2 thoughts on “Update No. 324 – as at COB 30/06/19

  1. Lee says:

    Hi Tony. Thanks for the update. With respect to the IRR you calculate on LGD for a low taxation situation how did you calculate 26%? I just can’t seem to get to this number. By the way I’ll be visiting Kangaroo Island in a couple of months. If the wharf has been approved by then I’ll be sure to bring my hammer and a few nails to help speed things along.

  2. tony says:

    It was just (39.5c/38c)^6 = 26.15%. It’s a 3.95% gain to the zero taxation owner, so with 2 months to go (roughly), the annualised return is 26%. at 37.5c, it’s about 36%.

    Dependent of course on being a zero tax situation. If you’re even paying 15% marginal rate, the IRR changes significantly – Tony

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