Re: The Judge will ask one simple question
in response to
by
posted on
Apr 26, 2008 08:02AM
Royalty interest in two producing mines in Flin Flon, Manitoba
I think the Judge set the tone of where he will be viewing the presentations from each side.... In this first decission he is clearly tilted toward CAA have been denied it's rightfull payments.... That is very clear in the wording of his judgment.
As I have stated... he will be asking a very simple question...... if you made no profit..... Where did your cash position come from..
In HBM own documentation, presentations, reserve reports, and news releases they admitt the success of HBM to the production from these 2 flagship operations.
It is pretty stupid of HBM managment to be smug about not paying CAA and then turning an about face and stateing contrary presentations to their own shareholders. They have already admitted that the 777 and Callignan mine are their flagship operation and will be for some time into the future.... Thats where the bulk of their resources are..... that from their own reserve report!
I say it is enevitable that CAA will recieve additional back payments and like punative damages....
HBM also gives no contingent liability in their financials for payments or back payments to CAA.... Shareholders of HBM may slay them for not disclosing that if a significant judgment is made in CAA's favour....
The Judge also stated that HBM intentionally has not complied with it's own agreement with CAA in keeping the records of the mines in question seperate from other operations..... Thus intensionally witholding information from CAA.... and it's own shareholders.
The single statement in their financial is grossely insufficent to warn of pending court decision...JMHO
Again....Where did the $738 million in cash come from ?
http://www.soxlaw.com/compliance.htm
Sarbanes-Oxley Act Section 302
Summary of Section 302
Periodic statutory financial reports are to include certifications that:
Financial statements are published by issuers are required to be accurate and presented in a manner that does not contain incorrect statements or admit to state material information. These financial statements shall also include all material off-balance sheet liabilities, obligations or transactions. The Commission was required to study and report on the extent of off-balance transactions resulting transparent reporting. The Commission is also required to determine whether generally accepted accounting principals or other regulations result in open and meaningful reporting by issuers.
Summary of Section 802
This section imposes penalties of fines and/or up to 20 years imprisonment for altering, destroying, mutilating, concealing, falsifying records, documents or tangible objects with the intent to obstruct, impede or influence a legal investigation. This section also imposes penalties of fines and/or imprisonment up to 10 years on any accountant who knowingly and wilfully violates the requirements of maintenance of all audit or review papers for a period of 5 years