Regent is not concerned about outright nationalization and thinks the tax situation should stay in check as long as governments are open to working with the industry.
Silver Standard (SSRI) has one operating mine in Argentina and is prepping for higher taxes and a potential export tax. "There is always going to be a tension as countries try to deal with their debt issues we will help them pay for that," says CEO John Smith, but "I believe that we are paying more than our fair share and we're committed to spending that locally with the people around our mine and with the federal government."
The company has a fiscal agreement with the current regime which could be in jeopardy following the presidential and legislative elections in late October, especially if the new leaders implement a tax on Argentina's $4.5 billion export industry. "Anything more than
Silver Standard is particularly vulnerable to higher taxes because it only operates one mine. The company has a plethora of projects in Mexico and Peru but those mines won't be in full-blown production mode until 2015.Two companies that are relatively protected from the threat of nationalization are Silver Wheaton (SLW) and Royal Gold (RGLD). As royalty companies, they give money to miners in exchange for gold or silver but carry no production and execution risk.
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>To contact the writer of this article, click here: Alix Steel. >To follow the writer on Twitter, go to http://twitter.com/adsteel.
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