tax profit.....takeover target?

Have a look at the 2010 annual report; no debt to speak of but there is $40,000,000 in accumulated losses! has nobody noticed?

If I have this right it means that this loss can be offset against any future profits to reduce the tax bill, company tax rate is 30% so effectively the company has a $12,000,000 cash asset.

Now the market has valued the entire company at $20m which means they have valued all of the following at $8m:

- JV with Varun
- madagascar gold - blue sky potential
- madagascar gemstones - new but encouraging
- Ardlethan - great potential
- Bingara diamonds - elusive but possibly world class
- Victoria gold project
- Existing debt free, lean, well run public listed entity

$8m for this is ludicrous however I hope TNR does not get swallowed because we would not see the true value realised in a takeover.

I for one have bet half the farm on this, when the dust settles this little speccie is going to not just get me beer money but rather send me and my family to Europe for a year, purchase a couple of investment properties and fund a new business I'm working on, this is the ground floor on a project that I think will change the future of my great grangchildren and just quietly......I'm excited.

For all those that sell at .009 - .012 over coming weeks, good luck with that.