Electra Thank you for confirming the matter of the write of on the low grade stockpile. To be clear it is reported in Silver Lakes 2013 financial statements in note 9 as a write down of $$30.6million dollars and they note there was no write down in Integra's 2012 financials. Based on your calculation of a fall in price that's 102,000 ounces in the stockpile.
The financials show a loss for Integra post acquisition of $34million of which $30.6m is directly attributed to the shift in value which quite properly one could argue should have been reflected in Integra's 30 of June 2012 Financial Statements. The price of gold at June 2012 was $1600 and the price of gold at June 2013 was aprox $1400.I don't know were your figure of $300 comes from.
Inventory must be valued at the lower of cost or net realisable value. Based on your comments you are saying it cost aprox $1600 per oz to produce that inventory...that's average cost.WOW that's expensive rocks and even blind freddy can see in your numbers that its uneconomic. There was indeed a lot written on Hotcopper pre-merger regarding the capitalising of expenses relating to that stockpile and recognition practices relating to this low grade stock pile. Since you are so precise on numbers kindly confirm the grade ,tonnes of the stockpile.
In regard to your comments that construction was on time on and on budget budget, Integra had continuing issues with screens and shafts and bearings .The performance is no doubt reflective in the trading loss of Integra .
Its interesting that SLR on merger did not retain Rohan. The relervance is that the company and its PR have repeatedly asked the question ,what do you think of our new management and have not provided any background to the question .Next we will reflect on Rohans past performance as a managing director and his last drilling program...mention of this is missing in the announcements regarding his appointment and yet its most recent and job relevant activity. Very very happy for you to add contrast and commentary Electra.
We need management that can perform and the implied PR is claiming he can. Currently Im not seeing the results on what is a first class gold project.
MYG Price at posting:
2.8¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)