OTCPK:MEAOD - Post by User
Comment by
JRaffleson Feb 02, 2014 6:43am
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Post# 22163125
RE:Financials
RE:Financials Derivative P&L charge $836,653
I was initially surprised to see this.
However, it related to the convertion options in relation to the $10m debenture. Explained in Note 8 to the accounts.
The cost to the company of conversion depends on the SP at conversion date. I have not gone into the fine print, but it seems that the conversion cost to the company will be higher when the SP is low .... another good reason for the price to rise for existing shareholders.
Exceptional Cash Outflows
- Note 13 - $1.9m was paid on Dec 9 2013 in relation to the Restoration Plan guarantee to Quebec Gov. --- It is not clear whether $5m cash referred to by RP was at Q3 accounts or currently after payment of this guarantee.
- $3.6m Provision for Compensation. No settlement has yet been reached re the 2009 fatalities. The cash flow has to budget for a settlement at some time.