RE:RE:RE:Q2 FinancialsClipper2 wrote:
The (estimated revenue) of 46,731,693 is based on a V2O5 price of $7.
I believe the average will come in closer to $8. We have yet to see any premiums, so we could see V higher than $8.
$8 average V price will increase the revenue to $53,387,078.
Clipper,
So let’s assume Q2-21 revenue = $53,387,078
Your calculation of the average costs for Q2-21 doesn’t change: :
24,122,000 (Q3-20) + 36,231,000 (Q4-20) + 35,354,000 (Q1-21) = 95,707,000 / 3 = 31,902,333
which now represents a cost/revenue ratio of 31,902 / 53,387 = 59.8% which is certainly too low. Have you ever seen a cost/revenue ratio of 59.8% in the financial reports of Largo before?
The cost/revenue ratio for Q3-20, Q4-20, Q1-21 and the average cost revenue ratio for the 3 Qs don’t change:
Q3-20 revenue = 27,474,000 thus cost/revenue ratio = 24,122 / 27,474 = 87.7%
Q4-20 revenue = 42,254,000 thus cost/revenue ratio = 36,231 / 42,254 = 85.7%
Q1-21 revenue = 39,801,000 thus cost/revenue ratio = 35,354 / 39,801 = 88.8%
The average cost/revenue ratio = (87.7% + 85.7% + 88.8%) / 3 = 87.4%
As we now assume Q2-21 revenue = $53,387,078, then the estimated average costs for Q2-21 should = $53,387,078 x 87.4% = $46,660,306
Thus
Q2-21 estimated Net Income = $53,387,078 (estimated revenue) - $46,660,306 (average costs) = US$6,726,772
BTW, a Net Income of US$6.7M is closer to my estimation of Net Income = US$7.6M - 8.5M (with no FX gain/loss expected)