RE:RE:REVENUES ARE THE CULPRIT You have probably not got the point which I was trying to make & which has got nothing to do with loss of production.
With the same production & costs that TV achieved in 2018, had TV realized a price of $1.3254/lb instead of $1.1593/lb that they achieved, over sales of 403.3 million lbs, additional revenue generated would have been $69 million and the adjusted earnings for 2018 would have jumped from $0.04/share to $0.13/share.
Further, if Smelting & Refining costs had been better negotiated and had been in the range of $400/metric ton instead of $608.17/metric ton that TV actually paid (in my earlier mail, due to a calculation error, I had mentioned this figure as $466/metric ton), this would have added another $38.2 million to the net revenue of TV and adjusted earnings for 2018 would have jumped further to $0.17/share.
Therefore, Glencore paid TV $107.2 million less that what they should have paid under fair revenue arrangements.
Just imagine what would have been TV’s share price today and the market’s confidence level in TV today had adjusted earnings for 2018 been $0.17/share instead of $0.04/share.