Member Info for BellaStar

For me all is obvious. At the start of 2023 they were in some crisis due to a tax case. But they changed local management and made a highly efficient turnaroud by year end - won this case, launched the dragline and made significant volumes of ground stipping when it was impossible to mine product, so as not to create the basis for an inflated extraction tax (it was about 23%, now it's 6%). When all problems were solved, they brought in a new CEO from the locals (he's local, this is seen from his Tax ID - 66 ... means Sverdlovsk region), and sold part of the concentrate. On my estimates, based on the incoming cash, this is about 35-40%. It was done to ensure functioning independently on London, since there are problems with financing from abroad. They need to defrost the mining, since the equipment cannot stand. They also need to show efficiency in production, as this is a strong point in the sale process now.

Sanctions stimulate, idiocy amuses

If they focus on BRICS they should find another primary platform for trading stocks. more friendly or at least neutral in common. Dubai, or Kazakhstan (as Polymetal did), or at least Hong Kong. In London they will not find fair estimations on market in the near and even long term.

I estimate WK alone is worth at least £500 mil., simply based on its current production capacity (and this without Travianaia). Sure that the board will show some actions within the next 6-10 weeks. However, a direct sale is the worst solution now, since no one will buy assets in this region without a big discount. I feel they may find a more interesting solution.

Thanks to this euphoria of economically unjustified actions russian assets are now likely to be sold quickly and for a not a big price. I think no more than 150 million pounds.

WK is fully equipped and ready to begin production. If they resume even a small production this year, it will be super positive.

Definitely deforesting and groud stripping with the dragline. Good job done by the site managers.

Nothing strange for me here, this is just ground stripping by the dragline and deforesting. It was intelligent to keep on stripping, when it was better not to continue mining until the tax case was closed.

Imho since this affected approx. 10-12 production months of 2021-2022, within 3-4 months the tax authority will return in equiv. from 350 to 600 k ps of overpaid taxes, sanciotns and interest. The first some delivery (according to the ruling re Aug 2021 50-60 k ps) of returns should be in January. And all these extraction taxes will not be so large in all subsequent years .

Https://www-kommersant-ru.translate.goog/doc/6426511?_x_tr_sl=ru&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=wapp

Release from the lawyer.

https://www.pgplaw.com/news/yuristy-pepelyaev-grupp-zashchitili-interesy-klienta-v-vs-rf-v-ramkakh-spora-o-ndpi-pri-dobyche-zolo/

According to the Tax Code, entities which mine concentrates and other semi-products containing gold pay the mineral extraction tax at a rate of 6%. They also cannot accept a rental coefficient of 3.5. ... Therefore, the tax authorities’ approach was illegal, the Supreme Court decided. He overturned the decisions of the lower courts and satisfied the claim of Kosvinsky Stone, recognizing the decision of the interdistrict tax service as invalid.

https://pravo.ru/news/250365/

"In this case, the legislator defined the conditions for taxation of entities engaged in the extraction of concentrates and other semi-products bearing gold, providing for the application of the mineral extraction tax for this category of payers tax rate of 6 percent (Clause 2 of Article 342 of the Tax Code of Russia), as well as excluding for them the use of a rental coefficient, which has a corrective value, in the amount of 3.5 (Clause 6 of Article 342 of the Tax Code of Russia)."

Https://kad.arbitr.ru/Document/Pdf/98cfa775-14d4-4f61-866c-923ebd5d0b62/4cf4fc78-70e0-4081-aca1-b1981ff6d6ec/A60-42662-2022_20231221_Opredelenie.pdf?isAddStamp=True

The text of the ruling on the extraction tax case has been uploaded. 6% for gold-bearing concentrate from the sum calculated on the mass and market prices for metals in the concentrate less refining and delivery costs.

https://kad.arbitr.ru/Document/Pdf/98cfa775-14d4-4f61-866c-923ebd5d0b62/4cf4fc78-70e0-4081-aca1-b1981ff6d6ec/A60-42662-2022_20231221_Opredelenie.pdf?isAddStamp=True

Most likely today it will be a full text of Russian Supreme Court's ruling about the mining taxation. Yesterday evening a notice appeared on their website about the readiness of the ruling. But the text has not been yet uploaded.

It's an official brief resolution (resolutive part) for now. The claim of ZAO "Kosvinsky Stone" must be satisfied. Invalidate the decision of the Interdistrict Inspectorate of the Federal Tax Service No. 14 for the Sverdlovsk Region dated March 29, 2022 No. 573 on bringing to justice for committing a tax offense.

The ruling on KK tax case is publicated https://kad.arbitr.ru/Document/Pdf/98cfa775-14d4-4f61-866c-923ebd5d0b62/219f4629-cd2a-4251-a062-66401a2192b8/A60-42662-2022_20231213_Prochie_sudebnye_dokumenty.pdf?isAddStamp=True

So the new information about yesterday tax win of KK

https://www-pgplaw-ru.translate.goog/news/press-releases/yuristy-pepelyaev-grupp-zashchitili-interesy-klienta-v-vs-rf-v-ramkakh-spora-o-ndpi-pri-dobyche-zolo/?ysclid=lq5asnupmg191435909&_x_tr_sl=ru&_x_tr_tl=en&_x_tr_hl=ru&_x_tr_pto=wapp

New proof, a release from the external lawyer of KK

https://www.pgplaw.ru/news/press-releases/yuristy-pepelyaev-grupp-zashchitili-interesy-klienta-v-vs-rf-v-ramkakh-spora-o-ndpi-pri-dobyche-zolo/?ysclid=lq5asnupmg191435909