MLX

2.06%

49.5¢ metals x limited

Sorry but I'm reading that as $254mil of tax losses in the...

First 97 Last

Share
Profile

Follow
miningnut

10,836 Posts.

2305

20/02/21

14:05

Post #: 51180572
Share

Originally posted by 043110 ↑

Regarding the expense the mine dev costs for tax purposes, this is more complicated to work out, but if you look at the tax at Note 8 of the financials, you can see MLX has a deferred tax liability of $9m for the mine dev (see screenshot below).

This means, they've historically written off the mine dev costs for tax purposes in the year they incurred the expenses rather than capitalising it and then depreciating/amortising it over the LOM. Why it is classified a tax "liability" not an "asset" is purely a semantic construct of accounting but if you wish to understand, the very brief explanation is that future amortisation of the mine dev costs in the PnL are not tax deductible (because they've already taken the upfront 100% deduction so no double dipping). That's why it is a liability.

Now, these differences between tax and accounting will wash out over the LOM such that the differences are merely timing.

Regarding the tax losses that @@Cashmeoutside and other posters have been discussing, MLX have $254.5m of "tax losses" theoretically available for them to use to offset future taxes. This number is the amount of tax , so the tax-free before-tax profit figure is actually $846.7m.

However, there is one big qualification to the $846.7m figure:

$521m is subject to a restricted rate of utilisation ($156.3 divided by 30%). There is an special tax rule called "available fraction" which no one here needs to understand, but it basically means there is a question mark about how much of the $521m is available for MLX to use each year.

Therefore, the actual amount of tax free before-tax profit that MLX can generate is closer to $325m.

Now there will be some differences between accounting profit and taxable profit, depending on the rate the deferred tax/liability timing differences unwind each year, but $325m tax free profit is nothing to sneeze at.

Expand

Sorry but I'm reading that as $254mil of tax losses in the Consolidated Entity and not tax benefits - so $76.2mil of tax benefits and likewise $156mil of tax losses subject to restricted rate of utilisation so $46.8mil of tax benefits.
But as they have sold Paterson Copper Pty Ltd these restricted rate utilisation losses would flow to the new owner IMO.
So they might have around $100mil of tax losses($30mil tax benefit) remaining in MLX.

MLX Price at posting: 21.5¢ Sentiment: None Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

Making money: How many microcaps should be in an investor's portfolio?

The Altcoin Landscape (Part 1): Key alternative cryptocurrencies to watch

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Week 44 Wrap: Relatively boring week ahead of US election; HotCopper's most watched; Oz inflation at 3.5%

What each US election outcome would mean for Australian companies & investors

MIN

Movers and Shakers: Zip Co, MinRes, Kuniko, more – The week's top ASX gainers

Aussie inflation seemingly hit a 3 year low. So why's the ASX200 red?

Bitcoin hits fresh record as instos pile into BTC ETFs – and Trump helps, too

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

'We're looking': Nickel-rich Indonesia sounds graphite warning to Aus producers

There are more pages in this discussion • 211 more messages in this thread...

First 97 Last

Add MLX (ASX) to my watchlist

(20min delay)
Last 49.5¢		Change 0.010(2.06%)		Mkt cap ! $443.8M

Open	High	Low	Value	Volume
47.5¢	50.0¢	47.3¢	$1.594M	3.257M

Buyers (Bids)

No.	Vol.	Price($)
2	10749	49.0¢

Sellers (Offers)

Price($)	Vol.	No.
49.5¢	309380	3

View Market Depth

No.	Vol.	Price($)
1	2038	0.490
1	2000	0.475
3	100402	0.470
1	1280	0.465
1	2173	0.460

Price($)	Vol.	No.
0.495	272314	2
0.500	471672	20
0.505	92666	3
0.510	315833	5
0.515	99973	5

Last trade - 16.10pm 01/11/2024 (20 minute delay)

MLX (ASX) Chart

Sorry but I'm reading that as $254mil of tax losses in the...

Making money: How many microcaps should be in an investor's portfolio?

The Altcoin Landscape (Part 1): Key alternative cryptocurrencies to watch

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Week 44 Wrap: Relatively boring week ahead of US election; HotCopper's most watched; Oz inflation at 3.5%

What each US election outcome would mean for Australian companies & investors

Movers and Shakers: Zip Co, MinRes, Kuniko, more – The week's top ASX gainers

Aussie inflation seemingly hit a 3 year low. So why's the ASX200 red?

Bitcoin hits fresh record as instos pile into BTC ETFs – and Trump helps, too

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

'We're looking': Nickel-rich Indonesia sounds graphite warning to Aus producers

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Sorry but I'm reading that as $254mil of tax losses in the...

Top Stories

Making money: How many microcaps should be in an investor's portfolio?

The Altcoin Landscape (Part 1): Key alternative cryptocurrencies to watch

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Week 44 Wrap: Relatively boring week ahead of US election; HotCopper's most watched; Oz inflation at 3.5%

What each US election outcome would mean for Australian companies & investors

Movers and Shakers: Zip Co, MinRes, Kuniko, more – The week's top ASX gainers

Aussie inflation seemingly hit a 3 year low. So why's the ASX200 red?

Bitcoin hits fresh record as instos pile into BTC ETFs – and Trump helps, too

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

'We're looking': Nickel-rich Indonesia sounds graphite warning to Aus producers

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News