Lee Cooperman Lee Cooperman
So, you're saying, well that’s committed, that’s not committed as to price?
Paul Vollant
No, the volumes are committed, but the price will be finalized at the time of delivery.
Lee Cooperman
Would you expect that price to be higher or lower than the spot market currently?
Paul Vollant
Well the price would be based on the spot price at the time of delivery. So depending on where the prices are, let's say in June for the June deliveries, we will calculate the actual invoice price to the customer.
Lee Cooperman
I think it was a number of 6.88 you mentioned as the current price. Is that correct?
Paul Vollant
Yes, that is the average price of the Metal Bulleting for the European V2O5, which is our main benchmark.
Lee Cooperman
The second question maybe it is directed to Ernest. Can you just take me through the fully diluted share account and how you get there? I guess there was a very major increase year-over-year in diluted shares almost 100 million, and I don't know if that's just due -- I don't think the stock went up that much. So, that wouldn't be the result of that. Was it to large increase in diluted share count? And what is the fully -- is the 624 million an accurate portrayal of the fully diluted share count presently?
Ernest Cleave
So, let's deal with the 624 million first. 624 million is based on the treasury stock method. So, I give you the fully diluted just on an absolute basis is 676 million, which breaks down to shares of 562 million, there is about 2.5 million RSUs, options just 7 million and warrants 104 million. Then on the fully diluted, it's only a function of what's happening on a particular quarter in terms of where we are -- where we've been in the cycle. But on an absolute basis, we're still pretty much where we've been since last year. So, we added it all in, I think at one stage we were sort of 650 million, but we're 676 million right now. So, I think it's been relatively consistent.
Lee Cooperman
As a rough idea, do you have any recollection if in fact, we got the 676 million shares, how much money that company would take in for the RSUs, the options, the warrants, were all exercised?
Ernest Cleave
The biggest portion is the warrants, the warrants just shy of 104 million and the exercise priceis about 0.41 cents -- about 0.41 in Canadian for all of those, if you were to bring them all in there.
Lee Cooperman
Okay. That's close enough. Okay. Then can you address the ForEx loss? Is that the result of a change in the U.S. dollars versus Canadian dollar or the Brazilian real? What is the currency that we should be watching?
Ernest Cleave
Yes, that's a great question. So interestingly, there are really two impacts, and you can -- if you look at, I believe it's 116 in our financial disclosures in the financials, you can see we've had two different impacts. One was the impact in Brazil, which was negative, and the impact in Canada, which was positive. I’ll explain both. The negative adjustment in Brazil was related to the revaluation of the Glencore obligation. So the amount of money that we're paying in a few days was 64.4 million, actually gets revalued in the Brazilian accounts and that gives rise to a loss if Brazilian real is deteriorating.
Conversely, on the Canadian side, our U.S. dollar investments increase proportionately with the strengthening of the U.S. dollar. So the net of the two was still a loss but that impact in Brazil is not going to go away as we pay down this obligation to Glencore in a couple of days. And you shouldn't see such large FX variances but they're really booked variances as we revalue those dates.
Lee Cooperman
On the balance sheet you had CAD206 million of cash. Of the 64.4 million you’re paying out to Glencore are in U.S. dollars or Canadian dollars?
Ernest Cleave
So that's U.S. So what happens is we have a 64.4 million owing to them. They owe us from April sales of US$7 million. So that's a normal receivable to the company. So the net is 57 million.
Lee Cooperman
So US$57 million, so roughly speaking, I just multiply it by 1.4. So the cash position of 206 million be reduced by the cash payout. And then...
Ernest Cleave
So after the Glencore payment, you'd be left with about US$82 million -- $83 million, so I mean if you deduct it till the date of 25 million, it leaves you with about $58 million net U.S. cash after the payments.
Lee Cooperman
Based upon your committed sales and current price levels and your cost of production, I assume you would expect to generate cash this year?
Ernest Cleave
Actually we're going to be flat because of the impact of building the inventory over that two month period, that May, June period. So for the remaining period of sort of eight months, May through December, we’re going to be flat to slightly negatives. So we're going to be ranging in this 50 million on a U.S. cash range. So 58 million will probably be at high. But we're going to be in and around the mid to low 50 million in cash over the remainder of the year.
Lee Cooperman
And that's after paying back the loans that you took out earlier this year. Correct?
Ernest Cleave
That's net, so yes.
Lee Cooperman
But the 50 million would be after allowing for the repayment of those loans.
Ernest Cleave
Yes. So it’s net, so it's cash, the [24 million].