RE:RE:What I’m trying to understandlorang,
I have addressed some question you raised in a previous reply to Pierre. Yes, the situation is as clear as mud. I would suggest that you raise your question directly with Paul Huet via Buchanan to see how they would explain this. During the meantime I have the following comments. Hope that they are useful to you.
- If you just multiply the oz with the PoG then you would get millions of dollars. This is based on the assumption that the inventory would be all available, say in Q4. The current PoG is about 1500 UDS/oz, but apparently RNC hedged the sale price at 1339 USD/oz (you should confirm this with RNC).
- Even if the realized price is low, the value is still enormous (28,799 oz x 1339 x1.25 = C$48M which is no chump change. You need also check out if the cost to "mined" (but not yet producing the dore bars at the exit end of the mill, or at least not yet sold).
- The cost = $17.53M (as indicated in your early post...may have been "booked" already (where did you get the number?), since companies may be allowed to claim the actual expenditures, but they don't have to report the inventory value if they have not actually received the money (again RNC should have the details).
GH11
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lorang41 wrote: Is’nt 28,799 ounces of gold tied up in Inventory equal to about CDN$ 55,000,000 of cash when it will be sold ?