production and costs

The lastt few quarterlies have been very good when viewd through the perspective of production levels. Yet the market ignored all this, instead focusing on costs and the spot price. The concensus being, that its all very well to have record production but if it is being sold at a loss, then its hard to have a viable long term business. Very short term thinking, but if you assume no rebound in prices or improvement in costs, there is an element of truth. Something that shorters can sink their teeth into and the sheep follow.

Now we have a situation where the latest quarterly shows three main things

1. It is possible to sell production at a significantly higher price than the prevailing spot
2. The production levels have come off marginally but are still very good
3 cost improvements continue.

Now the same "analysts" that ignored the record production levels of the past few quarterlies, are focusing on the slight pulback from record production as a major negative. Give me a break. Lack of credibility.

The same analysts who had a field day with the low sponprice and low realised sale price of production, now are conveniently ignoring the fact that the realised price was some 35 % higher than the very metric they chose to focus on last time . Lak of credibility