PILBARA MINERALS LIMITED (ASX:PLS) - Repercussions - tax and other, page-2 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by kcheers ↑

Not wanting to perpetuate any rumours of a potential take over but I acknowledge it has been there for many months at the back of some SH's thoughts.

My purpose for this thread is to raise positives and negatives in going to mining production and achieving integration of value adding down stream versus a take over occurring at any time along the way.

Some maybe happy to receive a few bids and escape at $2 or more to then follow up on some strategy less mature with again; these same risks we have already experienced to now achieve such an asset of international significance. My view is that there is a lot of meat left on these PLS bones with arguably much lower risk from here. For many, getting a 10% annual return should be quite pleasing. PLS would likely exceed that many times over in the next 5 years and we need to take a longer term rolling average to appreciate this in creating our own wealth.

Moving to a new prospect in the penny dreadfuls may sound fun but is fraught with many more risks and for some, the potential loss at times of previous gains received. Inherit risks that many may not recognise? Lets please acknowledge that 100% returns in the market place are not commonly achieved. SOS has that as a minimum and indeed, his results may not be the norm. Lets acknowledge that few would also do the research he may do and some may do more. Usually returns are commensurate with risk.

To balance that thought above then and accept that we are potentially highly de risked at this level with so much upside with exceptional returns, I get confused why some would be selling now? I would question their understanding of time frames and think in some cases for some; long term may mean one year; which is quite ridiculous.

What other dangers are there? Some could get more wealth than they had planned or even considered? Not a bad problem. Some could underestimate their tax implications and not plan well for this. Tax issues are a good problem to have IMO for it means we have made a profit. I am sure some have also sold these shares to pay unplanned tax implications from past sales.

Take over could allow us to take our achievement thus far and move to a more defensive position and have greater security than what we would have enjoyed or alternatively; place bets on other penny wobblers? Update our domestic situation? Buy a resort?
My thoughts here are that our present position has little risk and so much to gain given there are no peers with our qualities or fundamentals in an environment conducive to growth, sorry.... extreme growth of our resource.

Should a take over occur, have you thought of the tax consequences? If it was a script offer from MIN, then would you feel happy to remain and what is your believe of their fundamentals and likely growth in that position? I would feel my strategy has been watered down and my potential greatly diminished.
If it was a cash offer, would you be caught with "your pants down" with no tax planning done? You may be forced into a position of realising all gains in one Financial year. That prevents you from averaging out over a few years. That prevents the "not quite ready to retire" holder to pay tax unnecessarily given he could of taken a position to move from accumulation to pension phase. Or the man who was planning to cease work or partially retire (like JB junior) and pay CGT at lower levels according to his marginal tax rate in that position.
For some, this could place them in the top MTR of 45% plus 2% medicare, plus 2% budget repair levee plus a medicare levee surcharge of 1.5% if you dont hold private medical insurance.

Is the timing for right for a holder to receive Take Over offer? Few could plan for this and many strong holders own significant life changing potential dollars here and it would be sad to realise the net result, and a little planning could have achieved much better.

I trust this thread does not attract negative contributions the likes we often accommodate for a few weeks.
What I would be most appreciative of; is the issues some may wish to identify and elaborate on. I do think this is a topic of great importance.

Finally, none of the above is to be considered advice but to encourage thought, consideration and discussions. Please be aware to respond acknowledging that moderation could occur if comments are considered advice.
Always do your own research and seek professional advice for your own personal matters.

Thank you for reading and I await in anticipation for your thoughts and issues that could provoke others into a better outcome.

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A very thought provoking post K. As a relative newcomer (5 months .54 ave) and with little understanding of TA I have tried to absorb the FA with the excelellent contributions by Oz SN and others contributing to my research. I have been disheartened at times by the Downrampers and manipulation discussions but the reality to me is the resource is there and the LT risk looks positive. I am not a trader - retire in 4-5 years and this stock forms part of a very mixed PF of asx200 and specs that I am trying to shape into a complimentary addition to my industry SF.
So tax CGT concessions are a definite part of my strategy but moreover find this stock of particular interest (along with AJM) due to the unfolding story of exploration through to production. To me a TO would be somewhat anticlimactic albeit it may still provide a good ROI. But ultimately would like to see this through to a dividend producing asx20o staple..

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Last $1.88		Change 0.095(5.34%)		Mkt cap ! $6.033B

Open	High	Low	Value	Volume
$1.79	$1.88	$1.76	$109.3M	60.11M

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