LTR 2.60% 79.0¢ liontown resources limited

Ann: Liontown moves forward with DSO opportunity, page-112

  1. 9,724 Posts.
    lightbulb Created with Sketch. 2636
    "... I don't know the answer to that ,... "

    Maybe some colourful accounting can be put to advantage;

    Cost of removing and storage of overburden as pure waste, plus management (clerical and accounting) = $X

    Benefit (tax offset against operational cost) = $T deduction

    DSO sale dynamics;

    Income from sale of waste minus management (clerical and accounting) = $Y

    The simple equation may look something like; income $In = $Y - $X,

    However, now, thanks to a heads-up from unfriendly fire (DF), we may have income looking something like; $In = ($Y+$Td) - $X, instead of $In = $Y - $X, with $Td accrued at a later date and/or in another way.

    Putting simple arbitrary numbers to the first looks like $In = ($100 + $10) - $50,
    ...and the second $In = $100 - $50, shows a possible benefit of $In = $60 NOW instead of just $50 later.

    I am not an accountant, but I'll bet HQ are running a ruler over utilising the tax deduction aspect sooner, if they have not already, in an effort to maximise operating capital prior to main production income. biggrin.png


 
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