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Firestone Tax Credit Enables Profit

Nov 2, 2016 10:43 AM   By Rapaport News
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RAPAPORT... Firestone Diamonds said a $22.6 million tax credit helped the company post a profit in fiscal 2016.

The company swung to a net income of $13.6 million over the 12 months to June 30, resulting from the recognition of tax credits related to losses incurred in prior years. Firestone would have made a loss of $9 million excluding the tax credit, compared with a $10.4 million loss a year ago.

The benefit was recognized in fiscal 2016 because of “reasonable grounds” to expect a profit will be generated in the future to offset tax losses brought forward, Firestone said. The company expects to deplete the tax losses over the next four years, based on current forecasts.

The group made no diamond sales in fiscal 2016 as it is still developing the Liqhobong mine in Lesotho, which reached 85 percent completion at the end of June 2016. The company aims for the mine to produce 1 million carats per year.
Tags: Firestone, Firestone Diamonds, Lesotho, Liqhobong, Liqhobong mine, Rapaport News, tax, tax credits
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