Ann: Temporary Argentina tax changes, page-65

Perhaps I’ve missed it, but it seems to me that all of the focus on the recent peso depreciation and tax increases has been trying to assess the impact on net margin. This ignores the much bigger effect on the cost of the stage 2 expansion. Much of that cost - does anyone know the proportion? - is on the pond works and so will be priced in pesos. As a result of the peso depreciation exceeding inflation, the cost of the expansion has fallen, a lot, and there’s no tax on that saving. All being well, stage 2 will start to deliver after the new tax has expired, so a win win for Orocobre.