Freeport-McMoRan (FCX)

[eddy2]

https://blueskyuranium.com/assets/docs/financials/2017-Q2-FS.pdf

When one compares a deficit of 25 million dollars too a million dollar company what is this telling you? Now many say or will try to tell you that a deficit is an allowed credit based on uranium found, in this case.

Some will claim it has been piggy backed on another public company's good fortune.

When government claims a deficit it is known as debt owed for money in circulation.

We can conclude then that the deficit is for money raised minus outstanding shares owed back to the shareholders

Let’s say you bought a car that was to be a taxi. You pay your self $2,000 a year in wages and $.30 a mile. All other expenses are coming out of your pocket.

The car cost $10,000

Insurance $2000

The car depreciates a $1000

So you can see there is a five thousand dollar lost if there is no customers. We can also say it’s a five thousand dollar deficit as well.

Now let’s say you did a 100 thousand miles in revenue. You charge the customer $.40 a mile. Your cost per mile is $.30 a mile. So your gross profit is $.10 a mile.

$100,000 times $.10 is ten thousand dollars is gross revenue.

Now deduct administration costs $2000 and another $2000 then your depreciation of a 1000 dollars.
So you see you have made five thousand dollars net.

You then have tax’s of thirty percent giving you about $3,500. oo

That’s fantastic you figure. Let’s take that and leverage it and buy another taxi.

Take fifteen hundred dollars times twenty years and you can buy now two taxi’s.

And make your self $9,000.00 dollars the next year if you can repeat the same thing as you did with the one taxi.

But what if you can’t. Let’s say you satuated your market with taxi’s and you only do another 50 thousand miles keeping all the same expenses.

You may coast along for another five years waiting for the market to catch up to the demands you put on it. You can let go of a driver that will help. You can sell one car and raise the cost per mile you charge the customer if you control all the taxi’s. in the area.

You could aproch your competition and sell your interest or buy his. If a consolation was to take place chances are to get one to agree too the terms the other will most likely have too pay to much for the others interest. In other words the remaining market will have to be divided equally based on asset values held.

As a owner chances are you will pass on the overpayment of assets based on market size too the public. The up side is the sinergy gained to allow fairs to be raised, additional assets sold ect.

In short a deficit is an oversupply of goods and services for the market that is being supplied.