It did not look too hot with only $7.7m profit, way down on the Decembr quarter. The reduction in ounces sold only partly explains the fall. The grade fell to around 1.00 gram/tonne, but this too does not seem to explain things. Are total costs now around $960/ounce? Bit high if that is the case. What plans do they have to get costs down and to what level?
No wonder Sprott was dumping the shares under $3.00. Never argue with Sprott, just follow what they do when they dump. Lesson learned.
The shares are not doing too well on the TSX. High volume selling, compared with what is happening here.
I could not work out why cash and cash equivalents fell by $40m from the previous quarter when the company is supposed to be making a profit on its 200,000 ounce per annum operation.
Tried to ring the company but all I got was a recorded message. Nobody is ever home, because this is an outfit run by accountants for accountants who keep special hours. Chairman lives in the US).
Share seems destined to go to $1.70-1.80 level. Perhaps there will be an improvement in the profits in the June quarterly. If not this one will really drop in a heap.
Anyone have any views on the March quarterly report?
loki (a clapped out accuntant)
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