Replies to post #35743 on Mexus Gold US (MXSG)

[T-Hawk]

For those who must've showed up late for class lets try this one more time...

THE PROCEEDS FROM SALES ARE USUALLY OFFSET AGAINST THE ASSET COST INSTEAD OF BEING RECOGNIZED AS REVENUE.

"Prior to realizing commercial production ( mill throughput and recovery 80% of design) any sales of concentrate ( note: agitated leach were not in commission yet for some 8 + years) are applied against cost and are not considered revenue."

If there was money brought in by the company for the sale of gold, the company would recognize that money as either

1. Revenue from gold sales. Which would be shown via an entry in the income statement and/or cash flow statement. (This would be how mining companies considered to be in commercial production would demonstrate gold sales).

OR

2. An offset of costs. There a many places this line item could be displayed. Either on the asset and liabilities sheet (based on the language you're presenting) or as a reduction of expenses.

Regardless of where it shows up, there should be an entry somewhere in the financials documenting the intake of money. Not to mention if the proceeds of these golds sales were used to pay off part of the outstanding debt (as claimed in a PR), that transaction would show up on a cash flow sheet.

Where is the entry in the 10-Q financials that accounts for this alleged money received for the sale of gold? Can anyone point it out to me?

The company has to be very careful about how it answers that question. As I pointed out. If it maintains the claim that gold sales have been made, but has not accounted for it anywhere in the financials, then they are admitting to providing false financial documents.

If they claim there has not been any sales then they have made false claims in their PRs. Ooops....

Which one is it?