Tis rigor and not law

Primero Mining (PPP) (P.to) 4q14 results

Here’s the link to the whole thing, here’s how the 4q14 results NR from Primero Mining (P.to) (PPP) begins. A four-point observation of the paragraph below:

Primero Mining Corp. (“Primero” or the “Company”) (TSX:P.TO) (PPP)
today reported financial and operational results for the fourth quarter
and year ended December 31, 2014. On January 20, 2015 the Company
reported record production of 225,100 gold equivalent ounces(1), a 57% increase over 2013, at low cash costs(2)
of $687 per gold equivalent ounce. Today the Company reports record
revenues in 2014 of $274.6 million, operating cash flow before changes
in working capital(3) of $73.7 million ($0.48 per share), a
net loss of $224.4 million ($1.48 per share) including $209.0 million
($1.37 per share) in non-cash impairment charges(4) and adjusted net income(5) of $5.4 million ($0.04 per share).

a) Adjusted net income does not exist.
b) Seriously, it does not fucking exist. It’s a made up name for “We made a loss but if you pretend this item here doesn’t exist then we made a profit”. It may be something the world has been mesmerized into accepting, but it’s still pure fiction.
c) $75m of that impairment was taken against the value of Black Fox. Primero bought Black Fox in March 2014, less than one year ago. The deal at the time was all-share and had a ticket price of C$220m. In other words, P tells us today that it paid 36% too much for its purchase. Way to create value, fucktards.
d) Goldcorp (GG) sold all its remaining holding of Primero in a secondary last year at $7.20/share. The stock’s now $4. Goldcorp is many things, but stupid is not one of them.

PS: Primero’s financial advisors on the Brigus deal were BMO, who need to be taken out and shot for all the solid financial advice they’re capable of offering.

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