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1 Argentine Peso equals 0.026 United States Dollar ORE sells in...

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Nanday

484 Posts.

83

04/09/18

10:20

Post #: 35395364
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Originally posted by Nanday ↑

"Almost all the increased revenue needed to eliminate the deficit will come from an export tax of 4 pesos per dollar on agricultural exports and 3 pesos per dollar on other goods shipped internationally, Dujovne said."

So 3 pesos per dollar apparently. I doubt it will impact much on ORE's profits, but it flags the intention of a government in crisis to do what it will do to fix the economic crisis in Argentina. I think it's that - the initial flagging of intent to raise taxes - that has spooked the market and will drive down ORE's shareprice - not the 3 pesos per dollar. Sovereign risk, it's always a problem and not just in some countries. Even in Australia there is always the potential for new tax imposition. Sadly, this will give the shorters ammunition to dive in again.

It's good to see that ORE has halted trading and hopefully we will see an announcement with projected impact on profits. Not that it will stop the drop in share price as panicked sellers leave, which I expect to see when trading resumes. Or the shorters.

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1 Argentine Peso equals
0.026 United States Dollar

ORE sells in US dollars, so the new tax burden is .078 cents on every export dollar. So now we wait to see for ORE's announcement to confirm this and explain the overall impact on their business.

ORE Price at posting: $4.16 Sentiment: Hold Disclosure: Held
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1 Argentine Peso equals 0.026 United States Dollar ORE sells in...

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