Ann: POSCO Final Settlement Funds Received, page-63

Reduce assessable income.

30% is simply the company tax rate.

Galaxy have crystallised a huge capital gain from the sale of the northern tenements (remember they acquired the lease for next to no cost base) and as such are required to pay tax on this at the applicable rate. SO effectively the more revenue galaxy make the higher their taxable income. Galaxy need to delay revenue receipts to a more favourable period or use deductions/offsets to reduce assessable income. 

YoP expenses will assist in the reduction. Capex at SDV will further assist. This is why I can guarantee a JV deal will be done very soon and construction will start before the end of the month. Galaxy will look to bring forward as much of the plant costs as possible to offset the tax payable.

Galaxy are cashed up and have a plethora of options. Colinchi seems to think that shipments from MC are make or break, he should focus his attention on closing out his position before its too late.

My background is financial planning, however perhaps an accountant can assist?