Higher metal prices mean miners will give more desperately needed tax to state
Royalty payments are estimated to climb 70% this year for listed miners covered by Morgan Stanley, while tax payments could lift as much as 80%
02 August 2019 - 11:38
SA’s platinum and iron ore producers will generate additional tax revenues for the nation’s cash-strapped government as a rally in metal prices buoys their earnings, according to Morgan Stanley.
Royalty payments are estimated to climb 70% this year for the listed mining companies covered by the bank, while tax payments could increase by as much as 80%, Morgan Stanley analysts including Christopher Nicholson said in a note. Miners such as Anglo American Platinum and Kumba Iron Ore are reaping windfall profits from higher palladium, rhodium and iron ore prices, while a weaker rand lowers their costs...
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