RE:Currency loss Q2ICT1111 wrote: Stan, I've just been taking a closer look at the Q2 numbers. I note that we have a currency loss on conversion to C$, hasn't that trend reversed? Is it possible that the loss of ~1.8m on currency is actually a profit? If this is the case that is a C$3.5m swing........ please put me in my place if I am wrong!
Hello ICT1111. Your conclusion is the same as mine - the Brazil Rias appreciated against the Canadian dollar during Q2, so the translation adjustment reported as a $1,760,000 loss should have fact been a $1,760,000 gain.
This means the Q2 2021 Comprehensive Loss of $1,681,000 reported by the Company on page 3 of the statements is incorrect, and should instead be reporting a Comprehensive Profit of $1,839,000, which I believe is the first ever quarter where the Company has achieved a Comprehensive Profit.
You can confirm this by adding the results from Q1 and Q2 together to reconcile with the results for the 6 months ending June 30, 2021. The Q1 exchange translation was indeed a loss of $1,522,000. If you add a loss of $1,760,000 as reported in Q2, you get a 6 month loss of $3,302,000. The Company instead reports the 6 month number as a gain of $238,000, which is the total you get (allowing for rounding) from combining a Q1 loss of $1,522,000 with a Q2 gain of $1,760,000.
I shared this with the Company on Monday so I am expecting to see a news release soon identifying the mistake and issuing corrected statements, especially as it is a $3.5 million misstatement as you correctly identified.
S.