re: Ann: Update Las Lagunas Gold and Silver P... I am a holder...

re: Ann: Update Las Lagunas Gold and Silver P... I am a holder of this stock so I am not a down-ramper but in the interest of having a balanced view on this stock I think a few of you need to learn the difference between cashflow and earnings.

The company may be making operating cashflow of $4-5M per month but their earnings will be a hell of a lot less as they have a lot of amortisation to write-off, admin costs, and probably some non-cash financing adjustments to be deducted as well.

The finance repayments and other commitments will also make a big dent in the cashflow so there is not going to be a lot of spare cash around to pay divi's etc.. as some have been suggesting.

The main piece of news I took away from this announcement is that they think the revenue will maximise out at $7-8M, which to me means they are only expecting to produce about 50,000 ounces au and about 500,000 ag per annum. This needs further explaining by the company as this is a significant reduction from the 69,000 au they were expecting last year.

I would say this no better than a hold at the moment until we get a full quarterly report from the company that may clarify things further.