Size Matters

Jody Chudley

This post Size Matters appeared first on Daily Reckoning.

Let me shed some light on where the greatest stock market returns are generated.

Over the last 90 years, the market’s smallest stocks with market caps averaging just $114 million have been the best performers with an incredible 17.45% annualized rate of return.

Compare this to the market’s largest stocks, with an average market cap of $88 billion, that have returned just 9.21% annually.

The reason for this outperformance is simple…

Institutional investors cannot fish in this pond. The companies are too small for them to invest any meaningful amount of cash and therefore bargain opportunities are able to exist.

This is where the market is inefficient.

The data is screaming to us that small-cap companies are an ideal place to find great equity investments. So let’s do exactly that.

Growth At A Bargain Price — Ashford Inc. (AINC)

Ashford Inc. (AINC) provides asset management services to two NYSE listed real estate investment trusts, Ashford Hospitality Trust (AHT) and Ashford Hospitality Prime (AHP).

With a market capitalization that has been hovering around $200 million, this is just the kind of under-the-radar business that outperforms over the long-term.

The first REIT, Ashford Hospitality Trust, invests in full-service and upper-upscale hotels in diversified markets. In total it has 120 hotels and 25,000 plus rooms. The second REIT, Ashford Hospitality Prime, focuses on luxury hotels and resorts covering 12 hotels and 3,600 rooms.

Combined, these two REITs operate 132 hotels and have $7.5 billion on total gross assets that Ashford Inc. is in charge of managing.

As the asset manager, Ashford Inc. gets paid a management fee from the two REITs. That fee is based on the $7.5 billion in gross assets that these REITs have. As the REITs grow their assets, so too grows the management fee that Ashford Inc. collects.

Historically that growth has been excellent.

I’m talking about a compounded annual growth rate of over 25% since 2003. Yes, that rate includes the financial crisis and is something that I expect to continue.

But there is more to the story…

As the manager of all of these hotels, Ashford Inc. effectively controls how those hotels spend billions of dollars every year.

Not surprisingly then, Ashford Inc. has invested in a few businesses that provide services to hotels. For example, Ashford Inc. purchased J&S Audio Visual which is a company that provides audio visual services for hotel conventions, conferences and business meetings.

I know of at least 132 hotels that are going to be customers of J&S Audio…

Similarly, Ashford Inc. made an investment in a company called Pure Rooms, which is in the business of making hotel rooms hypoallergenic for $30 per night.

You can bet there will be additional opportunities to capitalize on servicing hotels down the road. This will add more growth to the management fee growth that has been compounding at more than 25 percent per year for 15 years.

Great Balance Sheet + Incentivized Insiders At An Attractive Valuation

In addition to having a rapidly growing asset management business and opportunities to cross-sell services, Ashford has three other very attractive features.

The first is the balance sheet. As of the end of December 2017, Ashford was in a strong financial position with the company sitting on $40 million of cash while having zero debt.

The second is that insiders are highly incentivized to build shareholder wealth.

I’m a huge believer in the power of proper incentivization and Ashford’s insiders own three times more shares than the average of its peer group.

The third is an attractive valuation. Ashford Inc. trades for 8 times EBITDA (earnings before interest taxes depreciation and amortization). Meanwhile, the most comparable publicly traded competitor, RMR Group (RMR), trades at 15 times EBITDA — almost twice the valuation!

Not surprisingly, RMR’s market capitalization is almost ten times that of Ashford and institutional investors have been attracted to the RMR story. As Ashford continues to grow, I expect that institutional investors will move in here as well and Ashford’s valuation multiple will increase.

For now this is a high quality small company available at a discounted price.

Here’s to looking through the windshield,

Jody Chudley
Financial Analyst, The Daily Edge
EdgeFeedback@AgoraFinancial.com

The post Size Matters appeared first on Daily Reckoning.

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Lucapa finds yet another large diamond in Angola

Lucapa finds yet another large diamond in Angola

Australia’s Lucapa Diamond (ASX:LOM) has discovered yet another large diamond at its prolific Lulo mine in Angola — a 46-carat pink stone, the largest coloured gem-quality rock ever recovered there.

