Our production recovered well from recession in Q1, our net income is well up. Net income this quarter contained a number of non-recurring and in part often in items and I've got a slide to show our adjustments for this.So I think just concerned our results include equity earnings from 10-Q of $8.3 million. Not as high as last quarter and that is largely owing to lower sales. It's a tiny difference, the production was higher than sales and we should capture that up as the year progresses We have also for the first time recognized from an accounting perspective the minority interest in the earnings. The taking earnings as I am sure many of you are aware are basically a non-cash equity accounted item and I think its interesting to note that the excess overrun facility has been reduced by $26.8 million in the down to $188 million. Looking at progress on projects. We continue to make a very good progress on our internal projects. The nervous Neves cobalt shaft has been successfully expanded and that's the key to some of our future plans for Neves and the Lombador pre-feasibility study is now complete and the entry of the new copper project was successfully started up during the quarter. Here's a slide on the normalized earnings. We do have a type tight run news release for the first time that does this. You say that the number of non-recurring and partially offsetting that in to the quarter and this type will basically set us out. I think most of the adjustment there are pretty self explanatory and as you can see, our results on a normalized basis are well hidden last year and last quarter, is problematic I think repeat till last year, there is something like it $75 million pre-tax difference in pricing adjustments between Q2 this year and Q2 last year and this is really marking just have a big an improvement, they had actually driven in results one year on.
Looking at the adjusted results, one of the things that I think has probably disappointed us is that we did not manage to capture any of the nickel price tag during the quarter. Our earnings for Aguablanca don't reflect the high nickel prices that we sold in the market the March, April, May period. We had inherited an off-take contract when we bought Rio Narcea and that contract guides to the off-take, a tremendous amount of flexibility regarding quotation of periods and none of Aguablanca's concentrated sales this year have been settled and is effective that is that we reflected in the first quarter positive price adjustment unrealized at $12.4 million and that's been reversed in this Q2 and consequently we had quite a dampening effect on earning this quarter.I think the deficiencies in this contract have really felt during periods of high volatility such as we just experienced. That contract is now expired and I am very please to say that the new contract that we have put in place addresses all of those issues. We get higher realizations for ourselves from Aguablanca. We also invest more frequently and there is now fixed quotation period which we means that we would come very close to LME averages right in the last season that we've seen announced as to date. So taking the big difference in price adjustments between the quarters into account, the recovery for Q2, I am quite satisfied with the result that we have got this quarter. Looking now to financial position, I think the financial position is pretty good now. We had good cash flow in the quarter and the cash flow really is better than what appears here again just reflecting on the fact that we had $26.8 million (inaudible) from Tenke that's going to repay the excess overrun facility that is not reflected here. So the cash is building and continues to do so. Read the rest of this transcript for free on seekingalpha.com