Advanced Search

Firestone Tax Credit Enables Profit

Nov 2, 2016 10:43 AM   By Rapaport News
Email Email Print Print Facebook Facebook Twitter Twitter Share Share

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
Similar Articles
De Beers 600De Beers Buys Peregrine Diamonds for $81M
Jul 19, 2018
De Beers’ Canada business has agreed to acquire exploration company Peregrine Diamonds, which owns the promising
© Copyright 1978-2018 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.