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Wheaton Reaches Tax Settlement With Canadian Authorities

Kitco News

Wheaton Precious Metals says it has settled a tax dispute with the Canada Revenue Agency related to transfer-pricing rules for the 2005-2010 period for income generated by its wholly owned foreign subsidies. Foreign income on earnings generated by Wheaton International will not be subject to tax in Canada, the company says. However, a service fee charged by Wheaton for the services provided to Wheaton International will be adjusted to  include capital-raising costs associated with Wheaton for the purpose of funding streaming transactions entered into by Wheaton International and to increase the mark-up applied to Wheaton’s cost of providing services to Wheaton International. The additional service fee will result in increased Wheaton income subject to Canadian taxes, the company says. The transfer-pricing principles will apply to years after 2010, including the 2011 to 2015 tax years that are currently under audit, the company says. “The terms of the settlement are an excellent outcome for Wheaton and its shareholders,” says Randy Smallwood, Wheaton’s president and chief executive officer. Credit Suisse issued a report calling the settlement “an early Christmas gift” for Wheaton. “We expect the stock to react positively to the news given the tax dispute was an overhang and was expected to be resolved during the September 2019 trial,” Credit Suisse says.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Coeur Mining Names New CFO

Friday December 14, 2018 08:23

Coeur Mining, Inc. (NYSE: CDE) reports that Thomas S. Whelan has been named senior vice president and chief financial officer, effective Jan. He succeeds Peter C. Mitchell, who is retiring. Whelan was CFO of Arizona Mining and has a background in accounting, capital markets, risk management, financial planning, tax, management and strategy, along with knowledge of the metals and mining industry, Coeur says. “Tom brings over 25 years of financial, operational and strategic experience that make him the ideal choice for the role,” says Mitchell J. Krebs, president and chief executive officer. Coeur also announces that Terry F.D. Smith has been named senior vice president of operations after having previously been vice president of North American operations. “He has been instrumental to our efforts to optimize and reposition our asset portfolio since joining Coeur in 2013 and is deserving of this expanded role,” Krebs says.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Alamos: Two Employees Missing After Mine Accident In Mexico

Friday December 14, 2018 08:23

Alamos Gold Inc. (TSX, NYSE: AGI) reports that two employees and missing and presumed dead after an accident Thursday at the Mulatos Mine in Mexico. The incident involved an unexpected pit slope movement in the El Salto area of the open, pit where pre-stripping activities were being conducted, the company says. Alamos is investigating the accident and has notified the authorities, the company says. “We are profoundly saddened by this accident. The safety of our employees is our highest priority and the loss of these two individuals is a shock to us all,” says John A. McCluskey, president and chief executive officer.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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