Quote:
Originally Posted by Hockeyguy15
So just reviewing the royalties will cost us jobs? Even if they don't change anything at this time?
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Yes! When planning large scale capex, you have to have a good idea of what the royalties are going to cost. The margins on many projects right now are slim-to-none as it is; if there is any uncertainty over the royalty rates that will affect profitabilty of the projects X year life (15-50), how can you make the case to your management/CEO to invest in the project?
It is not just raising royalty rates that will kill investment, the review and uncertainty which will impact every capital project will absolutely kill investment. No capex will hurt construction, electricians, service providers etc. and they will feel immediate impact.