The Company recorded a net loss of $20,501 in Q2 2019, compared with net income of $90,735 in Q2 2018.This movement was primarily due to a decrease in revenues of $73,859 from $103,321 in Q2 2018 to $29,462in Q2 2019, an increase in operating costs of $3,064 from $30,220 in Q2 2018 to $33,284 in Q2 2019, an increasein finance costs of $2,474 and an increase in exploration and evaluation costs of $1,130. This was partiallyoffset by a decrease in the foreign exchange loss of $5,135, an increase in interest income of $4,052, a decreasein income tax expense of $5,301 and a decrease in deferred income tax recovery of $45,953, from a recoveryof $45,593 in Q2 2018 to an expense of $360 in Q2 2019. For the six months ended June 30, 2019, the Companyrecorded a net loss of $22,669, compared with net income of $136,579 for the same prior year period. Thismovement was primarily attributable to the same factors as above.Sales·The Company recognized revenues of $29,462 in Q2 2019, compared with $103,321 in Q2 2018, withproduction for Q2 2019 of 2,515 tonnes of V2O5 being 57 tonnes higher than the 2,458 tonnes produced in Q22018. Vanadium sales from a contract with a customer (note 19) was $75,786 in Q2 2019, compared with$100,664 in Q2 2018. This decrease is primarily attributable to a decrease in the V2O5 price, with the averageprice per lb of V2O5 of approximately US$8.59 for Q2 2019, compared with approximately $15.44 for Q2 2018.For the six months ended June 30, 2019, the Company recognized revenues of $73,776 ($194,414 in the sameprior year period), with vanadium sales from a contract with a customer (note 19) of $177,189 ($167,223 forthe same prior year period). Revenues are related to the Mine properties segment. Refer to note 4(c) part 8 ofthe Company’s audited annual consolidated financial statements for the year ended December 31, 2018 forthe Company’s vanadium sales accounting policy.·The following table summarizes the revenues earned by the Company on a per unit basis for the three and sixmonth periods ended June 30, 2019 and 2018:Three months ended Six months endedJune 30,2019June 30,2018June 30,2019June 30,2018Revenuesper poundsold1, 2$5.39$18.91$7.31$18.77Revenuesper poundsold1, 2(US$)US$4.02US$14.62US$5.47US$14.65Vanadium salesper poundsold1, 2$13.86$18.42$17.55$16.14Vanadium salesper poundsold1, 2(US$)US$10.33US$14.24US$13.13US$12.60Revenueadjustmentper pound1, 2$(10.15)$0.49$(10.24)$2.63Revenue adjustmentper pound1, 2(US$)US$(7.57)US$0.38US$(7.66)US$2.061.The revenues per pound, vanadium sales per pound and revenue adjustment per pound reported are on a non-GAAP basis. Refer to the “Non-GAAP Measures”section of this MD&A.2.Revenues per pound sold and vanadium sales per pound sold are calculated based on the quantity of V2O5 sold during the stated period. Revenue adjustmentper pound is calculated based on the quantity of V2O5 sold that is subject to re-measurement. This may or may not differ to the quantity sold. Accordingly,these three measures may not, and are not intended to, sum.·As a consequence of the negative revenue adjustment per pound1 realized in Q2 2019 and the six monthsended June 30, 2019, the Company’s trade payables balance at June 30, 2019 (note 9) was $67,401 (December31, 2018 – trade receivables (note 5) of $55,011). At June 30, 2019, the revenue adjustment payable1 was$78,902. Assuming V2O5 prices remain the same as at June 30, 2019 (refer to “Liquidity and Capital Resources”section of this MD&A), the Company’s estimated revenue adjustment payable for V2O5 sold1 to June 30, 2019is $94,860. At the date of this MD&A, the Company’s estimated revenue adjustment payable for V2O5 sold1 toJuly 31, 2019 is approximately $99,507.1 The revenue adjustment per pound, revenue adjustment payable an