The company said the gem-quality coloured diamond eclipsed both the 43-carat yellow gem found in January and the almost 39-carat pink dug up in September last year.

“The frequent recovery of large and premium-value diamonds from new areas along the Cacuilo river valley continues to illustrate the uniqueness and potential of the Lulo concession,” the miner said in the statement.

The 46-carta pink is the largest coloured diamond found at Lulo to date

It’s been a good year for Lucapa so far, with the company fetching $1.7 million (A$2.1 million) in March from selling its Lulo findings.

The project, located 150km from Alrosa’s Catoca mine, the world’s fourth largest diamond mine, hosts type-2a diamonds which account for less than 1% of global supply.

Lucapa has a 35-year license for Lulo, which early last year bore a 404.2-carat white diamond, considered the largest diamond ever recovered in Angola and the biggest diamond ever found by an Australian company.

It also holds a 70% interest in the Lesotho-based Mothae project, located within 5 km of Gem Diamonds’ (LON:GEMD) Letšeng mine, which in February yielded a 910-carat rock, the fifth biggest gem-quality diamond ever found.

Angola is the world’s No.4 diamond producer by value and No.6 by volume. Its industry, which began a century ago under Portuguese colonial rule, is successfully emerging from a long period of difficulty as a result of a civil war that ended in 2002.

This diamond eclipses both the 43-carat yellow gem found in January and the almost 39-carat pink dug up in September last year. (Image courtesy of Lucapa Diamond.)

The post Lucapa finds yet another large diamond in Angola appeared first on MINING.com.

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S. Africa gold miners, workers reach settlement in historic silicosis case

South African gold producers signed Thursday a class action settlement with law firms representing thousands of miners who contracted the fatal lung diseases silicosis and tuberculosis while working for them, the parties said.

The 5 billion rand-settlement (about $395 million at today’s exchange rate) puts an end to the country’s largest and most expensive class action ever against mining companies. The suit, first filed in 2012 was allowed to proceed in 2016, in a historic decision of South Africa’s High Court.

The out-of-court settlement puts an end to the country’s largest and most expensive class action ever against mining companies.

The document was signed by Richard Spoor Inc, Abrahams Kiewitz Inc and the Legal Resources Centre, representing the affected workers, and the Occupational Lung Disease Working Group, which acted on behalf of African Rainbow Minerals, Anglo American, AngloGold Ashanti, Gold Fields, Harmony Gold and Sibanye-Stillwater.

The parties said they believed an out-of-court settlement was far preferable everyone than an inevitably lengthy and expensive litigation process. They noted this option would allow claimants to receive compensation and relief for their conditions more quickly.

The settlement, however, needs approval by the Johannesburg High Court before it can be implemented.

Most claimants are black miners from South Africa and neighbouring countries such as Lesotho, whom critics say were not provided with adequate protection during and even after the Apartheid ended in 1994.

The claims go back decades, which explains why Anglo American, which no longer has any interests in gold mining, and ARM, which no longer operates gold mines in South Africa, were named in the suit.

Research indicates the miners caught silicosis, which has no known cure, from inhaling silica dust while drilling rock. The dust lodges in the lungs and causes permanent scars.

Symptoms include persistent coughing and shortness of breath, and the disease regularly leads to tuberculosis and death.

The post S. Africa gold miners, workers reach settlement in historic silicosis case appeared first on MINING.com.

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American Pacific Mining Drilling Tuscarora Gold Project

American Pacific's Tuscarora Project

Source: Bob Moriarty for Streetwise Reports 05/03/2018

Bob Moriarty of 321 Gold profiles a company that has taken over a high-grade gold exploration project from Novo Resources.

In 2014 my favorite gold junior, Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX), did a deal on a small project in Nevada named Tuscarora with some barn burning historic results. Naturally since the main focus was on Western Australia in 2016 when Novo announced high-grade bonanza results such as 143.5 g/t over 1.52 meters, the market only yawned.

