Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Fooca, what is a royalty and in what format can they take?
Then I think you will find you answer your own question.
They are getting so complicated that some accountants are referring to them as revenue frameworks.
But please inform us in mining terms what a royalty to government is, what the payment is for and their various forms.
You royally guys can knock yourself out about Royalties here is the link
https://link.springer.com/chapter/10.1007/978-3-030-49821-4_4
The basis your argument is founded upon is if it is not called a royalty it is not a royalty, especially if another tax is labelled a royalty. Therefore one is and the other is not.
Enjoy your reading.
Fooca/Dazaliam, you are getting a little upset about your Leo Lithium shares no doubt.
Well hopefully your company comes out of suspension and your shares are worth something at the end - which will not matter to you as it is not a loss.
No inaccuracies about Leo Lithium readers simply have to read the RNS stream and the presentations on the Leo Lithium site together with the conditions of Ganfeng releasing funds to Leo Lithium in return for a larger share of the resource.
Nice and simple no matter how you paste it differently.
Daz, don't blame you the internet is toxic at times, look at all of the rats that keep coming out on here!
We have another free ride averaged down comment below on another share which has gone wayward, but no financial loss to them oh no, everything is great for them lol.
Read their comments on their board before the event and no hint of taking profits off the table - so either way a self confessed liar.
How many times will we hear that.
Kodal on the other hand with no mistakes so far and a pot of cash, very risky, dangers lurk everywhere.
Even when the last shareholder below is just over the fence!!! Got to laugh at them.
Fooca, accion, did not have it correct, this is their original statement that I replied to 'Regardless of whether it is or will be the Code Minier 2012, 2019 or 2023, the royalties to the state as described in the FS of Kodal or the DFS of LLL are never included in the payments that the Malian state receives through their 10%( free) or 20% or even 30% participation in the operating company.'
The 10% free are royalties, they are the main payment to central government.
Remember I am talking generically not analysing each name of each tax in each different country and then using their tax structure, that is far too complicated. Every country has different tax structures and don't use (or rarely use) the same title for each type of tax.
I am not going to look at the Mali tax structure and go through which tax generically is called what in Mali, I am not that anal.
As I previously said there are other taxes to mines globally/generically, I am happy to concede on that additional percentage, I can't be bothered to go through each tax and see which is called what in Mali that is normally called something else elsewhere, especially since it is in French.
You seem absolutely desperate to avoid your Leo Lithium investors to move over to Kodal.
Accion, not really sure what you are writing about, you seem to look for detail or words which tally with the subject in question.
Royalties (in mining to government) generically are payments to central government and payments to local government. Globally that is the norm and standard.
Paying for the privilege of digging up a country and locally some benefit for any downside, dust, traffic noise etc.
This is what the 10% ownership to central government and 5% locally is, royalties.
Everything else is a tax, even if it may have royalty in the title.
You are getting tied up in detail. Plus across the world there is different terminology which will knot you up further.
Fooca, just for others reading the post, we are talking about leo lithium it is not on AIM or this would be taken to another board.
You are disputing what is written on the leo lithium website.
I genuinely hope that the Leo Investors come out with profit still.
However just because you hope something will happen is a massive cry from a company which lists potential errors and starts making provision with tens of millions of dollars and their JV partner puts conditions on that money that the issues with the mining office are resolved.
A company does not make this level of provision for no reason, they are also taking these potential errors very seriously. The provision they have set aside is between around 30 and 60 million dollars.
A news article or your thoughts don't count for much against that evidence. If you are a shareholder in that company that is a shame. But in my opinion on this one the writing is on the wall, either losing the tax incentives, a big fine or both - the company looks resigned to the same.
Not throwing mud it is all on the company website.
Accion, you mean the local payment?
Whether Leo stays on the 2012 is central to their discussions and if they retain the tax breaks offered is why they have such large provision made for the outcome.
What was the exact total tax break they were to receive as part of the Mali government inducements? Was it 48m I can't remember.
It ran into 10s of millions anyhow, which is why their penalty to the Mali government could potentially be as high.
So at the moment you don't know which code they may fall under. Could be 2023.
I think they are hoping for a rap over the knuckles and a fine, but until it is finalised nobody knows the outcome.
Fooca,
The governments free share/stake is how they receive their royalties there is nothing else in addition.
Their right to purchase share is entirely different - but that involves a payment from the government for that share.
I hope you shareholders in Leo Lithium still make a good return on your investment.