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8.2¢ alliance mineral assets limited

I believe tantalum sales will still be classified under revenue,...

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12/03/19

17:06

Post #: 37735987
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Originally posted by luanboo: ↑

For Ta sales, accounting wise, it will not be booked under revenue. It will be booked under service credits (to reduce the cost of goods sold).
Nevertheless, it definitely helps directly in cashflow.

As for the calculation, it is not correct.
It should be 132,240lb x USD70/lb = USD$9.25m = A$12.96m

I have confirmed this with the expert. Here's what the expert said.
"As with most metals with variable concentrate grades, tantalum sales are counted on contained Ta2O5, the price is not for the concentrate (ie 30%). So 1 tonne (2204Lbs) of concentrate at 30% and US$90 is worth about US$198,360"

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I believe tantalum sales will still be classified under revenue, assuming that the principal activities of the company includes that of selling of tantalum concentrate. Otherwise, it'll be classified as other income. Never in any case will it be a service credit that reduces COGS as that would be going against FRS 2 rule of valuing inventories at lower of cost/NRV.

A40 Price at posting: 19.0¢ Sentiment: Buy Disclosure: Held
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