IFRS

The IFRS reporting standard, which replaces GAAP, was adopted by the company after commercial production was declared at the end of fiscal 2011. This made for a harrowing experience, not knowing anything about the standard, and not knowing if the company would be slapped with a cease trade order because they were so late in reporting it.

If you look through some of the measures, you would say that this seems tailored for any resource sector stock, though it handicaps them to reporting their operations and development costs for one quarter and the next. Thus costs look like they're almost double.

Al Rosen had something to say:

Canada

The use of IFRS became a requirement for Canadian publicly accountable profit-oriented enterprises for financial periods beginning on or after 1 January 2011. This includes public companies and other “profit-oriented enterprises that are responsible to large or diverse groups of shareholders.”[10] Al Rosen, a forensic accountant who, for 15 years acted as a technical advisor to three Auditors General of Canada, believes Canadafoolishly decided to adopt IFRS rules stating "I don't think they've studied it well enough. Like, we sat down and looked at the Canadian practices we had under Canadian reporting, we looked at IFRS, and we have over 100 dirty tricks you can pull under IFRS."[11]

source: http://en.wikipedia.org/wiki/Ifrs

One thing that caught my eye was the chart on how costs are increasing in the gold mining sector.

This can only mean one of two things. First, the IFRS makes costs look higher than they actually are, even though costs for the next quarter are covered, and second, miners have been exaggerating their grades, but processing more barren rock.

However it works out, if costs had increased this much, then very likely it has affected the entire resources sector very adversely.

source: ZeroHedge

-F6