Update And Economic Analysis Of A Hypothetical Mexican Gold Mine

With the passage of Mexico's Mining Law in 1992, the tax treaty with the US in the same year, and the passage of the North American Free Trade Agreement, gold mining for non-Mexican mining companies in Mexico has changed dramatically. The statutory changes have created an opportunity for non-Mexican precious metals' producers to own 100% of a Mexican gold concession. This paper examines the financial feasibility of a hypothetical gold mine and processing plant in Mexico. The analysis includes the operational consequences of the recent weakness of the peso, as well as tax and employment issues.