gba trading at a 43% discount to mmr, page-21

GBA does not have tax free status. The benefit of our holding in MMR is that GBA will receive any in-speies distribution or dividend from MMR tax free and any in-species shares will be at market value.

For example, if drilling sucess in PEP11 results in an Advent share being woth $10, then GBA's cost base will be $10. Therefroe, GBA will pay tax only if the share is sold over $10.

However, this will mean any dividend paid by GBA will be unfranked and full tax to the individual will apply at their marginal tax rate IMO.

The benefit may be long term, in that GBA may realise a significant profit, form another subsidiary entity (or take on another investment) and demerge it to shareholders; thereby defering tax until the holder sells. Many interesting corporate possibilities and only time will tell. First we need to drill a hole to find out what's there. All IMO.

Cheers