RE:RE:RE:Q2 Results1/ bad news indeed. Especially this is a big surprise “foreign exchange and derivative loss of $5,753 mio”. Don’t quite understand where it comes from and what it means for the future.
2/ but looking at the Fundamentals it is not too bad:
· P6. “The Company produced 807 tonnes of V2O5 in July 2017.” ... “In Q3 2017 the Company expects to maintain the higher metal recovery levels achieved in Q2 2017 and to further improve the performance of the deammoniator in order to achieve the targeted production level of 840 tonnes of V2O5” => For Q3 this could mean >2.450 Ton.
· P4. Operating cost. That is 3,56 which means that with a production of >2.450 Ton it would be much lower.
However, on page 22 we read “Estimated Annual Average US$ Cash Operating Costs Per Pound US$3.81/CDN$5.20”. It means that the cost would raise in the next quarters versus Q2. Strange or lapsus.
· The V2O5 price has continued to recover, with a price at June 30, 2017 of between US$5.40 and US$6.00 .... As at the date of the MD&A, the market price of V2O5 was in a range of US$9.00 - US$10.00 per lb.
· P22. “CAPEX of approximately $4.5 million is expected to be incurred over the remainder of 2017 to sustain current operational capacity”. For this ? “the Company is proceeding with the installation of the necessary equipment to handle and pack V2O5 powder”
Still many questions. Market will react negative I fear. But perhaps some investing funds see some light. And before Oct. 11 a new capital raise !?
Conclusion can also be, with Arias owing more than 70% of the shares, that they don’t worry about short term results and look to the future, making from 2017 a transit year.