Interesting reading the royalty liability limits and as they account for them and by my reading they can use the tax credits providing they have a profitable tax year,even although still having outstanding tax loss credits to use. The stickler as I understand current plans,is plans to increase resources which also increase ongoing liabilities until we hit the 85k tons of Copper found which will continually increases liabilities outstanding for tax purposes. Then also when 85kt is finally mined at which stage no more royalties are payable the whole tax dynamics change. In the meantime that liability rolls with the price of Copper and grows with any resource increase in tons. So to my mind that means a profitable operational year co-inciding with Copper having a significant price drop to enable liabilities to drop and a taxable profit to be made before 85kt is mined to enable a distribution. Or 85kt of ore being mined from restart and that future liability being extinguished completely as a result which at next years planned mining rates is around 6yrs.
DYOR + DYODD I could be wrong in my summation.
HGO Price at posting:
3.1¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)