RE:Revenues / lb vs Average V2O5 price /lbkha341 wrote:
According to the MD&A the average price per lb of V2O5 = approximately US$5.37 for Q4 2019. So, after deducting the 7.5% Glencore discount we would come to US$4.97/lb which should logically represent the revenues per pound for Q4-19. And yet the MD&A indicated the Q4-19 revenues per pound to be only US$4.09/lb which was US$1.28 (or ~24%) less than the average V2O5 price (US$5.37) of the same quarter. Not sure why. Could it be that the G discount was higher than 7.5%? To bring US$5.37 down to US$4.09 you must apply a discount of about 24%. So weird
Also as per the MD&A the average price per lb of V2O5 = approximately US$24.53 for Q4 2018. The revenues per pound for Q4-18 = US$24.19 which was only US$0.34 (or ~ 0.014%) less than the average V2O5 price (US$24.53) of the same quarter.
The whole thing doesn't make any sense to me at all.
kha
It's the remeasurement, and the way they report that is making it so difficult to understand, and until they explain how it is calculated we will never be able to get the numbers to balance.
Calculating 6.6m pounds of production multiplied by 5.37 avg price of vanadium we get CA$46.7m which does not include the Glencore discount. After deducting the 13.5m remeasurement we get 33.2m.
They reported 34.1m revenue and the difference could be the 480mt of HP powder.
That's as far as I can go. I don't know how they deduct the Glencore discount, and it's impossible to understand, no matter how hard we try.