Extorre Gold now listed on NYSE/Amex
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Good news!
Dear “Big Al” —
Mr. Simpson is also the Executive Chaiman of Exeter Resource Corp (which once contained Extorre). Please ask him to update us on XRA the next time you are able to speak with him.
Thanks!
I wouldn’t mind an XRA update from the horses mouth either!
Anyone hear why this stock is down 26% today as I’m typing this. I can’t find anything on it. Thanks.
This is the cause: http://tinyurl.com/3nv4zbl
Since Extorre is not producing, there’s no revenue to repatriate yet. But this is bad news. Extreme capital controls like this can only work for a few days to weeks at best. This is a pretty bone-headed move. President Cristina Fernandez de Kirchner will hopefully face a backlash and repeal this decree and go back to the 2002 law requiring “only” 30% of revenue to be held in country. Maybe this will follow the script we saw when Australia raised royalty taxes? Who knows.
Al, please get Yale back on for his insight into this. He has deep perspective on the country and politics.
Eric Dubin
Independent Buyside analyst/manager
Thanks Eric. It’s an enormously dumb move. Argentina has to figure out why they’re losing foreign capital while most Latin American countries are gaining it. Hint: Changing the rules mid-game might have something to do with it. Quite a black swam for XG.
It’s revealing to separate S.A. countries into those with freer (yet responsible) markets, and those falling under the Hugo Chavez effect. Healthy economies always fall into the former, and collapsing ones into the latter.
That’s what I meant last week, wondering about Agentina’s political environment. Frankly, for the future, if the boom were to take a hit in Brazil, I can’t see Brazil’s watered-down communist leaders abstain from a dose of Chavezonomics, either.
Hello Al,
How ironic you had Dale Simpson of Extorre on yesterday and today Wednesday,
October 26, 2011 the stock tanked! There was no press release or anything anywhere
to explain the heavy volume today and obviously big drop. Can you say insider information? If you can provide any info today please do.
Ann
Ann,
The link Eric Dubin put up was to Bloomberg that said in part (note the word “all”) :
(Bloomberg) — Argentina ordered oil, gas and mining companies . . . to repatriate all future export revenue as the government struggles to stem accelerating capital flight from South America’s second-biggest economy.
President Cristina Fernandez de Kirchner, in her first move since winning re-election Oct. 23, changed a 2002 decree requiring companies . . . to keep at least 30 percent of their export revenue in the country.
. . .
“Extorre Gold Mines Ltd, a Vancouver-based company that explores for gold and silver in Argentina, plunged 25 percent to C$7.00 at 12:07 p.m. New York time after falling as much as 26 percent, the most in more than 18 months.
I am down 10% on EX TORE . the reports and drill results are very strong. this could be even better than endeavor which has made me a lot of money. that said they are yet to produce. Production is the real goal. looks good for a year from now.