First Uranium Corporation T.FIU

Let's put the guaranteed gold delivery debate to b

[lefmike1]

Attached you will find a cut and paste from the actual FIU GW contract as found on SEDAR .
I have only put areas that deal with the guaranteed gold shipments.,


https://www.sedar.com/CheckCode.do;jsessionid=0000P8ICt21f-rmeyfX74QV5aJ3:-1

What all this means is that following the payment of gold to FN December 31, 2011 the company will only be sending 7% of any gold they mine after that. As an example, had FIU only sent 7% of the est. 12000 ounces it would have been 900 ounces at a cost of roughly 1650-400 = 1250 per ounce total cost 1,250,000 instead they sent 5212 est. which cost 6,515,000 which would have significantly lessened FIU/s Q1 loss I think.......

3(f) In calendar 2010, EMC shall deliver to Gold Wheaton Barbados a minimum of 16,500 ounces of Payable Au (the "2010 Guaranteed Ounces"), such deliveries to be made on a quarterly basis. EMC (as guaranteed by FIU) forthwith without set-off, deduction or defalcation shall satisfy the 2010 Guaranteed Ounces as follows

3(g) In calendar 2011, EMC shall deliver to Gold Wheaton Barbados a minimum of 19,500 ounces of Payable Au (the "2011 Guaranteed Ounces"), such deliveries to be made on a quarterly basis. For greater certainty and without limitation, 2010 Guaranteed Ounces delivered in calendar year 2011, shall not be included as Payable Au delivered to Gold Wheaton Barbados for the purposes of the calculations set forth in this section 3(g). EMC (as guaranteed by FIU) forthwith without set-off, deduction or defalcation shall satisfy the 2011 Guaranteed Ounces as follows

(c) Save and except as provided in section 3(d), Gold Wheaton Barbados is not entitled to any form or type of compensation or payment from EMC if EMC discontinues or ceases operations from the Project. Save and except as provided in sections 3(f) and (g), this Agreement shall in no way be construed or considered a guarantee as to the delivery of any amount of Payable Au from the Project on an annual basis or over the life of the Project.

[elml]

lefmike,I still can not understand the high cost production in Ezulwini mine.According to my limited accounting analysis knowledge and common sense, it shouldn't be that high; as one of our forum buddy says: mining gold from the ground shoud not cost that much digging the gold out from the ground !!!I try to understand the components of the cost of production of gold per ounze with

[lefmike1]

Let's make this as simple as possible,From how I read it  FIU puts everything but the kitchen sink in COS.So if you look at their total ounces sold   you see 12,893    less FN's cut of 5212  you have 7681 that FIU soldNow go to their revenue from gold sold   11,682K add to that proceeds received from FN of 2,096  it comes to  14