Taken from Stockhouse, including SRBTheory from poster based on...

Taken from Stockhouse, including SRB

Theory from poster based on POE figures presented in Q1 report:

50% Tax + 5-15 % (sliding scale) royalty
+ SRB (Approx. 22%-37.5%) after tax of
profits, once capital is recovered

The $11,335,000 SRB charge they have in the 1st quarter 2008 report is 37.15% of Revenues after royalties and not including interest. I don't quite understand how they are calculating it.

Shouldn't the SRB be calculated after tax.

eg:

Income before tax = 24,761,000
Tax @ 50 % = 12,380,000
Income after tax = 12,380,000
SRB @ max 75% = 9,285,000 (I know this is high, but I just used the MAX to make the numbers jive)
Net Income after tax and SRB = 3,095,000 + interest = 265,000
Total Net Income 3,360,000 = .075 share.

Adds up to almost the same amount, but I just don't understand how they got $11,335,000 for the SRB or the current and future income tax numbers either. Just makes no sense.





Reply from POE CFO after querying:

You are close - the SRB is calculated pre-tax therefore it is 11mm/28mm
(as you would add back non-cash depletion and stock comp)or approximately
39% of profits. It is then deducted for tax purposes, therefore having an
after tax effect of 20%, not 39%.