Sandstorm Metals & Energy Ltd STTYF

RE: RE: RE: RE: RE: RE: The upside to RDA

[unlimited_aw]

In theory you are correct Elmo. If you amalgamate one of your profitable subsidiaries with a company from outside the group that has carryforward tax losses, you can settle those losses, but only if the type of business is similar and only for a few years. This however has nothing to do with Sandstorm. RDA and NDX are not subsidiaries of Sandstorm. They are just two different companies Sandstorm has/had transactions with. Sandstorm can therefore compensate the losses occured with transactions with RDA with profits on one of the others, no matter what business they are into. Take the example that I sell cars. If I sell one car to a lawfirm and another to a pharmacy owner and the latter does not pay, goes bankrupt and I thus loose my money. I can settle this loss with the profit on the car I sold to the lawfirm, before I need to start paying taxes.