The Investment Doctor
Long/short equity, value, debt, base metals

Torex Gold: The New Mexican Mining Tax Will Be A Pain

(Editor's note: Trading in TORXF is not very liquid. Investors with access to the Toronto Stock Exchange listings can find better liquidity with TXG.TO)

Introduction

In this article I'll have a closer look at Torex Gold (OTCPK:TORXF) which is currently developing its large El Limon project on the Morelos land package in Mexico's Guerrero Gold Belt. I will provide a background of the project and will make my own calculations to determine the net present value using different inputs. Thereafter I will try to calculate what the influence of the 7.5% mining tax would be on the economics of the project.

I will also shed my light on the potential risks involved with investing in Torex, and I...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details