Mexus Gold US (MXSG)

[8thaero]

Not even close.to SEC test mine GAAP. Try new own fantasy rules again


gitreal Member Level Tuesday, 03/24/20 04:06:26 PM
Re: None 0
Post #
36504
of 36508 Go

"That does not address the issue of how PT calculates his fantasy cost per ounce. Try again."

EXACTLY as you say he mustn't. Profit above all cost per time period. PRECISELY as explained for years allowed by a test miner to recoup development and exploration you falsely simply ignore, make up own rules all need not follow. Is NOT all in cost over a longer term test miners are not even allowed to claim against no resource. Will appear as profit or loss per share PPS is usually based on by some X factor.

GRC 1st 10K in production El Aguila one year planned open pit operation prior underground La Arista tunnel.

Operating Activities

We declared commercial production at the El Aguila Project July 1, 2010. Since declaring commercial production we have produced 10,493 ounces of gold at an approximate average cash operating cost of $217 per ounce. OUR CASH OPERATING COST IS A NON-GAAP MEASURE calculated in accordance with the Gold Institute’s standards. See, “Non GAAP Measures in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation” for more information. Power is provided by diesel generators at the site.

10K on 1st full year commercial production

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2011


Item 7 Management discussion
Commercial Production

During 2011, we produced a total of 66,159 ounces of gold equivalent from the El Aguila Project at an approximate AVERAGE CASH OPERATING COST OF $136 PER OUNCE, net of by-product credits. (See, “Non GAAP Measures” in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation for more information.) We processed an aggregate of 214,215 tonnes of ore with an average grade of 3.43 grams per tonne gold and 357 grams per tonne silver. See the table titled “Production and Sales Statistics—El Aguila Project” in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation for detailed information regarding our production statistics. An anomalous storm in April 2011 flooded the lowest levels of the La Arista underground mine which negatively impacted our mining operations for approximately two months.


No Proven or Probable Reserves

We have not yet demonstrated the existence of proven or probable reserves at our El Aguila Project in Oaxaca, Mexico or any of our other properties. In Guide 7, the SEC defines a “reserve” as that part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination. Proven or probable reserves are those reserves for which (a) quantity is computed and (b) the sites for inspection, sampling, and measurement are spaced so closely that the geologic character is defined and size, shape and depth of mineral content can be established (proven) or the sites are farther apart or are otherwise less adequately spaced but high enough to assume continuity between observation points (probable). Reserves cannot be considered proven and probable unless and until they are supported by a feasibility study, indicating that the reserves have had the requisite geologic, technical and economic work performed and are economically and legally extractable.

We have not completed a feasibility study with regard to all or a portion of any of our properties to date. Any mineralized material discovered or produced by us should not be considered proven or probable reserves. As of December 31, 2011, none of our mineralized material met the definition of proven or probable reserves.

For the year ended December 31, 2011, we recorded revenues of $105.2 million, mine gross profit of $87.2 million, net income before extraordinary item of $60.1 million and net income of $58.4 million. We produced a total of 66,159 ounces gold equivalent for the twelve months ended December 31, 2011 AT A CASH COST OF $136 PER GOLD EQUIVAVENT
OUNCE. Precious metal gold equivalent is determined by taking the silver payable metal ounces produced and converting them to the dollar equivalent of gold by using the gold to silver average price ratio. The gold and silver average prices used are the actual metal prices realized from the sales of our metals concentrate. (Please see the section titled “Non-GAAP Measure” below for additional information concerning the cash cost per ounce measure.)

Exploration Stage Company

We are considered an exploration stage company under the SEC criteria since we have not demonstrated the existence of proven or probable reserves at our El Aguila Project in Oaxaca, Mexico or any of our other properties. Accordingly, as required by the SEC guidelines (see Note 1 to the Consolidated Financial Statements) and U.S. GAAP for companies in the exploratory stage, substantially all of our investment in mining properties to date, including construction of the mill and mines, have been expensed and therefore do not appear as assets on our balance sheet. We therefore also expensed construction and development expenditures in 2011 related to the La Arista underground mine. Certain expenditures, such as expenses for rolling stock or other general purpose equipment, may be capitalized, subject to our evaluation of the possible impairment of the asset.

