Read this to see why, because apparently this dumbass thinks write downs are “just a financial accounting mechanism” and that “the big falls in reserves and resources noted in the headlines are not real“. That must be candidate for the “I Can’t Read Financials But WTF It’s Mining So Who Cares” analysis award for 2014.
Apparently, write downs are JUST a financial mechanism. They don’t represent anything apart from a few numbers changing on a balance sheet, or an impairment taken on the P+L, right Larry? You’re telling us they’re nothing to do with companies taking shareholder cash or diluting shareholder’s percentage ownership, then way waaaay overpaying for something, then finally realizing how dumb they were and admitting to the world that the money they spent would have been better used somewhere else….like dividends…or not issuing vast amounts of shares….or even running share buybacks. Y’know, things that improve the freakin share price of these pathetically run companies?
And aparently the mark down of reserves and resources “are not real”. Where do us normal, well-adjusted people who understand a bit about company fundamentals start with this pearl of dumbassery? Because it seems the major problem will be putting the concept into words (1 or 2 syllable max) that will register some sort of synaptic recognition in your malfunctioning fizzog. All that cash these miners used to prove up those ounces is spent, but WTF…who cares right? Or “Hey there! Buy our shares!!! because we have 100m ounces!!! ready to mine and it’s going to be great!!! and….oh, sorry, only 50m there now but thanks for being a loyal shareholder“. Got it yet? Oh my lordy lord…
Lawrence Williams, prepared to be laughed at while attending PDAC. Though knowing the cowardly manner of the industry’s participants, they’ll probably just do it behind your back.