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North American Gem Inc V.NAG



TSXV:NAG - Post by User

Comment by lucci2005on Apr 06, 2010 11:19am
344 Views
Post# 16960524

RE: RE: parity is Good

RE: RE: parity is GoodI change my view.  The way I see it, parity is not good for NAG.  Here is the reason.  NAG pays the contractors/workers/equipment, etc. in US $.  They then sell the coal in US $.  See my two examples below:


Example #1 (DOLLAR AT PAR)

--selling price = $58 USD
--expenses = $40 USD
--profit = $18 USD

at par, this is translated to $18 CDN


Example #2 (let's say dollar is $1.03 --as in a couple of weeks ago)

--selling price = $58 USD x 1.03 = $$59.74 CDN
--expenses = $40 USD x 1.03 = $41.20 CDN
--profit = $18.54 CDN



So in example #2, NAG makes more by
.54/ton.  Multiply this by the thousands of tons they will produce, and it makes quite a bit of difference.  Even at 8,000 tons/month x 12 months, you are looking at at least $51,840 (and that's just mine #1)

Every agree or will the debate continue???
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