GREY:PGDIF - Post by User
Comment by
ekimon Dec 07, 2016 5:19pm
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Post# 25568559
RE:RE:RE:Rio Tinto wants diamonds and only world class operations 10y
RE:RE:RE:Rio Tinto wants diamonds and only world class operations 10yRio tinto buying out PGD instead of JV would give Rio access to all those tax benefits accumulated over the last decade at DO18/27 (nanuq/Chidliak) and rather then waiting to see the benefit for Diavik..you could theoretically see an immediate reduction in tax bills at Diavik.
PGD holds close to CAD$130 million in tax benefits that can be used to offset taxes for the next decade. One has to make a profit to be able to access that hidden gen. Rio Tinto making money at Diaivik probably counts..and eventually profits at Chidliak will be reduced by these benefits.
PGD is worth half of its tax benefits.
Assuming a tax rate of 30% x 130 = CAD$40 million in future cash flow from accounting alone.
That equates to 12 cents per share.
LONG...PGD
EKIM