Gold price, page-11684

A few more interesting items from the Annual Report.

Pg.62 on Sensitivity Analysis:
A 10% strengthening of the Real against USD as at year-end would increase BDR's profit by $4.1M, and vice-versa for a weakening Real. This seems to contradict SJ's point that profitability (due to increased AISC) was adversely affected by the strengthening Real. I'll need to get my head around how the full calculations work.

Pg.66 Note 8:
Finance income (foreign currency translation) recognised directly in equity, net of tax is $37.3M compared to a charge against equity of $46.5M in 2015. Looks like good news, but what is it and how is it different to the forex gain of $10.3M? If it's recognised net of tax, then why not reflect it in the P&L?

Pg.68 Note 10
No further info on the mysterious $53M worth of non-current inventory.
1. If this balance sheet "asset" keeps increasing over the years, will it eventually become a P&L time bomb?
2. BDR reported a tax payable of $8M in 2016 as compared to a tax benefit of $7M in 2015. Just wondering that, given the tight cash flow then, if a chunk of the $53M inventory had been written off in 2016, BDR might have changed the tax liability to a further tax benefit. The auditor or tax accountant would have discussed this option with SJ and the CFO, I suppose.

Pg.70 Note 13
$27.2M of the $29.4M in Trade Receivables is VAT tax recoverable from the Brazilian Federal Govt.
And an impairment loss of $1.7M in 2016 as compared to $0.7M in 2015.
Question marks for me are that (1) the Brazilian Fed Govt. is not exactly flush with funds, so how much of the VAT taxes are actually recoverable, and (2) even if they all are, is there an impairment time bomb ticking away in the $27.2M?

In previous years, I had traded (in terms of months, not days) BDR, so didn't read the Annual Report in such detail in the past. As I'm now holding long-term, so need to do my homework. Cheers. R.