Land holdings and acquisitionsHello fellow Verde shareholders,
If you partcipated in or watched the Q2 Q&A session you will recall some of my questions to Mr. Velosos regarding the capital expenditures made in 2021, looking for him to share some detail as to what land was acquired by the figures disclosed in the financial statements. I asked specifically about the $539,000 spent as "additions" in teh 6 months ended June 30, 2021.
Other than a personal decision not to address any question I might propose as a shareholder, why would Mr. Veloso refuse to answer the question above? Our CEO regularly draws our attention to the limited capital funds to which the Company has access and how they must be preserved to fund the expansion of the business, especially the Plant 2 construction.
We also know from the 2020 Annual Information Form on the bottom of page 14 that "the Company is considering the purchase of all properties within their permits" so as to avoid the legal requirement to compensate the land owner for the impact of digging a mine on their property.
I have not yet been able to determine which of the permits now has its related surface land owned by the Company, although I have traced the acquisition of the land on which Plant 1 was built. It appears that some of the land comprising Pits 1 and 2 was purchased, and perhaps the Company had the opportunity to acquire some of the permit lands at bargain prices when a landowner wanted to sell for other reasons.
In any event, at June 30, 2021 Verde had $1,672,000 of undepreciating land on its balance sheet. I hope the Company will see fit, in time, to share with those of us who own a prorata share of that land just exactly what it is that the Company bought and how much they paid for it. It might also be interesting to find out who they bought it from - who was on the other side of the acquisition transaction, and how was the fair market value of the acquisition determined.
Cheers,
S.