Santacruz Silver Mining reports fatality at Tres Amigos mine in Bolivia
Tres Amigos mine, a part of the Caballo Blanco Group of mines, has resumed operations after it was shut down following the incident.
Canada Revenue Agency headquarters in Ottawa. (Image from archives)
Canada Revenue Agency is set to begin a fresh audit of Silver Wheaton’s (TSX:SLW) (NYSE:SLW) international transactions for the period between 2011 and 2013, the Vancouver-based miner said Wednesday.
Earlier in July 2015, the CRA sought to tax the company’s streaming income earned by its foreign units and said its taxable income should be increased by about C$715 million ($488.66 million) for the years 2005 to 2010.
Shares in the company were trading lower in both New York and Toronto this morning on the news.
Source: Google Finance.
If the announced reassessment happens, said the silver streaming company, it will further increase its estimated taxes payable in Canada by about $310 million for this period.
“We believe that we have complied with Canadian tax law and feel that the court process, rather than the CRA appeals process, will provide the most expeditious avenue for the resolution of this matter,” Randy Smallwood, President and CEO of Silver Wheaton said in a statement.
The tax dispute is unlikely to be resolved before 2017, Phil Russo, an analyst at Raymond James Financial Inc. in Toronto, said Wednesday in an e-mailed note.
“We suspect the stock will come under further downside pressure on this news. Longer term investors who can tolerate the taxation dispute should consider current levels given the fundamentals, while overshadowed today, remain strong,” Russo wrote.
Silver Wheaton’s business model involves paying an upfront fee for the right to buy all or some of a miner’s silver or gold production. Currently, about 60% of its revenue comes from silver sales; the rest is brought by gold.
Comments
ThaOracle
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