Tax loss carryforward - Forgotten assetIt is worth noting that Dundee had, as of December 31 2023, operating loss carry forwards of $511,326,000 as well as capital loss carry forward of $305,885,000.
Not too sure if their gains on investments are applied against their operating loss or against their capital loss, however, one could assume that gain, if any, from TauRx would be tax free. As a shareholder, I much prefer to see Dundee realize this gain instead of spinning off TauRx shares to current shareholders, even after an IPO upon a succesfull approval.
Thinking about it, for the first time since he is back at the helm, Jon has excess cash on the balance sheet to invest in mining companies. While I would love to see a buyback to shrink the float and buy the shares at a discount, the market offers right now a lot of opportunities for investment as juniors appear to be starved of capital. As I believe that Jon and team expertise is top notch (why else investment in Dundee ?), I do not mind if they invest this capital in undervalued juniors. Gee, if they score another Reunion or Magna type of investment, this would be much better than buying back their own shares.
So, adding to my position whenever I can,
GLTA