Hi Rock
Have printed out the financials and a few things come to light.
1. KPMG tax have spend a considerable amount of time ont he job. It is normal to see audit and tax working on the same client and for the tax balance to be greater than the audit fee. However, due to the fact GBG are in a loss position it points more to the strategy. It could relate to the sale of the mine and the potential capital gains issues. I would assume GBG took deductions on development costs as a deduction in the year incurred and not capitalised for tax purposes. This would also show the level of tax involvement over the JV set up.
2. 10 mil a year in exploration is good.
3. 10 mil in sale will probably be questionable and Monarch will want to issue shares. These could be sold as long as there are no clauses over them.
4. No ones taking leave at GBG and this is a good sign that activity is ramped up.
5. at least 2.5 years worth of funding for continued activities is solid so there is no need to raise funds.
6. admin expenses seem reasonable considering the level of expertise in house.
7. all financial & liquidity ratios apear good.
8. no contingent liabilities with regards to land rights is promising.
Will have a better look tonight and let you know more.
Cheers
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