cse own 11m shares in syr worth $35.2m, page-2

There have been a number of emails over the past 6 months regarding the potential tax payable by CSE upon realisation of the SYR shares.
If you look at last years annual report it appears that CSE have already taken up the potential tax liability when SYR shares were trading at $2.33 (at 30 June 2012). This appears to have resulted in CSE taking up the potential CGT liability of $7.464m however CSE had carried fwd losses to cover this (I think - see below). Given auditors speak in gobbedlygook can others offer their opinion on what Note 8 on page 42 means? I think it means that the potential tax has been recognised and that there are sufficient losses to cover this and also provide a further carried forward tax benefit of $1.211m. If this is the case then the valuation of CSE will be as follows (assuming todays close of $3.20 for SYR)

106.845m shares on issue - no oppies so no further dilution.

Cash as of 31 Dec - $2.5m (with estimate of $200k outflow for the current quarter to 31 March)

SYR shares held = 11 million

Value = 11m x $3.20 = $35.20m

Tax already accounted for in 2012 for SYR valuation at $25.63m (see page 45 of AR). Profit yet to be taxed is $9.6m ($35.2 - $25.6). Tax on $9.6m = $2.88m. Less $1.211 tax benefit carried fwd = tax payable of $1.67m.
So profit net of tax is $33.53m ($35.2m - $1.67m). Add in cash $2.5m = $36.03m

$36.03m/106.845 = 33.7 cents per share.

With CSE trading at 23 cents this is a 46% undervaluation on a POST TAX basis (assuming my tax note interpretation is correct).

This is the tax note in CSE AR (please look at the AR and the table of figures for it all to make some sense).
"Deferred tax balances have been recognised for the first time in the year ended 30 June 2012. This has been done
due to the likely capital gains tax payable in relation to the consolidated entity's investment in Syrah Resources
Limited (SYR).
During the year a gain of $1,710,000 has been recognised on initial recognition of Copper Strike's share holding in
Syrah plus a further subsequent revaluation increment of $23,620,012.
The capital gain payable on this amounted to $7,464,004, and a deferred tax liability has been recognised. A deferred
tax asset of $1,237,708, predominently made up of $1,156,616 in tax losses has also been recognised.
The tax effext of the revaluation increment has been taken through the available for sale reserve. For this reason an
income tax benefit of $1,211,395 has been recognised in the current year."

Maybe we should ask the company to clarify the tax situation if other people find this as confusing as me.