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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.
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Tags:
Firestone, Firestone Diamonds, Lesotho, Liqhobong, Liqhobong mine, Rapaport News, tax, tax credits
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