Ann: Operations Update, page-4

The seller of around 1 million shares in the low twenties (who reappeared every morning) was taken out yesterday, which could see the shares head up again soon.

We lost a month's production in 2020 in Chile due to the union strike and will lose another month's production this year due to the switch to a contractor. The result is similar production from Chile in 2021 as in 2020. However, prices are higher so cash flow will certainly be better.

Cash flow will be strong at these prices and production levels.

The (new) management focus is clearly on exploration given the move to expand exploration acreage. However, it is not clear how much will be spent on exploration compared with starting/buying new production and dividends. What is the plan? We are in the dark.

The catalysts for a share price move (apart from gold/silver prices of course) are:

1 Exploration results (little drilling seems to have happened in 2020, or at least announced).
2 Shift to profitability in USA gold operations as production expands (it made a loss in the first half of 2020). So it could boost cash flow despite Chile output being unchanged on 2020.
3 Dividend (will cash flow all go on exploration, or will they repeat last year's dividend?)
4 Will the Casposo silver mine currently in care and maintenance be restarted any time soon, or do reserves need to be expanded? Or is there another problem (Argentina?) given the leap in silver prices and the lack of action.

The annual report will be interesting if it charts the way forward that is planned more clearly.