Eagle Plains Resources Ltd EGPLF

Musings on Terralogic

[NineLives]

In the industry this subsidiary is in the average net income return is 7 to 10% of gross revenue. So if Terralogic reports qrtly revenue of $5 mill and investor would expect to see $350 to $500k net profit. This hasn't been happening and it's hard to get a true breakdown of growth, margins and expenses as it continues to operate a subsidiary. I'm not sure if expenses are related to new equipment being purchased or their lack of meaningful net income is due to their margins not being on the 25% to 30% range which is standard for this industry. 

For myself, showing a profit is a good thing because it reflects positively on management (yes taxes are paid, no big deal) Increasing revenue while showing little profit is hard to quantify. Should margins be raised ? 

It would be great to see Terralogic break free with their own listing, run efficiently with decent margins. There's obviously a need for their services out west as demonstrated by the spectacular revenue increases year over year. JMHO.

[GoldInsect777]

Since Eagle Plains is the largest user of Terralogic's services, wouldn't it stand that the only "profit" that Eagle Plains makes from Terralogic is from work being done for other companies? Otherwise, any "revenue" being made by Terralogic from work on Eagle Plains projects is just money being moved from one part of Eagle Plain's balance sheet to another. 

[NineLives]

Is that true though? Many properties that were optioned out the optionee has opted to use Terralogic services. I've also seen their name crop up when viewing other independent junior miners exploration news releases. If all the work that Terralogic did was for EPL (or most of it) then the cash balance would show a marked decline vs the revenue coming in, due to 80% of it being booked as