Any news?, page-6

The FY2017 Annual Report reads:

The Company has estimated carry forward operating tax losses of $111,390,565 at June 2017 (2016: $119,159,128) which are not recognised. The ability to utilise the operating tax losses will be subject to satisfying relevant eligibility criteria for the recoupment of carry forward tax losses.

I assume the main reason for the non-recognition of the $111,390,565 stems from the fact that most of these losses relate to a time when the ownership of the business was substantially different. The ATO's policy is to discourage folk from buying distressed companies substantially for the tax loss, and that gives rise to the Change of Ownership Test (COT). EGN would fail the COT. However, not to discourage genuine efforts to rescue a distressed company, there is a Same Business Test (SBT). EGN may have to negotiate the tax-loss issue with the ATO, relying on the SBT to win the day. The outcome of this issue would have a significant impact on SP. That is what might be the news to catapult the SP upward.

For some background on COT and SBT, see https://treasury.gov.au/publication...tment-of-losses/chapter-4-loss-carry-forward/

I have held EGN since the sad days of Michael Coote's stewardship, but I do not follow it closely. If Dale Elphinstone were a Catholic, and the Pope held shares in EGN, Dale would have been canonised as a saint by now.