Novo didn’t pay much for the project and since it took attention and resources away from their primary focus, when the opportunity came up to vend it into a new junior and recover 100% of their costs, Quinton took it. In November of 2017 announced a deal with American Pacific Mining Corp. (USGD:CSE).

The terms call for American Pacific to pay Novo $375,000 and to issue $200,000 worth of shares spread over three years and to expend $100,000 each year in exploration. There was an existing 2-4% NSR on the 24 unpatented mining claims in Elko County. Novo added an additional 0.5% payable to themselves.

It’s always nice to drill a home run hole with 143.5 g/t gold grade but even better when you can pick up such a project essentially for peanuts after someone else already found the vein system for you. In 1995 Quinton Hennigh was working for Newcrest when they drilled the Navajo vein at Tuscarora. They reported 30 g/t gold for 1.5 meters, 182 g/t gold at 1.5 meters and 51 g/t gold at 1.5 meters. In the East Pediment vein Newcrest reported 28.2 g/t Au for three meters and 4.6 g/t Ai for 1.5 meters.

When Novo drilled in 2016 they hit the bonanza hit of 143.5 g/t over 1.5 meters and 21.5 g/t Au over 1.5 meters. American Pacific got their drill permit for Tuscarora on the 17th of April and began phase 1 of a planned 19 hole program as the drills began turning. Their plan is to complete 10-12 holes, check the results when the assays come in and then complete the program.

American Pacific's Tuscarora Project

We know from past results from both Newcrest and Novo that there are multiple bonanza grade veins at Tuscarora. Novo didn’t have the bandwidth to focus on the project. American Pacific has three million dollars in the bank and can focus. When results come in, I expect a revaluation of the shares.

As of now the company has a market cap of about $10 million CAD. There are warrants outstanding at $0.35 that can be accelerated at $0.50 that will bring in enough money for a follow up drill program.

If you think gold mining companies have value and will go up as gold goes up, American Pacific is a really easy to understand story. It’s a Quinton Hennigh project with 23 years of his thinking about it. Novo didn’t have the bandwidth to do Tuscarora right so they vended it to a new company run by people Quinton is comfortable with. They know where the veins are, they need to define a minable resource and either vend it out to a major or mid-tier or put it into production themselves.

American Pacific's Tuscarora Project

With another 5,000 meters of drilling planned I would expect American Pacific to start planning on a 43-101 resource. They need 1-2 million of a high-grade resource to be taken seriously and frankly I wouldn’t even guess what they might have. But when you are dealing with 1.5 meters width of ounce-plus material you can figure out the strike length and depth and do a back of the envelope calculation.

Look for results to start coming out in six weeks or so. The stock could be explosive especially if the summer rally has started.

American Pacific is an advertiser and I have participated in two private placements. I know the management well and like them a lot. They did a good deal on the project and are in a perfect position to move this significantly forward. I am biased so do your own due diligence.

American Pacific Mining
USGD-C $0.355 (May 03, 2018)
USGDF-OTCBB 32.6 million shares
American Pacific website.

Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: American Pacific and Novo Resources. American Pacific and Novo Resources advertisers on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or …read more

Yamana exceeds gold production plans in Q1

Yamana Gold (TSX:YRI)(NYSE:AUY) announced today that gold production exceeded its plan for the first quarter of 2018.

In a media statement, management detailed that gold equivalent ounce production from Yamana mines for the first quarter was 211,246, including 199,555 ounces of gold and 899,261 ounces of silver. Total attributable gold production was 248,088 ounces of gold, including attributable production from Gualcamayo in Argentina and Brio Gold in Brazil.

The company said that it also produced 30.4 million pounds of copper.

Given these results, the Toronto-based miner expects to stay in line with its 900,000 ounces production guidance for 2018, while delivering 47 per cent of total gold production and 46 per cent of total copper production in the first half of the year.

These predictions -the firm explained in the media brief- do not take into account production at Cerro Moro, Yamana’s newest gold-silver project in the southern Argentinian province of Santa Cruz. The mine’s first doré is expected this May while it is anticipated that it will produce 85,000 ounces of gold and 3.75 million ounces of silver in 2018.

