Tuesday, July 29, 2025
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
New mining service fee. Ecuador implemented a new mining service fee, Tasa de Fiscalizacion Minera (TASA), on the resource sector. Aurania received notice of the fee associated with its project in Ecuador. The Ecuadorian Control and Regulation Agency (ARCOM) has requested payment of US$2,012,618 by July 31, 2025, representing one month of the total annual fee of US$24,151,420, to help fund ARCOM’s efforts. Because we do not anticipate significant negative repercussions associated with deferring payment, we think Aurania will withhold payment until it becomes clear whether TASA will stand in its current form.
TASA is being challenged. The new fee represents a significant cost burden for junior exploration companies. Multiple constitutional challenges have been filed in Ecuador and are being analyzed by the Court to determine if the claims will be accepted, which could take several months. If accepted, the constitutional challenges could take several years, and ARCOM may or may not be directed to suspend the collection of fees until claims are resolved. Reasonable accommodations will likely need to be made.
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