Ann: Outstanding Assay Results at Ohio Creek, page-50

Kojak

I would assume that the royalty payment would be added to all the other annual costs, including depreciation allowances, that get deducted from revenue to arrive at net profit, against which the tax rate is applied. I am pretty sure that is how it is done in Australia.

AISC is a separate concept to accounting costs. AISC was set up by the World Gold Council to bring some sort of uniformity in reporting by gold mining companies in order to make their operational costs transparent to investors. Accounting costs/income are whatever can be so recorded in accordance with accounting rules promulgated by governments. The timing of the recognition of costs and revenue can differ between the two, and some costs may be handled differently, eg capex, depreciation, interest expenses (the later I do not think are part of AISC).

The fact that Guyana's company tax rate is the same as Australia's is not relevant to the tax payable by TRY in Australia. There is simply no tax payable here because their income is derived from overseas operations. Nor would there be any franking credits that they could distribute to shareholders when dividends are paid.

Many companies have inter-company loan arrangements, charging interest on those loans. Most (all?) large multinational companies use them to reduce their tax bill in Australia, often to negligible levels. You may have read that one large US oil company operating in Australia vastly over-charged the interest payments on such borrowings to reduce its tax, and lost their ATO court case requiring payment of a substantial sum. Other than what you wrote I do not know anything about TRY's inter-company loan arrangements, but you are probably right that there is some tax deduction occurring.

I suppose that since Azimuth was taken over by TRY, the previous tenement ownership arrangements continue to apply, whatever they were, and the only change is that now AZH is an unlisted (in terms of the ASX) subsidiary of TRY.

loki