Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Natural Resource Stocks -- Ignore unavailable to you. Want to Upgrade?

To: gold$10k who wrote (1582)	10/7/2003 4:51:04 PM
From: jimsioi	Respond to of 108745

Vt , agree general market wants to go... Can not bring myself to participate with all the trouble looming out there...on "ignore" pretty obviously... Only longs are some biotech, GNTA, which isn't going anywhere....and Chinese tracker TDF which along with CHN marched along in front of the general list, making new highs..... CHN - how does one say "boom" in Chinese??? stockcharts.com[l,a]dacayiay[db][pc10!c40!c20!i!f][vc60][iLe12,26,9!Lp14,3,3!Lah12,26,9!Ll14]&pref=G

To: gold$10k who wrote (1582)	10/7/2003 6:14:05 PM
From: isopatch	Respond to of 108745

vt. <Perhaps there will be no downturn> The next Bradley pivot is due about 10/21. That would be allow ample time from here for the market to grind sideways to higher until the the bears finally capitulate and everyone gives up on a major correction in the broad markets. So, 10/22 would then come in as a high instead of the low that, until now, the majority has been anticipating. Just a thought. Iso

To: gold$10k who wrote (1582)	10/7/2003 7:48:46 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 108745

Royalty pilloried, wipes out 20m oz gold South African marxists step on their gold miners I talked about this in spring 2002 repeatedly no big surprise here / jim mips1.net JOHANNESBURG – The South African government’s proposed royalty to be levied on the country’s mining companies in 2008 could render as many as 19.2 million ounces of gold uneconomic to mine. Webber Wentzel Bowens (WWB), one of South Africa’s leading law firms, said in a stinging nine-page critique of the proposed new legislation, that the three percent revenue royalty expected to be levied on gold producers, would force mining companies to raise the average cut-off grade of the country’s gold industry from 4g/t to 4.2g/t. (The figure was provided by the Chamber of Mines) “This means that the economically recoverable reserve base would have decreased by about 3.7 percent from 16,250 tonnes to about 15,650 tonnes. In other words, some 600 tonnes of gold would have effectively been sterilized by an introduction of a three percent royalty on gross turnover,” said the firm’s regulatory law unit, which is headed by mineral law guru and ex-provincial councillor for the Democratic Party, Peter Leon. Earlier this year the government proposed royalties of 1 percent for bulk minerals, 3 percent for gold, 4 percent for platinum and 8 percent to diamonds. The final version of the bill, which will be remodeled after industry’s submissions have been taken into account, will be tabled in parliament by February. But it is not only the gold industry that will feel the pinch of the new royalties. The National Treasury, the government department that has drafted the Bill, came under fire from WWB for both the level of the royalties and its decision to base the payment on revenues rather than on profits. The criticism echoes the broader industry’s disapproval of the legislation. The law firm said that in its current form, the Royalty Bill would raise the overall tax burden on miners to an unacceptable level and stifle much needed investment in the local mining sector which accounts for 40 percent of the Johannesburg Stock Exchange. “The present version of the bill, however, takes no account of the extractor’s ability to pay the royalty, and arguably imposes a tax so burdensome that it has the effect of diminishing the value to South Africa of an industry that has been the catalyst for much of its economic growth,” said Leon in the note. Leon said government’s effort to label the royalty regime comparable to other major mining jurisdictions -- a conclusion based on a study of 34 countries -- was misleading. The WWB brief said that according to a study conducted by Dundee University’s mining policy advisory team, the government’s research had compared South Africa’s proposed royalties with “those of countries with unsuccessful or insignificant mining industries”. “The (government’s) study should have focused on countries relevant to South Africa, (that is) those with the most successful and significant mining industries,” WWB said in the brief. Canada charged a profit-based royalty and Peru and Chile did not charge royalties at all. WWB said the government had also compared royalty rates without weighing up the effects of the whole tax regime in the relevant countries. “In addition, in South Africa, the cumulative effect of the royalty with other corporate taxes and levies, must be considered alongside the unique costs faced by mining companies such as HIV-AIDS and the challenge of achieving the targets set in the mining charter,” WWB said. Another of WWB’s concerns is the state’s failure to pay any compensation for their mineral rights, which would now be owned by the state, despite an undertaking in an earlier draft of the Bill to offer the affected companies a 10-year exemption from paying royalties.