You are absolutely right to highlight the tax point, which...

You are absolutely right to highlight the tax point, which other posters have missed. This is very important. The pre-tax profit was $12m same as FY23. The doubling in statutory NPAT profit is caused entirely by taking up a credit of $14m for recognising tax losses that had not been valued before. AR Note 7 explains this. There are further tax losses which I expect will be credited in FY25 and 26, which will again distort the stat result of those FYs. It is good that MME felt the confidence (per accounting standards) to do this, but this treatment is a matter of judgment. When cos change their policy about recognising tax losses it always caused distortions to statutory profit. The rule of thumb is that a co should not recognise i.e. value a tax loss unless it is highly confident that future profit will enable it to use that tax loss within 2 or 3 years. MME is therefore expressing confidence that it will make reasonable future profits, and the auditors have accepted that opinion- that is all. MME has acknowledged this point briefly but not highlighted what they have done. They should have done so because almost all readers will gloss over this.

I am very happy to continue to hold my 2m shares, and I congratulate MME for producing a solid result, BUT holders should not get carried away. The profit before tax was unchanged from the $12m of last year. This is NOT a signal for a stratospheric rise in the share price. As I’ve posted before 12-15c is appropriate for these results. If anyone thinks MME is worth 20c today I would immediately sell to them at 20c. DYOR

absolutely right to highlight the tax point, which other posters have missed. This is very important. The pre-tax profit was $12m same as FY23. The doubling in statutory NPAT profit is caused entirely by taking up a credit of $14m for recognising tax losses that had not been valued before. AR Note 7 explains this. There are further tax losses which I expect will be credited in FY25 and 26, which will again distort the stat result of those FYs. It is good that MME felt the confidence (per accounting standards) to do this, but this treatment is a matter of judgment. When cos change their policy about recognising tax losses it always caused distortions to statutory profit. The rule of thumb is that a co should not recognise i.e. value a tax loss unless it is highly confident that future profit will enable it to use that tax loss within 2 or 3 years. MME is therefore expressing confidence that it will make reasonable future profits, and the auditors have accepted that opinion- that is all. MME has acknowledged this point briefly but not highlighted what they have done. They should have done so because almost all readers will gloss over this.

I am very happy to continue to hold my 2m shares, and I congratulate MME for producing a solid result, BUT holders should not get carried away. The profit before tax was unchanged from the $12m of last year. This is NOT a signal for a stratospheric rise in the share price. As I’ve posted before 12-15c is appropriate for these results. If anyone thinks MME is worth 20c today I would immediately sell to them at 20c. DYOR