For starters they say that third party ore stopped in Feb and they have been mining lower grades. They cite grades of 1.08% with cash cost of $2.39.
Roll out the CUO quarterly and we find at the lady annie project they had grades of 1.08% and cash cost of $0.83.
They also talk about industry standard cost increases but many other Chilean producers have very very low costs.
In the context of the noise they were making not so long ago about getting the cost down well under $2 the statement they made in the quarterly about costs read like feeble excuses.
I'm holding for now and giving them another quarter. They have certainly improved the production volumes over the last 6 months so lets hope they improve the costs. I am simply providing a realistic view to counter the rose coloured glasses and blatant ramping.
TMR Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
