Attached files
| file | filename |
|---|---|
| 8-K/A - 8-K/A - Eastern Resources, Inc. | v314938_8ka.htm |
EXHIBIT 99.1
Loss on Related Party Ore Purchase Agreement and Change in Fair Value of Embedded Derivative
| Inputs | ||||
| Initiation date | 4/15/2011 | |||
| Measurement date | 4/15/2011 | |||
| Initial price | $ | 10,000,000 | ||
| Total delivery | 33,000 | |||
| Price / oz. | $ | 500 | ||
| Discount Rate ** | 25 | % |
| Date | OZ to
Deliver | Total Price | Discount Period | Discount Factor | PV of PMT | Futures Price
on Measurement Date * | Delivery Value | PV of
Delivery | Related Party
Ore Purchase Derivative Contract | |||||||||||||||||||||||||||
| 1/31/2012 | - | $ | 10,000,000 | 0.80 | 0.84 | $ | 10,000,000 | $ | 1,489.40 | $ | 0 | $ | 0 | |||||||||||||||||||||||
| 2/29/2012 | - | $ | 0 | 0.88 | 0.82 | $ | 0 | $ | 1,490.90 | $ | 0 | $ | 0 | |||||||||||||||||||||||
| 3/31/2012 | 180 | $ | 90,000 | 0.96 | 0.81 | $ | 72,582 | $ | 1,490.90 | $ | 268,362 | $ | 216,425 | |||||||||||||||||||||||
| 4/30/2012 | 360 | $ | 180,000 | 1.05 | 0.79 | $ | 142,489 | $ | 1,492.80 | $ | 537,408 | $ | 425,416 | |||||||||||||||||||||||
| 5/31/2012 | 360 | $ | 180,000 | 1.13 | 0.78 | $ | 139,864 | $ | 1,492.80 | $ | 537,408 | $ | 417,579 | |||||||||||||||||||||||
| 6/30/2012 | 360 | $ | 180,000 | 1.21 | 0.76 | $ | 137,287 | $ | 1,495.20 | $ | 538,272 | $ | 410,544 | |||||||||||||||||||||||
| 7/31/2012 | 2,380 | $ | 1,190,000 | 1.30 | 0.75 | $ | 890,901 | $ | 1,495.20 | $ | 3,558,576 | $ | 2,664,150 | |||||||||||||||||||||||
| 8/31/2012 | 3,471 | $ | 1,735,600 | 1.38 | 0.73 | $ | 1,275,429 | $ | 1,497.70 | $ | 5,198,816 | $ | 3,820,420 | |||||||||||||||||||||||
| 9/30/2012 | 3,694 | $ | 1,846,800 | 1.46 | 0.72 | $ | 1,332,143 | $ | 1,497.70 | $ | 5,531,905 | $ | 3,990,300 | |||||||||||||||||||||||
| 10/31/2012 | 4,406 | $ | 2,202,800 | 1.55 | 0.71 | $ | 1,559,660 | $ | 1,501.10 | $ | 6,613,246 | $ | 4,682,413 | |||||||||||||||||||||||
| 11/30/2012 | 3,417 | $ | 1,708,400 | 1.63 | 0.69 | $ | 1,187,323 | $ | 1,501.10 | $ | 5,128,958 | $ | 3,564,580 | |||||||||||||||||||||||
| 12/31/2012 | 4,094 | $ | 2,046,800 | 1.71 | 0.68 | $ | 1,396,300 | $ | 1,505.90 | $ | 6,164,552 | $ | 4,205,376 | |||||||||||||||||||||||
| 12/31/2013 | 10,612 | $ | 5,306,100 | 2.21 | 0.61 | $ | 3,237,604 | $ | 1,544.40 | $ | 16,389,482 | $ | 10,000,312 | |||||||||||||||||||||||
| Total | 33,333 | $ | 26,666,500 | $ | 21,371,583 | $ | 50,466,986 | $ | 34,397,514 | $ | 13,025,932 | |||||||||||||||||||||||||
| Inputs | ||||
| Initiation date | 4/15/2011 | |||
| Measurement date | 12/31/2011 | |||
