While you're "considering more detail", you should probably...

While you're "considering more detail", you should probably consider the following:

1. Rincon Stage 1 remain does not qualify as a single purpose vehicle (SPV) under the RIGI framework, because it hasn't attracted >US$200m in investment. Therefore Puna Mining will remain subject to a 35% corporate income tax rate on all earnings, plus a 5% royalty rate, until such time as AGY can attract over US$200m in investment (US$5m down from ATL, just another US$195m to go now).



2. If AGY actually followed a conventional path by completing and submitting a feasibility study, they would have received a 30-year fiscal stability certificate from the Argentinian Government. This would have ensured that Puna Mining wouldn't have been subject to a tax rate greater than 30% (among other benefits). But because JZ wanted to take an unconventional approach, a 35% tax rate now applies for the foreseeable future, with the added kick in the guts of the royalty rate being increased to 5%. That's a double fail.



3. By the time AGY attracts over US$200 million in investment to proceed with Stage 3 and qualify for RIGI, they will have accumulated significant income tax credits due to their substantial CAPEX investment. Once Stage 3 is initiated, it is unlikely they will pay income tax until well into the 2030s. Therefore, in any scenario, the net result for AGY is negative for at least the next 5-10 years. After completing Stage 3 and generating enough income to offset the CAPEX investment, AGY will finally be in a position to benefit from a lower tax rate. IMO, this likely won't happen until the mid-2030s though. Given Argentina's political volatility, there's a significant chance that a socialist regime could return to power by then and potentially increase tax rates again.

4. In the PEA, AGY were already anticipating a corporate income tax rate of 25% and a royalty rate of 3%. Therefore even in the best case scenario where AGY can attract the necessary strategic investment, and RIGI makes it through the Argentinian Senate, they'll still be in a worse situation than they anticipated by paying the expected 25% income tax rate plus the 5% increased royalty rate.

DYOR.............