanzanian govt.
3. (Tax 3) 30% tax on production to the Tanzanian govt.

I make the total taxes as 53.3%, so effectively, ORR only makes a proportion of 46.7% of the project.
It looks like they have been taxed out of business, and they won't even keep a majority financial stake, but just 46.7%. This is diabolical.

So is it actually worth developing the mine, or not ?

I would have thought that the combined total of the 3 taxes reaching 30% to 35% would have been fair, but at 53.3% it's simply a total abuse of power by the government, and removes most incentives to mine in the country.

Not only that, but for their 53.3% taxation stake, the Tanzanian government don't seem to have to do anything, or pay anything.

Are ORR expected to raise the $300 million for construction by themselves, and then only be effectively given a 46.7% slice of the project. After they did all the exploration, and costs, and raise all the capital, and then do all the building of the mine, and then run and administer the mine, as well as giving millions of dollars to the local communities - it seems like a joke, or a complete corrupt rort on the part of the Tanzanian government. They can keep their gold, and their taxes, I wouldn't be going anywhere near them.

Gw

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Gwaihir,

Rising Gold Prices takes care of all this.
Do the math.
It is a very attractive project.

I am in and not going anywhere.
Geko

ORR Price at posting: 40.0¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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