MARKET TALK: Reworked Mining Tax Eases Value Impact - Citi

5th Jul 2010 02:29

0129 GMT [Dow Jones] Changes to Australia's proposed new mining tax have made it much less damaging for miners, but junior iron ore and coal stocks are still losers, Citi says. Says the impact of the reworked tax on the net present value of BHP Billiton (BHP.AU) and Rio Tinto (RIO.AU) is 1%-3% whereas the original proposal resulted in a 12% hit. For coal producers the impact falls to 5%-8% from 15%-20% and for Fortescue Metals (FMG.AU) it drops to about 2% from 25%. Says biggest winners are gold and base metals producers and Energy Resources of Australia (ERA.AU), which are all now excluded from the reworked tax. Losers are iron ore and coal juniors still in the ramp up phase and exploration focused companies which have lost the exploration rebate. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 04, 2010 21:29 ET (01:29 GMT)