CMM P&L Effects caused by Capital Lease Payments for the 4 Trucks we purchased
BLAINE, WA (CCNMatthews - March 14, 2006) - Century Mining Corporation (TSX VENTURE:CMM - News) announces has signed a firm commitment to purchase four new Komatsu HD785-5LC 100-ton haul trucks on a capital lease for C$5.75 million from Komatsu International (Canada) Inc. The purchase price includes tires and commissioning spares.
stockhouse.ca
Don't know the useful life - ASSUME 5 YEARS ....
Cost per Truck:
C$5,750,000/4 = C$1,437,500
==================================================
Monthly Hit - Balance Sheet
1 TRUCK
Lease Payment C$24,000
Credit Cash / Debt Capital Lease Obligation
Monthly Hit - P&L Sheet
1 TRUCK
Depreciation Expense C$22,000
Interest Expense C$2,000
-------------------------------
Total C$24,000
===============================
Both numbers above are WRONG ...
but thats not the point.
The point is to SEE what items in the P&L
are affected and to get a ballpark feel for the real
charges.
2006 Full Year Charges
Depreciation Expense C$616,000
Interest Expense C$56,000
-------------------------------
Total C$672,000
===============================
Math - Depreciation Expense
-----------------------
22,000 per month
7 months
-----------------------
154,000 total 1 truck
4 trucks
-----------------------
616,000 total
========================
2007 Full Year Charges
Depreciation Expense C$1,056,000
Interest Expense C$96,000
-------------------------------
Total C$1,152,000
=============================== |
