News Focus
News Focus
icon url

braised007

03/07/16 3:28 PM

#49523 RE: VSAStory #49519

Eps for Q1, not sure. That'll be the first quarter that Namoya ops show up on the income statement, it'll also be the first quarter in quite some time where a huge % of interest pmts go through the IS rather than being capitalized to the BS. With the new financing they secured the last 3 senior bond pmts, so I'm not worried about it per se, but that 8.75M will be deducted, in addition to any other interest, before arriving at net earnings. I think Q1 brings them around $35M in EBITDA. I also don't think impairment will be reversed without a massive rally in gold. They capitalized almost $80M in interest alone due to Namoya being a year and a half late - that $ would have flown through the income statement all along had it been on time. It's accounting slight of hand, which is why I'm not counting on it. And even if it does reverse, it's a non-cash gain, so what do they get from it? Nothing, aside from helping their leverage ratios through gimmickry.