“The balance sheet as at March 31, 2018, includes cash and cash equivalents of $129.3 million, and available credit (excluding Brio Gold) of $827.8 million, for total liquidity to the Company of approximately $1.0 billion. Net debt decreased by $163.5 million from December 31, 2017, notwithstanding capital expenditures while Cerro Moro was in development. This results in an improved balance sheet coincident with the start up of Cerro Moro,” Yamana’s statement reads.

Despite the uptake in overall production, the company continues with its plans of selling Gualcamayo, whose 2018 production guidance is of 110,000 ounces of gold.

The open pit and underground heap leach operation is located in the western Argentinian province of San Juan and continues to be active while management evaluates new efforts to maximize its cash flows.

“This may include an eventual depletion of the oxide resource with a move towards a care and maintenance plan for the asset and further evaluations on a number of prospective oxide targets that are proximal to the mine as well as additional studies on the Deep Carbonate project. If, during the course of 2018, the Company does not receive a sale price that adequately reflects the strategic value of the asset, then the Company would move ahead with the latter options,” Yamana explained in the press release.

The post Yamana exceeds gold production plans in Q1 appeared first on MINING.com.

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Great Panther Silver Reports First Quarter 2018 Financial Results

GREAT PANTHER SILVER LIMITED (TSX:GPR) (NYSE American:GPL) (“Great Panther”; or the “Company”) today reported financial results for the Company’s three months ended March 31, 2018. The full version of the Company’s unaudited condensed interim consolidated financial statements and Management’s Discussion and Analysis (“MD&A”) can be viewed on the Company’s website at www.greatpanther.com or on SEDAR at www.sedar.com. All financial information is prepared in accordance with International Financial Reporting Standards (“IFRS”), except as noted in the Non-GAAP Measures section of the MD&A. All dollar amounts are expressed in US dollars (“USD”), unless otherwise noted.

“Great Panther’s revenues were up 38% reflecting the normal operation of the Topia processing plant compared to the first quarter of last year when it was suspended for planned upgrades”, stated Jim Bannantine, President and CEO. “We continue to focus our efforts on advancing the Coricancha project, and we expect to release an economic study before the end of this quarter. Our balance sheet remains strong and our cash position increased to just over $60 million as we continue to fund Coricancha from the cash flows from our operations in Mexico.”

OPERATIONAL AND FINANCIAL HIGHLIGHTS

Q1 2018 Q1 2017 Change Q4 2017 Change
OPERATING RESULTS
Tonnes milled 96,869 82,656 17% 98,396 -2%
Ag eq oz produced1 1,031,937 730,186 41% 1,065,773 -3%
Silver production – ounces 491,063 366,435 34% 514,218 -5%
Gold production – ounces 5,831 5,178 13% 5,931 -2%
Payable silver ounces 476,325 344,995 38% 516,078 -8%
Ag eq oz sold 971,189 680,984 43% 1,038,023 -6%
Cost per tonne milled2 $ 121 $ 88 38% $ 116 4%
Cash cost2 $ 5.39 $ 3.54 52% $ 7.25 -26%
Cash cost per Ag eq oz2 $ 12.76 $ 10.99 16% $ 13.18 -3%
All in Sustaining Cost (AISC)2 $ 12.33 $ 19.55 -37% $ 14.72 -16%
AISC per Ag eq oz2 $ 16.16 $ 19.10 -15% $ 16.89 -4%
(in 000’s, unless otherwise noted) Q1 2018 Q1 2017 Change Q4 2017 Change
FINANCIAL RESULTS
Revenue $ 17,019 $ 12,371 38% $ 17,384 -2%
Mine operating earnings before non-cash items2 $ 5,225 $ 5,445 -4% $ 4,962 5%
Mine operating earnings $ 4,019 $ 4,662 -14% $ 3,755 7%
Net income (loss) $ (97) $ 3,040 -103% $ (1,918) 95%
Adjusted EBITDA2 $ 415 $ 2,134 -81% $ 904 -54%
Operating cash flows before changes in
non-cash net working capital $ 118 $ 894 -87% $ 618 -81%
Cash and short-term deposits at end of period $ 60,884 $ 53,158 15% $ 56,888 7%
Net working capital at end of period $ 67,076 $ 69,281 -3% $ 65,965 2%
Average realized silver price per oz3 $ 16.36 $ 19.33 -15% $ 16.86 -3%
Average realized gold price per oz3 $ 1,363 $ 1,297 5% $ 1,292 5%
Earnings (loss) per share – basic and diluted $ (0.00) $ 0.02 -100% $ (0.01) 100%
___________________________
1 Silver equivalent ounces are referred to throughout this document. Ag eq oz are calculated using a 70:1 Ag:Au ratio and ratios of 1:0.0559 and 1:0.0676 for the price/ounce of silver to lead and zinc price/pound, respectively, and applied to the relevant metal content of the concentrates produced, expected to be produced, or sold from operations.
2 The Company has included the non-GAAP performance measures cost per tonne milled, cash cost, cash cost per Ag eq oz, AISC, AISC per Ag eq oz, mine operating earnings before non-cash items, cost of sales before non-cash items and adjusted EBITDA throughout this document. Refer to the Non-GAAP Measures section of the MD&A for an explanation of these measures and reconciliation to the Company’s financial results reported in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others.
3 Average realized silver price is prior to smelting and refining charges.

