OTCPK:IVWFF - Post by User
Comment by
coach247on Sep 21, 2006 12:37pm
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Post# 11397505
RE: IVW Operations Progress Update
RE: IVW Operations Progress UpdateHi GBH!
I do not consider myself an expert on financial matters by any stretch, but it is my understanding if they book capital expenditures for equipment, it will not impact on the earnings at all, expect as a non-cash item to expense the ongoing depreciation. The increased production from the mine will definately appear on the top line. And as I have pointed out here before, the fixed operating costs that matter will represent a smaller item as expressed on a per ton basis, so in effect the production rise generates lower unit costs. Therefore I suspect that we are in fact in line for a much stronger quarter. When you have a smaller mining operation in the early stages, it is normal to have a bad quarter and then subsequently rebound with a stronger quarter as management puts in place improvements. Anyway, I remain optomistic.
cheers!
COACH247