1. The cash component.
2. They have $25M worth of consolidated losses. In future earning terms that's $7.5M worth of tax savings for a future profitable mining venture.
If I was setting up a new mining company and could acquire an ASX listed company basically for free and then enjoy $25M worth of taxable income with a zero tax liability I would be all over it.
This is a poor offer for current shareholders and there is no way I would accept it. The only way I would consider it would be if I had a huge tax liability from a large profitable trade or property you may want to cement your losses.
Personally at this stage I'm interested to see what the new board have instored for us.
MHM Price at posting:
3.5¢ Sentiment: None Disclosure: Held
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