RE:RE:Tax loss
Abcourt Mines is already priced down from its highs of 24 cents by 35.4%. That is a significant loss for everyone including myself who bought in at higher values above 20 cents.
So one might argue that because of this, Abcourt's December's tax losses have already been factored in.
Furthermore, many have already stated that they have used up all their contribution room in their TFSA and RRPS (or American equivalents) to make their Abcourt purchases.
I dislike using an RRSP product for companies generating capital gains when that registered investment vehicle, is likely, to be very heavily taxed, in the future.(due to the recent and future government debt issuance that will be repaid by present and future generations).
However, there has been some discussion by Abcourt management about distributing dividends to its shareholders. An RRSP product is widely understood to be a better retirement investment tool in which to place any future earned, income stream.
But now is not the time to do that!
Keep your contribution room open for future years. This company, is still very likely, to make some significant, future profits. That's when distributions, are more likely, to be paid.
Only the most major shareholders would stand to benefit from a premature cash payout. It wouldn't last too long. And then, the company would flounder!
After most of the capital gains have occured, then and after the price has likely fully risen, would the better time to use up any remaining RRSP contribution room. The distributions would then be better paid out from a RRIF over the time of many years.
It is better for people with money to live as long as possible! Make the most of all your pension income.
The poor are not as lucky as you! Time is not on their side!
Personally, I have already used up my present TFSA room which is not subject to any future taxation. With the losses that I have already incurred, my margin account is the best present place to put any new Abcourt purchases.
In the new year, simply transfer the appropriate number of shares (in kind, from your margin account) into your TFSA account as the new contribution room becomes available in year 2021.
For now, the use of a margin account seems the best strategy to use for any future Abcourt purchases during the remainder of this year.
Share purchases made inside a margin account still receive the best capital gains and dividend tax treatment after all possible TFSA contributions, have been made.
I am not familiar with the American tax regime but that's for them to figure out.
This is the best strategy to use until the government decides that economic expediency overrules the need to keep its popular support from the middle class. That is unlikely to happen in the near future. But if rules change in a few years, then the RRSP still remains, the next best place, to transfer your remaining shares that you may decide to purchase, in the near future.
But, It would be best to make any new share purchases as soon as possible! We have no idea when the first SG gold pour may come.
That will be the real game changer! And everyone knows that!
Many shareholders, purchasing at this price, may feel the risk is a reasonable one to take.
Nevertheless, the company does appear behind on its SG production plans. This seems to account for the recent sharp decline in the price of this company's shares.
By now, the gold should already, have been poured. Disappointed investors, felt forced to sell!
It's the company's fault for being overly optimistic, with their SG gold pour announcement.
But, when they have used good prudence in most of their exploration and production efforts, the company should not be faulted. It may be helpful to do some better infill drilling to complement future stope development.
The message is clear. Don't promise what can't be delivered on time!
Perhaps management, may tell us, they need to better infill drill, level eight, before they mine.
That's where it appears that the best near term production grades are located.
But perhaps they just need a little better insight?
Some drilling may actually be needed first!
All the best! Java