Does any one have thoughts as to how the mooted changes to mining royalties might effect csg.
I assume if mining went to a 40% PRRT scheme onshore O&G, plus csg would also. 40% of profits vs 10% of revenue. Would look to me like something close to an extra tax of about 20%, effectively reducing NPVs in the order of 20%.
Of course that would look like a worst case scenario, and there might be mitigation through lower corporate tax.
Even so, I am wondering whether this kind of speculation could account for csg sp knocks in the order of 10% or so?
Any one want to allay my fears?
EL
AOE Price at posting:
$3.93 Sentiment: LT Buy Disclosure: Held
