....also, I am not a trained Accountant however, I am puzzled by Note 3 to the HY...
NOTE 3. OTHER INCOME AND EXPENSES
[...]
Notes:1 During the period, the Company’s joint venture partner sole-funded certain expenditures of its joint venture company, PHT, totaling A$268,870, of which A$134,435 (being50% of the expenditures) is deemed to have been contributed by Cradle and has been recognised as a gain through profit or loss. The Company continues to own 50% ofPHT.
Firstly, CXX had the cash there to meet this PHT expense, so why would Tremont want to be this benevolent - especially when CXX is retaining its 50% holding of PHT??
Secondly, if Tremont is funding both their 50% share and CXX's 50% share of PHT's expenditures, how can CXX then claim their share (AUD$134,435) as a "gain" in Income?
I acknowledge that it may be a cash saving for CXX - but wouldn't that make it a "liability" (owing to Tremont)? Or, as I suspect, is it part of a pre-takeover dilution (as per the bottom of page 2)?
In any event, I don't see the AUD$134,435 as a "gain" in Income. IMO, all it has done is put CXX in Tremont's pocket!!
CXX Price at posting:
10.0¢ Sentiment: None Disclosure: Not Held
