? rcp to merge with sre, page-9

Moly - if you continue going on about $80m of tax losses I'm going to start using the TOU violation button for (deliberately or not) posting misleading information

- the $80m of losses you talk about are ACCOUNTING losses of the RCP grouo. accounting losses do not necessarily and rarely ever equal available TAX losses

- per note 5 (on page 40 of the 2011 Annual Report) the unrecognised deferred tax asset, which includes tax losses, was $21 million at 30 June 2010.

- of this, $7m related to Fiji deferred tax (not Australia). presumably the $22m amount at 30 June 2011 also includes the $7m Fiji even though it is not stated. if it doesn't the tax note doesn't work (wouldn't be the first case for an ASX listed company) as the movement between the 21.7 and 22.4 agrees to the 0.7m a few lines up.

- at best, RCP has $15m of tax losses. as used moggie correctly points out, the availability of the losses would be questionable at best given australia's company tax loss rules.


in performing a due diligence / valuation any potential acquirer would attribute no value at all to RCP's losses. they would be looking at the tenement value (net of any rehab obligations) only.