Today's News Release
Says nothing. The last three paragraphs are add-ons, not complete (misleading) and irrelevant to the main story.
"First Uranium recently announced that it was restructuring its business to focus on gold production.
I think they said they were going to focus on the most profitable areas of the Ezulwini mine. They are already focused on gold production.
It said a new operating plan could result in the cutting of almost half its workforce at its Ezulwini operations.
True. But wasn't this article about MWS? The cuts may occur if the union cannot increase production.
But the company said its MWS operation would not be impacted by the changes."
The main story is old news (reported in the 2012 Q2 financials) and again is misleading when read in isolation. In fact the company kept more money in its pocket than is projected for Q2. These "losses" are the fair value sum of what is owed to FN over the life of mine as per the goldstream contract. Due to new accounting rules these monies are recorded as debt. As the POG increases (or drops), the total amount owed to FN will fluctuate accordingly....or as MWS increases production, the 25% LOM owed will increase proportionately. As FIU pays their 25% to FN, over time, this amount recorded as debt will decrease.
"Under Canadian GAAP, the Gold Stream Transactions, which the Corporation has entered into with Franco-Nevada (FN), have been considered to have two elements for accounting purposes. The guaranteed ounces included in the gold delivery schedule of both MWS and Ezulwini Mine to FN were treated as derivative liabilities "
https://www.firsturanium.com/sjfu/action/media/downloadFile?media_fileid=1788