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Friday, September 25, 2009 8:48:52 AM
Hi Bradford, to clarify...
I'm trying to clarify as it's like following someone good at maths when they miss out a line of working and your left scraching head
Amortization of the mining rights you are getting from the cash flow? So, it's 2009 figure in the cash flow is $818,028?
Am I right in saying that the amortization is put as an expense in the cost of goods sold? So, we don't know the exact mistake they have made but it's in the region of, worse case scenario, a multiple of 2, say, of $818,028?
The net income you have taken from the 3 months ending June 30th 2009? 12,430,720.
Assuming you got it this way the amortization, in the cash flow, $818,028, was for the *six* months ending 2009, yep? Does that change anything?
So, assuming I'm right, using your method and my pessimism, you'd probably want to be talking about $400,000 expense and taking a pessimistic, bad case scenario, with a multiple of 2 of this. So $800,000 or around 6% (800,000 / 12,430,720) of net margins in play with a reasonable chance it could be better 3%?
Question... If I'm right about it affecting cost of goods sold why don't we use the revenues? Or is the net income a short cut way of working out it's not significant?
muchos cheers...
rich
I'm trying to clarify as it's like following someone good at maths when they miss out a line of working and your left scraching head
Amortization of the mining rights you are getting from the cash flow? So, it's 2009 figure in the cash flow is $818,028?
Am I right in saying that the amortization is put as an expense in the cost of goods sold? So, we don't know the exact mistake they have made but it's in the region of, worse case scenario, a multiple of 2, say, of $818,028?
The net income you have taken from the 3 months ending June 30th 2009? 12,430,720.
Assuming you got it this way the amortization, in the cash flow, $818,028, was for the *six* months ending 2009, yep? Does that change anything?
So, assuming I'm right, using your method and my pessimism, you'd probably want to be talking about $400,000 expense and taking a pessimistic, bad case scenario, with a multiple of 2 of this. So $800,000 or around 6% (800,000 / 12,430,720) of net margins in play with a reasonable chance it could be better 3%?
Question... If I'm right about it affecting cost of goods sold why don't we use the revenues? Or is the net income a short cut way of working out it's not significant?
muchos cheers...
rich
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