RE:RE:RE:RE:RE:RE:RE:RE:RE:Down 11.6% in Swedennyoni wrote: Yes jeff, there is no way of telling the true inventory value.
It gets a value in the year-end accounts but we don't know upon what basis.
It could be valued at cost of production, in which case it's well undervalued, or it could be valued at carats times average price per carat achieved during the year in which case it's still probably undervalued if there are more than a few biggies therein.
In fact the inventory stones do not even attract royalty because that is worked out as 10% of sale price, which of course they don't have yet until they're sold.
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They do declare inventory $ wise but how do you put a price on stones and ore you have not even sold yet . That would seem rather open too whatever # you wanted to pull out of a hat . Right now they say they are holding inventory of $30.336 million , last Q it was 30,412 and end of year 2014 was 32,019 million. I wish there was a way to really know what that all meant . Obviously last Q they were holding much more than just $30 million (stones, ore and whatever) in inventory when you pull off a $69 million EST the following Q. lol