A week after Zambia’s Revenue Authority gave First Quantum Minerals a US$7.9-billion tax bill, analysts are predicting a significant settlement.
Although major markets saw some significant losses on Friday, Monday morning was a breath of fresh air as the indexes made their way back to green.
The company’s share price took a hit after being handed the bill by the Zambian Revenue Authority on Tuesday. Other miners will now face audits.
While the major markets wavered in anticipation of the US Federal Reserve’s meeting, commodities picked up speed and recovered from recent losses.
Following a controversial discovery about a prominent mining company, Zambia is doing tax audits on other miners dating back six years.
While American markets closed in the red on Tuesday, they bounced back to green with their Canadian counterparts on Wednesday morning.
Last week’s other top-gaining mining stocks on the TSX were LeadFX, Nautilus Minerals, Dalradian Resources and Excelsior Mining.
First Quantum Minerals is on track to expand copper capacity at the asset by 15 percent by 2020. Output will reach 85 million tonnes per year.
Nickel surged more than 8 percent to become last week’s best-performing metal, but will the rally continue? Many experts say the answer is yes.
Northern Dynasty Minerals Ltd. (TSX:NDM,NYSEAMERICAN:NAK) announced that Pebble Limited Partnership, its wholly owned subsidiary, will file for a US Clean Water Act 404 permit on December 22. Filing for the permit will initiate federal and state permitting for the company’s Pebble project.
A potential deal could see First Quantum acquire the option to pay US$1.35 billion for a 50-percent stake in Northern Dynasty’s Pebble project.