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Shorters... Good luck!, page-1086

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creamcheese

10 Posts.

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04/09/18

11:35

Post #: 35398853
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Originally posted by AvalonDays ↑

don't forget the PESO has declined 50pc in the last year. you're going to see ORE and GXY report reduced expenses relative to their original DFS reports which enhances the NPV of their projects. if you earn revenue in USD and all your expenses are in the weak local currency it is very very good for profit and thus value. I see no risk at all in that respect here. 3pc export tax on sales is very manageable for both GXY and ORE wIth the planned reduced corporate taxes plus anticipated reduction in on site ongoing expenses due the huge peso deckIne. if this does cause ORE to fall when it reopens I'm a buyer. the assets this thing owns including 50pc of adjoining Caurachi are globally significant deposits.

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Don't forget Argentina's hyperinflation, but your point still stands.

From ORE's 2018 FY report:

A substantial portion of Borax’s costs are Argentine (ARS) Peso based (~60%). For the financial year devaluation of the ARS$ against the US$ was ~73% versus inflation of ~30.0% thereby helping US$ costs to be lower for ARS denominated expenses. The effect of such devaluation was only seen towards the end of FY18 when the peso devalued substantially.

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GXY Price at posting: $2.68 Sentiment: Buy Disclosure: Not Held
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0 Great analysis

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