REVIEW OF FINANCIAL RESULTS

Revenue increased by $4.6 million or 38% compared to the first quarter of 2017. This was primarily attributable to an increase in metal sales volumes ($5.6 million effect) as there were negligible metal sales for Topia during the first quarter of 2017 due to the suspension of milling operations for plant upgrades, and an increase in gold prices ($0.4 millioneffect). This was partly offset by a decrease in silver prices ($1.4 million effect). The Company’s average realized silver price for the first quarter of 2018 was $16.36 per oz compared to $19.33 per oz during the first quarter of 2017.

The increase in metal sales volume resulted in a corresponding increase in production costs for the first quarter of 2018, compared to the first quarter of 2017 (approximate $3.2 million increase). Production costs also increased in MXN terms as a result of mining narrower veins at the GMC (which causes more waste material to be mined), along with rate increases for mining contractors ($0.4 million effect). Another factor in the increase of production costs was the strengthening of the MXN against the USD which had the impact of increasing costs in USD terms by $0.8 million.

Mine operating earnings before non-cash items decreased by $0.2 million relative to the first quarter of 2017 as the $4.9 million increase in production costs exceeded the $4.6 million increase in revenue.

Amortization and depletion increased compared to the first quarter of 2017 due to depreciation of the new tailings filtration and handling facilities at Topia that were commissioned in the second quarter of 2017.

G&A expenses for the first quarter of 2018 increased 3% compared to the same period in 2017, primarily due to higher share-based compensation.

Exploration, evaluation and development (“EE&D”) expenses for the first quarter of 2018 increased $1.4 million or 70% compared to the same period in 2017, mainly due to $1.5 million of care and maintenance and project expenditures related to Coricancha, which was acquired on June 30, 2017. The first quarter of 2017 included $0.3 million of Coricancha pre-acquisition EE&D costs related to technical evaluation, integration planning and pre-closing legal and professional fees. The Company will continue to expense costs associated with the ongoing care and maintenance of Coricancha and any project costs associated with evaluating the return of Coricancha to production until such time as a positive decision is made to restart the mine. EE&D expenditures for the first quarter of 2018 also included $0.6 millionof additional corporate development costs, due to a higher level of activity associated with the evaluation of potential acquisitions.

Finance and other income (expense) primarily reflects interest income or expense and foreign exchange gains and losses. During the quarter ended March 31, 2018, the Company had foreign exchange gains of $0.7 million compared to $1.8 million in the first quarter of 2017. …read more

Societal Commentary – Wed 2 May, 2018

Total national costs of undocumented immigrants

Illegal Immigration hurts our country. Thanks GH

You want Big Al’s opinion? “It is illegal and that is pretty simple. Big Al does not support illegal activity.”

