Mexico's Increased Mining Royalties Could Deter $7 Billion In Foreign Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 22 2024
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Source: Benzinga
Proposed Tax Increases: The Mexican Ministry of Finance has proposed raising mining royalties in the 2025 federal budget, increasing the special tax on mining profits from 7.5% to 8.5% and the extraordinary tax on precious metal sales from 0.5% to 1%, citing rising global metal prices.
Impact on Mining Sector: While the increased taxes aim to generate more revenue for government programs, industry experts warn that they could deter nearly $7 billion in investments by 2025, potentially making Mexico less competitive compared to other mining-friendly countries like Chile, Peru, and Canada.
Analyst Views on EWW
Wall Street analysts forecast EWW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EWW is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 75.360
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
