Ivernia Inc IVWFF

RE:No response from investor relations

[SergeGodin]

Leadhead,  Good question.  I wondered the same thing.  I assumed that "Selling and Distribution" referred to the transportation of the concentrate, and that previously this had been included under "cost of sales".  My guess is that this number would make sense, roughly about $8M for the quarter (including the cost of monitoring/reporting etc.).

They changed CFO's recently and this is the first quarterly results published by the new CFO.  Maybe he just choses to do it differently?

I answer to your questions, I think the most likely explanation would be:


a) Yes, these will continue in future, and
b) They were previously included in COGS, so they are not a new expense, just a different categorization.

If you look at the numbers, it sort of makes sense.  Back in 2010, in the last full quarter of operation, COGS + Administrative expenses was about $30M for the quarter, with revenue of $38M (rough numbers just from memory).

You would think that distribution/transportation costs would have gone up with the new ministerial conditions, so add a few $M to that, and that's exactly what you get when you add COGS, "Selling and distribution", and Administrative.

With things operating (hopefully) a bit more smoothly and efficiently now, one would hope that they can contain costs b/w $32M $34M for the quarter, with revenue of $38M - $40M (higher lead price later in the Q), so perhaps income of somewhere between $4M and $8M for the Q.

If you really want to get to the bottom of this you should pick up the phone and call the CFO.  Investor relations never does anything useful.


- Serge