ALLEGED HIGH OPERATING EXPENSES

The purpose of the contract is to create a long-term steady flow of profit . . . The goal of the company [Eden] is to create a steady flow of profit to the owners of the mines.

       – Contract between the IC and Eden, 2009, second paragraph.

In the open letter, the opinion was argued that despite the claimed purpose of Eden was to create a steady flow of revenue to the IC by managing the IC’s mines, Eden’s operating cost was very high and limited the IC’s profit and that such a high operating cost acted contrary to the claimed purpose of the contract from 2009.[1]

The operating cost of Eden for the years 2017 to 2021 was as follows:[2] 

ADD TABLE 

The operating cost amounted to nearly as much as the operating profit which means that the company’s profit was very meager. What was the cause of this high operating cost?

Eden has no heavy machinery nor truck. Other companies extracted the minerals, sold them and transported them. It was not Eden that marketed the product nor sold it to the final buyer. Other companies took care of that. Neither did Eden hire any staff to take care of these factors, nor did Eden have to provide accommodation for staff. Why then these high operating costs?

[1] Open letter to the EXCOM, 5 December 2021, pp. 12–13.

[2] The figures are derived from the annual accounts of Eden. See kt. 6703081970, Fyrirtækjaskrá, Skatturinn.is, https://www.skatturinn.is/fyrirtaekjaskra/leit/kennitala/6703081970.