momentum upwards continues, page-22

Hi Harlee, Yes capital gains tax issue is a thought, but it does not stop an announcement being made now if it is a done deal with settlement July 1.

Taxable amount will be the same I guess whether June 30 this financial year or Jul1 next. However July1 settlement would mean actual Tax payment would be deferred about 18 months which would be good for the 12 month cash position. The balance sheet would be the same either way I think.

The actual deal structure could be quite complex and tied to further production, royalties etc etc. Also to consider is the write downs of development and plant etc.

The buyer will want the JV partners to apply maxamum writedowns while while visa versa applies to the seller.

I am not very knowledgeable about ATO rulings on mining company taxation issues at all - have to leave it to the bean counters. Maybe others in the know could comment.