So, on say $1b profit, STB pay $380m tax, $3.5m royalty, plus $500m profit share to the Eritrean government.
Eritrean govt get $991.5m (or 99.15%) STB get $8.5m (or 8.5%)
In the "about STB" in all their ANN', SYB says:
"An Engineering Scoping Study for the production of 1Mt p.a. of potash demonstrated an estimated capital cost of US$0.74bn generating a Pre-tax NPV12 of US$1.33bn."
This makes me think that STB knows their tax obligations- which are in Eritrea's mining law. In some reading, some have said tax obligations ought only apply to the country where the company is domiciled. However, Nevsun- domiciled in Canada- just paid over $30m tax (plus $8m royalty- all on a 60/40 profit share- 30% + 10% free-carried).
An interesting article I found about the Eritrean govt getting Zara from Chalice for free:
http://natna.wordpress.com/eritrea-gold-for-free/
I have been watching STB's share price get smashed, and thought it would be smashed by 50%- the level of the new profit-share. It may be more than 50% to Eritrea, though, if my numbers are right. Are they wrong, holders?
STB Price at posting:
48.0¢ Sentiment: None Disclosure: Not Held