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I thought they were making money. How did they loose more money in 2009 than 2008? I thought they were cash flow positive from their quarterly results. Is this why it took them so long to release the financials? I'm not sure that I trust these guys.
Hrmm lets think what they were doing in the 4th quarter of last year.... Lot of work getting a mine into production. San Juan was cash flow positive. I fully expected them to lose money last year. (think of the big bath, last year sucked during the worst recession of our lives so the future will look better). Lamaque producing will easily cover that $4M loss last year.
Also, as noted, last year they had to spend capex to get Lamaque into production - I remember dewatering was one big hurdle for them.
Plus, would they have paid for the new low-profile mining equipment last year? I dunno where you count that on their balance sheet, though - I assume that goes under assets & depreciation, but I know nothing.
In addition, I think I recall that last year they had to finally pay up a few big environmental costs - either cleanup fees or fines, I forget which - just to be allowed back to Val d'Or. They owed the city money, I remember. Maybe for their tailings pond? I think they also had to, or have to, rebuild/build up the dykes.
Did they ever get around to running the new Hydro line to San Juan? They wanted to do that to get the plant off diesel. I think they did do that, because they've since been talking about running free electricity to the miners' homes. That alone would have been over $1M in costs, to run a Hydro line out to the boonies.
Overall, you gotta spend money to make money. That's why Finsky gave them his millions.
We will have to look at their Q1 2010 to see if they moved towards profitability that quarter; then, by Q2 or Q3 they need to show a good positive kick from Lamaque. As long as those figures go steadily up on the plus side, we'll be happy.
A proper investment dude could do all the math for you right now, to tell you if they're on the road to profitability. I suggest reading the detailed docs in SEDAR and not the press release - there are no rules against lying in press releases, which is why you should always ignore press releases and go straight to a company's filings.
4 comments:
Could you please interpret the numbers for us?
I thought they were making money. How did they loose more money in 2009 than 2008? I thought they were cash flow positive from their quarterly results. Is this why it took them so long to release the financials? I'm not sure that I trust these guys.
Hrmm lets think what they were doing in the 4th quarter of last year.... Lot of work getting a mine into production. San Juan was cash flow positive. I fully expected them to lose money last year. (think of the big bath, last year sucked during the worst recession of our lives so the future will look better). Lamaque producing will easily cover that $4M loss last year.
Last year included the market crash, #1.
Also, as noted, last year they had to spend capex to get Lamaque into production - I remember dewatering was one big hurdle for them.
Plus, would they have paid for the new low-profile mining equipment last year? I dunno where you count that on their balance sheet, though - I assume that goes under assets & depreciation, but I know nothing.
In addition, I think I recall that last year they had to finally pay up a few big environmental costs - either cleanup fees or fines, I forget which - just to be allowed back to Val d'Or. They owed the city money, I remember. Maybe for their tailings pond? I think they also had to, or have to, rebuild/build up the dykes.
Did they ever get around to running the new Hydro line to San Juan? They wanted to do that to get the plant off diesel. I think they did do that, because they've since been talking about running free electricity to the miners' homes. That alone would have been over $1M in costs, to run a Hydro line out to the boonies.
Overall, you gotta spend money to make money. That's why Finsky gave them his millions.
We will have to look at their Q1 2010 to see if they moved towards profitability that quarter; then, by Q2 or Q3 they need to show a good positive kick from Lamaque. As long as those figures go steadily up on the plus side, we'll be happy.
A proper investment dude could do all the math for you right now, to tell you if they're on the road to profitability. I suggest reading the detailed docs in SEDAR and not the press release - there are no rules against lying in press releases, which is why you should always ignore press releases and go straight to a company's filings.
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