This is Mr. Jones' response to my request for clarification on how the $20MM and $70MM in forward sales would be reported.
The gold sales transaction of $90M consisted of a $20M transaction in February 2015 and two transactions totaling $70M that were closed in April 2015. The transaction that was carried out in February was reflected in the Q1 2015 financial statement, which is available on our website. This can be used as a reference for understanding how the Q2 transaction may be reflected in the Q2 financial statements. These will be published in August. Unfortunately, we cannot discuss the accounting treatment for transactions that have not yet been discussed in financial statements.
While the accounting for a transaction is dependent upon the individual facts and circumstances, it may be helpful to take a look at how other companies, such as Teranga Gold or Hudbay Minerals, have accounted for similar transactions.
Regards,
Martin Jones
On page 15 of the Q1 financial statement according to Mr. Jones 2nd reply.
