Hey SB.
From my layman's perspective, the new code is a fantastic step forward for Mada and their desire to be recognised as a global player. We will discover more as time goes by, but I'm sure we can assume it will be a big improvement. The poor governance, moratoriums on mining licenses and certain exports (e.g. gold), lack of transparency, corruption, etc have all hindered progress for Madagascar and it's people. It appears that the new code is aimed at addressing many of the negatives.
The new code will go a long way in improving Madagascar's EITI score (see below), which will in turn enhance EVION'S ESG credentials.
As far as I am aware, the corporate tax rate is to remain at 20% (and I believe royalties are tax deductible). However, I think you are mistaken as regards the royalty rate. It is actually increasing from 2% to 5% (which can be discounted by up to 30% if products are "transformed" - albeit there's not much clarification on what "transformed" actually entails). I note our DFS had assumed the old royalty rate of 2% which will impact our numbers slightly.... but the OPEX AND CAPEX savings from the upgrades to RN10 will far outweigh this IMO.
I was obviously attracted to BEM when I first started buying shares here, but it's fair to say, I love this stock and I think the stars are close to aligning. Obviously this is my opinion and not financial advice.
Good luck to us all.
https://eiti.org/news/madagascar-achieves-fairly-low-score-eiti-implementation
Even a 5% standard royalty rate compares favourably to what other African govts impose.
