i was at the presentation and struggle to understand the confusion. The numbers presented were not a financial forecast but were clearly represented as a conservative case. From a legal perspective this is the most appropriate position for directors to take. The key points seemed to me to be: BDO - tax accountants had determined that there was a more efficient tax structure to be implemented( Russian taxes around 60%)-no sales would take place until this was done,assume tax rate in numbers based on efficient structure Sales price in Russia expected around $1000 Gross margin at 65% conservative and will improve with increase in production volumes If Russia squeezes price there is enough in cogs to maintain gross margin EX Russia prices could be significantly higher than in Russia given 90 day treatment . June 09 numbers would be very encouraging Beyond can be spectacular. Have to comment that presentation by Co sec was balanced,excellent and real so all you coat tuggers and spivs stay away.
SLA Price at posting:
67.3¢ Sentiment: LT Buy Disclosure: Held
