In spite of charging $207 / tone to mine the ore from the 777 Hud Bay ends up paying CAA alost $3 million after final payment.
This is absurd cost basis as the industry avg for underground is in the $65 to 70/ tone range. Seams Hud Bay has been cooking the books for years. Makes me wonder if Hud Bay might attract the CRA to scrutinize their books as well.
CRA frequently audit companys that end up in dispute because if there is a despute it indicates that both parties dont trust each other or one is pulling the wool over the others eyes.
If they won't come clean to each other, they likely are cooking the books for tax perposes as well..... Is this why Jones took leave of the company...... the sheit was about to hit the fan?