RE: RE: RE: Mart's Earnings Explained. Another adjustment that I would consider in your calculations is to take Mart´s participation on the project on a 50% basis. The reason of this is that the excess of Mart´s participation above that figure (up to a maximum 82,5%) is "cost recovery", not a genuine gain, and sooner or later this excess will be offset with additional capital cost.
So, my "hypothetical" Q2 CFPS would be:
Q2 CFPS (before changes in WC, and assuming hedging of the underlift) as per your calculation: CAD 23,7 millons
Less tax impact on a supposed hedge of underlift (CAD 10.5 X 30%): -CAD 3.15 millons
Subtotal: CAD 20.6 millons
Adjustment to Mart´s share in the project (excluding cost recovery): (CAD 20.6 millons / 52%) X 50%: CAD 19.8 millon
Even though the adjustment to take Mart´s share in the project in a 50% basis is not significant in Q2, it could have a greater importance in other quarters (for example, Q1 2012).
Thanks for your effort in claryfing this issues
Fernando