| Initial price | $ | 10,000,000 | ||
| Total delivery | 33,000 | |||
| Price / oz. | $ | 500 | ||
| Discount Rate ** | 25 | % |
| Date | OZ to
Deliver | Total Price | Discount Period | Discount Factor | PV of PMT | Futures Price
on Measurement Date * | Delivery Value | PV of
Delivery | Related Party
Ore Purchase Derivative Contract | |||||||||||||||||||||||||||
| 1/31/2012 | - | 10,000,000 | 0.08 | 0.98 | $ | 10,000,000 | $ | 1,565.80 | $ | 0 | $ | 0 | ||||||||||||||||||||||||
| 2/29/2012 | - | - | 0.17 | 0.96 | $ | 0 | $ | 1,566.80 | $ | 0 | $ | 0 | ||||||||||||||||||||||||
| 3/31/2012 | 180 | 90,000 | 0.25 | 0.95 | $ | 85,086 | $ | 1,568.00 | $ | 282,240 | $ | 266,831 | ||||||||||||||||||||||||
| 4/30/2012 | 360 | 180,000 | 0.33 | 0.93 | $ | 167,038 | $ | 1,569.40 | $ | 564,984 | $ | 524,298 | ||||||||||||||||||||||||
| 5/31/2012 | 360 | 180,000 | 0.42 | 0.91 | $ | 163,960 | $ | 1,569.40 | $ | 564,984 | $ | 514,638 | ||||||||||||||||||||||||
| 6/30/2012 | 360 | 180,000 | 0.50 | 0.89 | $ | 160,939 | $ | 1,571.60 | $ | 565,776 | $ | 505,865 | ||||||||||||||||||||||||
| 7/31/2012 | 2,380 | 1,190,000 | 0.58 | 0.88 | $ | 1,044,386 | $ | 1,571.60 | $ | 3,740,408 | $ | 3,282,716 | ||||||||||||||||||||||||
| 8/31/2012 | 3,471 | 1,735,600 | 0.67 | 0.86 | $ | 1,495,161 | $ | 1,573.80 | $ | 5,462,975 | $ | 4,706,170 | ||||||||||||||||||||||||
| 9/30/2012 | 3,694 | 1,846,800 | 0.75 | 0.85 | $ | 1,561,646 | $ | 1,573.80 | $ | 5,812,988 | $ | 4,915,436 | ||||||||||||||||||||||||
| 10/31/2012 | 4,406 | 2,202,800 | 0.83 | 0.83 | $ | 1,828,361 | $ | 1,575.90 | $ | 6,942,785 | $ | 5,762,627 | ||||||||||||||||||||||||
| 11/30/2012 | 3,417 | 1,708,400 | 0.92 | 0.81 | $ | 1,391,876 | $ | 1,575.90 | $ | 5,384,535 | $ | 4,386,914 | ||||||||||||||||||||||||
| 12/31/2012 | 4,094 | 2,046,800 | 1.00 | 0.80 | $ | 1,636,856 | $ | 1,578.10 | $ | 6,460,110 | $ | 5,166,245 | ||||||||||||||||||||||||
| 12/31/2013 | 10,612 | 5,306,100 | 1.50 | 0.72 | $ | 3,795,382 | $ | 1,596.40 | $ | 16,941,316 | $ | 12,117,897 | ||||||||||||||||||||||||
| Total | 33,333 | 26,666,500 | $ | 23,330,692 | $ | 52,723,101 | $ | 42,149,637 | $ | 18,818,944 | ||||||||||||||||||||||||||
* GCJ2 Comb Commodity Futures prices as of 4/15/11
** Based on publicly traded mining companies focuses on Gold with zero revenue.
| Related Party Ore Purchase Derivative Contract as of April 15, 2011 | $ | 13,025,932 | ||
| Related Party Ore Purchase Derivative Contract as of December 31, 2011 | $ | 18,818,944 | ||
| Loss on Related Party Ore Purchase Derivative as of December 31, 2011 | $ | 5,793,013 |