UPDATE 1.40pm: Cape Lambert Resources shareholders can expect a bonus payout after the Tony Sage-led company announced it had reached an attractive final settlement with the Australian Taxation Office over a disputed tax bill.
Under the terms of the settlement, Cape Lambert will pay just $2.4 million to settle the original amended assessment of $96 million it received in 2012.
Cape Lambert had already paid $33 million to the ATO in 2012.
Today it announced the $79 million owing (which includes interest accrued on the unpaid $63 million balance) would be discharged with a one-off settlement payment of just $2.4 million.
Cape Lambert said following the settlement, it would hold cash, receivables and listed securities of about $94 million, including $65 million of unrestricted cash.
The company also noted it carried no debt or contingent liabilities.
It would also have $62 million in losses to carry forward to use against future taxable income.
Cape Lambert executive chairman Tony Sage said the company was pleased to conclude the matter and commended advisors PwC and the ATO for finding a way to resolve the dispute.
He said the board would meet soon to finalise plans for a capital distribution to shareholders.
The company would also continue with its share buyback scheme which it began earlier in the year.
“With this now resolved, Cape Lambert intends to shift its management focus to the Marampa Iron Ore Project in Sierra Leone, where it is looking to secure significant investment at project level, and its interest in the Mayoko Iron Ore Project Royalty, which it is looking to sell,” he said.
“The company will be looking to capitalise on funding pressures within the resources sector through the evaluation and advancement of suitable investment opportunities that have been presented to it in recent months.”
Cape Lambert shares were up one cent, or 8 per cent, to 13.5 cents at 1.40pm.