Folks, folks let's be reasonable, you both make valid points
From RKT's side:
Yes production is irrelevant, its all about how much margin you are making - on the face of this report the net margin on the metal produced will be down - Why? Because they have had to process more ore ie roughly 40,000 tonnes or 15% more - yet they have produced only 6% more zinc and lead was down 5%. So more ore processed but less metal produced = Higher costs.
From "Everyone who is positive on CBH" (including myself) side.
This is a very good production report. The majority of the ore has been from the bottom of the mine yet they have still produced over 290,000 tonnes. (Including 118,000 in December - superb). Imagine what they can do when producing from the middle of the mine (closer to the surface) at much higher grades and with higher recoveries. Also the second system of back fill has only just kicked in and we still have the 2nd decline to come on line soon which should lead to a significant leap again in production.
So profitability wise, it will be an average quarter, but from now onwards it should be going gangbusters. It will be interesting to see whether they do get the Coeur D'Alene $30m as they need to produce 300k tonnes for one quarter and they have done only 297k but now that I think about it they did say they have 30k tonnes waiting to be processed which would imply they've actually extracted 320k tonnes of ore from the mine, meeting the Coeur D'Alene requirements.
Thoughts anyone (but please not "CBH is good - no its not" "CBH is good - no its not" arguments = boring)
Cheers
J
CBH Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
