A few comments from me in answer to your question matt23.I...

A few comments from me in answer to your question matt23.
I posted on another thread the average production/Q for the first two quarters, then simply multiplied these averages by the average price for each metal and came up with revenue of $171 million. This would be over $20 million more than last Q.

I also note the copper guidance figures. If the company is to hold to the confirmed guidance for FY they'll need to average an extra 1kt for each of the next two quarters over production for the first two quarters. 1,000 t @ say $13,500/t will add an additional $13.5 million/Q.

A third point is if Dragues is to average 4.8g/t for LOM, given we have had quarters in the range of 2.9g/t - 3.91g/t, sooner or later we will have to see grades exceeding 5/g/t. This of course would further boost income.

And a further point is we have not run the mills to full capacity given covid staffing interruptions. If one assumes these are still occurring, then they are probably already factored in because I used previous production figures which also included these reduced milling rates. If covid is no longer affecting the company, and maximum capacity has been achieved, then upside on my figures is possible.

As for costs, we spent millions more on Dragues in recent quarters. If these leakages have been plugged, there is no reason why expenditure will not have been reduced even though we are progressing the likes of Federation initial development, feasibility studies at Fed and Great Cobar and continuing with a fair degree of exploration, expenditure could be expected to decline. Just how competent the Board is at negotiating fair prices for the outlays I've just mentioned, and thereby limiting expenses, lays outside any information I have. Hopefully they know what they are doing???

I reckon we remain a hold or even a buy, with Dragues being the factor that holds me back from strongly suggesting 'buy'. There is no reason why the Board should not have been conservative in it's budgeting given the future need to get 'mill' ready for Federation which will incur substantial costs. Conservative spending, record metal prices and production in line with my earlier suggestions, could all combine to produce a very healthy cash balance to be reported on Thursday.