The Fiscal Burden of Illegal Immigration on United States Taxpayers

Report by Matt O’Brien and Spencer Raley | September 27, 2017 | View the Full Report (PDF)


Introduction

A continually growing population of illegal aliens, along with the federal government’s ineffective efforts to secure our borders, present significant national security and public safety threats to the United States. They also have a severely negative impact on the nation’s taxpayers at the local, state, and national levels. Illegal immigration costs Americans billions of dollars each year. Illegal aliens are net consumers of taxpayer-funded services and the limited taxes paid by some segments of the illegal alien population are, in no way, significant enough to offset the growing financial burdens imposed on U.S. taxpayers by massive numbers of uninvited guests. This study examines the fiscal impact of illegal aliens as reflected in both federal and state budgets.

The Number of Illegal Immigrants in the US

Estimating the fiscal burden of illegal immigration on the U.S. taxpayer depends on the size and characteristics of the illegal alien population. FAIR defines “illegal alien” as anyone who entered the United States without authorization and anyone who unlawfully remains once his/her authorization has expired. Unfortunately, the U.S. government has no central database containing information on the citizenship status of everyone lawfully present in the United States. The overall problem of estimating the illegal alien population is further complicated by the fact that the majority of available sources on immigration status rely on self-reported data. Given that illegal aliens have a motive to lie about their immigration status, in order to avoid discovery, the accuracy of these statistics is dubious, at best. All of the foregoing issues make it very difficult to assess the current illegal alien population of the United States.

However, FAIR now estimates that there are approximately 12.5 million illegal alien residents. This number uses FAIR’s previous estimates but adjusts for suspected changes in levels of unlawful migration, based on information available from the Department of Homeland Security, data available from other federal and state government agencies, and other research studies completed by reliable think tanks, universities, and other research organizations.

The Cost of Illegal Immigration to the United States

At the federal, state, and local levels, taxpayers shell out approximately $134.9 billion to cover the costs incurred by the presence of more than 12.5 million illegal aliens, and about 4.2 million citizen children of illegal aliens. That amounts to a tax burden of approximately $8,075 per illegal alien family member and a total of $115,894,597,664. The total cost of illegal immigration to U.S. taxpayers is both staggering and crippling. In 2013, FAIR estimated the total cost to be approximately $113 billion. So, in under four years, the cost has risen nearly $3 billion. This is a disturbing and unsustainable trend. The sections below will break down and further explain these numbers at the federal, state, and local levels.

Total Governmental Expenditures on Illegal Aliens

Total Tax Contributions by Illegal Aliens

Total taxes paid by illegal immigrants

Total Economic Impact of Illegal Immigration

economic impact of illegal immigration

Federal

The Federal government spends a net amount of $45.8 billion on illegal aliens and their U.S.-born children. This amount includes expenditures for public education, medical care, justice enforcement initiatives, welfare programs and other miscellaneous costs. It also factors in the meager amount illegal aliens pay to the federal government in income, social security, Medicare and excise taxes.

FEDERAL SPENDING

The approximately $46 billion in federal expenditures attributable to illegal aliens is staggering. Assuming an illegal alien population of approximately 12.5 million illegal aliens and 4.2 million U.S.-born children of illegal aliens, that amounts to roughly $2,746 per illegal alien, per year. For the sake of comparison, the average American college student receives only $4,800 in federal student loans each year.

FAIR maintains that every concerned American citizen should be asking our government why, in a time of increasing costs and shrinking resources, is it spending such large amounts of money on individuals who have no right, nor authorization, to be in the United States? This is an especially important question in view of the fact that the illegal alien beneficiaries of American taxpayer largess offset very little of the enormous costs of their presence by the payment of taxes. Meanwhile, average Americans pay approximately 30% of their income in taxes.

FEDERAL TAXES

Taxes collected from illegal aliens offset fiscal outlays and, therefore must be included in any examination of the cost of illegal immigration. However, illegal alien apologists frequently cite the allegedly large tax payments made by illegal aliens as a justification for their unlawful presence, and as a basis for offering them permanent legal status through a new amnesty, similar to the one enacted in 1986. That argument is nothing more than a red herring.