Our characterization as an exploration stage company regarding the treatment of construction and development expenditures as an operating expense rather than as a capital expenditure, has caused us to report larger losses in 2009 and 2010 and lower net income in 2011 than if we had capitalized the expenditures. Additionally, we will not have a corresponding depreciation or amortization expense for these costs going forward since they are expensed as incurred rather than capitalized. Although the majority of the capital expenditures for the El Aguila Project were completed between 2007 and 2010, we expect underground mine construction to continue in future years. In comparison to other mining companies that capitalize development expenditures because they have exited the exploration stage, we may report larger losses or lesser profits as a result of this ongoing construction, which will be expensed instead of capitalized for accounting purposes.

We expect to remain as an exploration stage company for the foreseeable future, even though we have reached commercial production. We will not exit the exploration stage until such time, if ever, that we demonstrate the existence of proven or probable reserves that meet the SEC guidelines. Likewise, unless mineralized material is classified as proven or probable reserves, substantially all expenditures for mine and mill construction have been or will be expensed as incurred.

Significant Accounting Policies

Exploration Stage Company: Despite the fact that the Company commenced production in July 2010, it is still considered an exploration stage company under the criteria set forth by the Securities and Exchange Commission (“SEC”) since it has not yet demonstrated the existence of proven or probable reserves, as defined by the SEC, at its El Aguila Project in Oaxaca, Mexico or any of its properties. As a result, and in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for exploration stage companies, all expenditures for exploration and evaluation of the Company’s properties are expensed as incurred and unless mineralized material is classified as proven or probable reserves, substantially all expenditures for mine and mill construction have been and will continue to be expensed as incurred. Certain expenditures, such as for rolling stock or other general-purpose equipment, may be capitalized, subject to evaluation of the possible impairment of the asset. The Company expects to remain as an exploration stage company for the foreseeable future, even though it has reached commercial production. The Company will not exit the exploration stage unless and until it demonstrates the existence of proven or probable reserves that meet the SEC guidelines."


So one more oddball user meaningless post

1manband Tuesday, 03/24/20 10:44:14 PM
Re: saildone post# 36513 0
Post #
36514
of 36514 Go
Nope. Sorry, but all the toxic death spiral lenders operate in the same way. That includes JNJ, Power Up, and JSJ.

Read the complaint - the details in there prove it.

https://www.sec.gov/litigation/complaints/2020/comp24779.pdf

They are acting as unregistered brokers. And all of them are likely waiting for the SEC to show up at their door


Read complaint ( did you) and understood? It penalizes the toxic lenders poor fellers. No mention of the issuing corporation. And I aint neither! Mexus used any such funds wisely and paid the price to achieve commercial production announced to SEC on 8 March. Proves there are REALLY a few ways to get that done as I have mentioned. NOTE: Last sentence AND FOR THE PROTECTION OF THE INVESTORS. WE'NS!

"Penny Stock Bar Permanently restraining and enjoining Keener from participating in the offering of any penny stock, including engaging in activities with a broker, dealer, or issuer for purposes of Case 1:20-cv-21254-XXXX Document 1 Entered on FLSD Docket 03/24/2020 Page 11 of 13 12 issuing, trading, or inducing or attempting to induce the purchase or sale of any penny stock, under Exchange Act Section 21(d)(6). [15 U.S.C. § 78u(d)(6)] IV. Civil Penalties Ordering Keener to pay an appropriate civil penalty under Exchange Act Section 21(d)(3). [15 U.S.C. § 78u(d)(3)] V. Disgorgement Ordering Keener to disgorge, with prejudgment interest, all ill-gotten gains derived from the activities set forth in this Complaint. Case 1:20-cv-21254-XXXX Document 1 Entered on FLSD Docket 03/24/2020 Page 12 of 13 13 VI. Further Relief Granting such other and further relief as this Court may deem just, equitable, or necessary in connection with the enforcement of the Federal securities laws and for the protection of investors. DATED: March 24, 2020 Respectfully submitted, By: /s/ Joshua E. Braunstein (Special Bar No. A5502640) Antony Richard Petrilla (Special Bar No. A5502641) Attorneys for Plaintiff SECURITIES AND EXCHANGE COMMISSION 100 F Street NE Washington, DC 20549 Telephone: [phone] [e-mail] Lead Attorney Attorney To Be Noticed ATTORNEYS FOR PLAINTIFF