Hi Tad ....
You wrote ...
>>>>>>>>>>>>>
Thanx for pointing something out to me ,..... I hadn't noticed an error ...... and corrected it for you.
stockhouse.ca
As noted, I had the intention of posting "non-operating and derivative losses", sorry for the ommission
>>>>>>>>>>>>>
Actually MY POST was egregiously in ERROR .... here is
what I posted ...
>>>>>>>>>>>>>>>
Additionally, we still have DERIVATIVE LOSSES of 1,293,463 sitting on the balance sheet in the
Current Liability section.
This loss will be taken into the P&L in 2006.
>>>>>>>>>>>>>>>
In fact, $1,293,463 was booked to the P&L and I
am greatly relieved to now see this. If you stand back
and look at it .... ITS A PRETTY DUMB ERROR ON MY
PART ....
For folks like me that are financially illiterate (challenged)
quarterly and annual presentations like this one ...
are really helpful ... and probably 9,999 out of
10,000 companies do it this way each quarter
... (I picked this at random) Please CLICK on the link ....
biz.yahoo.com
Scroll down to the Balance Sheet and P&L section ....
Granted, I might still misread it and subsequently post
something incorrectly, but someone would
be able to quickly point out my error ...
i.e. Everyting is laid out so that even a moron like
me has a shot at understanding it ...
Additionally (I am also WEB CHALLENGED) I don't need Edgar(sec) or Sedar or some other web site by which I have to
sign-up ---- to see something.
As I think about it .... there is another
upside .......
note their P&L section
QUARTERLY ....
General and admin 2,673 2,457
Exploration expense 2,168 1,208
Were someone on stockhouse to project a (CMM) P&L, they
could simply rip-off the P&L format and blowout
their forecast using the same line items.
i.e. their spagetti sause would have all the ingredients ....
(and not just Gold Sales Price - Direct Cash costs to
dig it out ....) / outstanding shares ....
I did take Accounting 101 and Fiance 101 way back
when. I failed miserably. And I remember one of
the test questions.
The Professor gave us a P&L with many line items
and then asked us to deduce Cash Flow from Operations
just based on the P&L. I got it WRONG and rememeber
what he said.
It was: Cash Flow equals Earnings After
Taxes plus Depreciation Expense. (meaning net earnings
plus all non-cash expenses.) If I apply that rule
to the P&L in the link above then it resolves to
General and admin 2,673 2,457
Exploration expense 2,168 1,208
are REAL cash outflows as well as being REAL expenses.
HEDGING .....
you provided 3 great examples ... and I don't have
a clue as to the HOW and HOW MUCH the gains or losses
with respect to each example would be ....
(if its OK with you I will cut and paste your
examples to several boards here on SI and see
what comes up)
I've dumbed down hedging to the following ....
(in those cases where a loss is involved ....)
(a) Its NOT a real loss ....
(b) It IS a TRUE lost Cash Flow .....
(c) And in my mind whatever is booked to the P&L
as a LOSS is really a MEMO item ...
to advise the reader ...
Where these losses get *hurtful* is as follows:
(I'm gonna machinate the correct sequence of
P&L line items to make this clear)
(1) I have 5 million in EAT (earnings after taxes)
but BEFORE hedging loss
(2) A 5 million hedging loss .....
(3) (1) - (2) = $0
When I attempt to explain (from my point of view) that
we really booked a $5 million profit .... the ususal
remark is .... and did you work for Enron?
Where is this coming from?
I have dragged 6 kicking and screaming and *unwilling* folks I know into this puppy (CMM). Why? It was the right thing
to do. I intimidated them with the thought that gold is not a commodity or trinket metal but in fact a currency, moreover, the FIRST currency ..
Which lead to .... their purchase .... which LEADS TO ..
Irrespective of how far and how fast CMM has come ...
(only YOUR GOD knows (for sure) how much gold
we ACTUALLY are sitting on)
the numero uno topic is gonna be that hedging loss ...
I get (am) sick just thinking about it ...
and at end the conversation will become .... bad, bad, John .....
QUESTION ....
What is the potential future "in stock" payments for
May and July all about?
.... as I recall .... 16 million shares .... or am I blundering again? 8 million shares in May and
(was it) 8 million shares in July ....
does that mean we owe someone (16 million * what? 1.50)
or $24 million for something or other ....
AR/INVENTORY
I was hoping the $4.0+ million was ALL INVENTORY.
(I assume the WORD inventory MEANS - gold we produced
but had NOT shipped as of year-end.)
THE BENEFIT ...
The reason I was hoping it was all inventory was because
should there be a BOO-BOO in 1st qtr production levels,
(i.e. broken axle, wrong type of diseal fuel, whatever)
that would give CMM wiggle room in terms of selling
to their budgeted # of oz .... even though current production
was down for a while due to some problem or problem(s).
regards,
John McCarthy |
