Ann: Results of Meeting, page-85

There is one problem with an asset sale vs company sale that hopefully the players have thought about.

As of last years annual report the company had non-current assets of $27m. If we then go and sell Karlawinda for say $80m in line with your estimate, are we liable for tax on a $53m "gain"? The company does have accumulated losses of $17m but can that be allocated towards a capital event rather than income generated from operations?

Therefore would we pay corporate tax of 30% on full "gain". If so that takes about $16m off the valuation and leaves cash to return to shareholders only 10-15% above current MC levels. Not a lot of bank to be made?

I am not an accountant, so if any on here would like to throw their 2c in that would be much appreciated. Above is all just my opinion and musings.