Torex Gold: The New Mexican Mining Tax Will Be A Pain
- Torex Gold is trading at a slight discount to the NPV of the remaining cash flows at El Limon, but the discount is too low to get excited.
- Additional value will come from the Media Luna Zone where 5.8M gold-equivalent ounces were found on 24% of the potentially 'hot' zones.
- Torex doesn't play hide-and-seek about potential security risks and has hired its own security force.
- Because of the security risks I prefer to use a discount rate of 8% vs. the 5% which was used in the feasibility study.