Thanx for your numbers. You would need to make two adjustments: standard corporate income tax payable in Namibia is 35% A 3% royalty is levied on the gross sales value (ie not profit-related) Rio is currently paying a 6% royalty, not the standard 3% paid by Paladin on Langer Heinrich sales and as would be paid by Extract on Husab and Bannerman on Etango. It is charged the higher rate because two years ago Rossing challanged the Nam government's right to impose a royalty (they were previously only levied on diamonds but extended to non-diamond minerals in 2006) and got whacked by way of reprisal. That is one of the many reasons why I would be surprised if Mark Hohne will go for a jv with Rio for Husab unless Rio is prepared to buy out Kalahari's shareholding in Extract at a substantial premium- ie minimum of ?3 per Kalahari share. Rangefinder
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