TVI Suffers From ‘Spreadsheet Errors’

TVI Pacific (TVI-T) says investors shouldn’t rely on its financial information from 2005, 2006 or the first quarter of 2007.

TVI spokesman Paul Moon says an error in the company’s spreadsheet formula resulted in an understatement of amortization, depreciation and accretion expenses.

While the errors are limited to non-cash segments of the spreadsheet and don’t effect previously stated cash flows or working capital, they do likely mean that net income was overstated.

And TVI’s foreign currency translation account had certain amounts that should have been allocated to capital assets or to net income or both — which will also detract from net income.

TVI says it will investigate the impact adjustments will have on its balance sheets, statements of earnings, and statements of cash flows.

The company says that no fraud or misconduct on behalf of any of its employees, management, officers or directors is suspected.

In light of the mistakes, the company says it will make changes to its financial reporting procedures and internal controls.

“Especially,” TVI said in a release, “with regard to the complex accounting standards related to consolidation and foreign currency translation of results reported by affiliated companies.”

Second quarter financial statements won’t be ready until after the Toronto Stock Exchange’s Aug. 14 deadline. TVI says its restated financial information should come by the end of August.

TVI’s most advanced project is the Canatuan gold and silver mine in the Philippines, which went into production in 2004. It also has interests in China and Tibet.

On the day the new was released the Calgary-based company’s shares fell 20% or 3 to 12 on 5.7 million shares traded.