Spot on. In the annual report, it had carried forward losses of $508M
These deferred tax assets were not in the annual report as it was deemed unlikely that they would be used unless there was a sustained improvement in profit.
There was a HY loss of $21M booked also, which would translate to another $6M or so in tax losses (there would be some adjustments to this) but let's say the deferred tax assets are about $510M.
AWE had nowhere near this amount of tax losses; and
its book equity was substantially under AGO's also;
AWE made a FY17 loss of $227M, AGO had made a FY profit of $48M; and
the synergistic benefits between MIN and AWE were not to the extent of $180M per year; like AGO as claimed by the MIN CEO.
The return on investment even if MIN pay 3x the amount for AGO would be substantial but it expects to get hold of an investment at price earnings under 1 or EPS greater than its first offer of 3c per AGO share.
It would be a travesty if MIN were to miss out again by not bidding up to a reasonable market value for AGO's assets.
AGO Price at posting:
3.1¢ Sentiment: Buy Disclosure: Held