FAIR believes that most studies grossly overestimate both the taxes actually collected from illegal aliens and, more importantly, the amount of taxes actually paid by illegal aliens (i.e., the amount of money collected from illegal aliens and actually kept by the federal government). This belief is based on a number of factors: Since the 1990’s, the United States has focused on apprehending and removing criminal aliens. The majority of illegal aliens seeking employment in the United States have lived in an environment where they have little fear of deportation, even if discovered. This has created an environment where most illegal aliens are both able and willing to file tax returns. Because the vast majority of illegal aliens hold low-paying jobs, those who are subject to wage deductions actually wind up receiving a complete refund of all taxes paid, plus net payments made on the basis of tax credits.

As a …read more

Societal Commentary – Wed 2 May, 2018

Total national costs of undocumented immigrants

Illegal Immigration hurts our country. Thanks GH

You want Big Al’s opinion? “It is illegal and that is pretty simple. Big Al does not support illegal activity.”
The Fiscal Burden of Illegal Immigration on United States Taxpayers

Report by Matt O’Brien and Spencer Raley | September 27, 2017 | View the Full Report (PDF)

Introduction

A continually growing population of illegal aliens, along with the federal government’s ineffective efforts to secure our borders, present significant national security and public safety threats to the United States. They also have a severely negative impact on the nation’s taxpayers at the local, state, and national levels. Illegal immigration costs Americans billions of dollars each year. Illegal aliens are net consumers of taxpayer-funded services and the limited taxes paid by some segments of the illegal alien population are, in no way, significant enough to offset the growing financial burdens imposed on U.S. taxpayers by massive numbers of uninvited guests. This study examines the fiscal impact of illegal aliens as reflected in both federal and state budgets.

The Number of Illegal Immigrants in the US

Estimating the fiscal burden of illegal immigration on the U.S. taxpayer depends on the size and characteristics of the illegal alien population. FAIR defines “illegal alien” as anyone who entered the United States without authorization and anyone who unlawfully remains once his/her authorization has expired. Unfortunately, the U.S. government has no central database containing information on the citizenship status of everyone lawfully present in the United States. The overall problem of estimating the illegal alien population is further complicated by the fact that the majority of available sources on immigration status rely on self-reported data. Given that illegal aliens have a motive to lie about their immigration status, in order to avoid discovery, the accuracy of these statistics is dubious, at best. All of the foregoing issues make it very difficult to assess the current illegal alien population of the United States.

However, FAIR now estimates that there are approximately 12.5 million illegal alien residents. This number uses FAIR’s previous estimates but adjusts for suspected changes in levels of unlawful migration, based on information available from the Department of Homeland Security, data available from other federal and state government agencies, and other research studies completed by reliable think tanks, universities, and other research organizations.

The Cost of Illegal Immigration to the United States

At the federal, state, and local levels, taxpayers shell out approximately $134.9 billion to cover the costs incurred by the presence of more than 12.5 million illegal aliens, and about 4.2 million citizen children of illegal aliens. That amounts to a tax burden of approximately $8,075 per illegal alien family member and a total of $115,894,597,664. The total cost of illegal immigration to U.S. taxpayers is both staggering and crippling. In 2013, FAIR estimated the total cost to be approximately $113 billion. So, in under four years, the cost has risen nearly $3 billion. This is a disturbing and unsustainable trend. The sections below will break down and further explain these numbers at the federal, state, …read more

Source:: The Korelin Economics Report

The post Societal Commentary – Wed 2 May, 2018 appeared first on Junior Mining Analyst.

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DAX breaks out as EUR/USD extends decline

As reported earlier, it has been a good day for European stocks, most notably the German DAX Index. However, shares on Wall Street have not been so buoyant despite a very good earnings season so far. Sentiment has been boosted after U.S. President Donald Trump decided to extend the deadline on deciding whether to impose tariffs on European Union exports of steel and aluminum and this helped to reduce the threat of a trade war for now. On top of this, the sharp rally in the U.S. dollar has weighed heavily on the Euro/U.S. dollar (EUR/USD) currency pair.

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