- Gold ounces sold in 2007 representing production at the El Sastre gold mine were 11,007 versus 807 in 2006.

- The average realized gold price per ounce in 2007 was $711 versus $619 in 2006.

- Cash cost of sales per ounce in 2007 was $180 versus $231 in 2006.

- Cash margin per ounce in 2007 (revenue per ounce - cash operating cost per ounce) was $531 versus $389 for 2006.

Looking at the above I see that we have/had a year end inventory of unsold gold of (13,819-11,007) 2812 oz. Based on the price today of $865 and cost of $180 we should realize $685x2812 = $1,926,220

Our loss was $1,520,053 so it would appear that maybe our mgt IS hedging a bit in anticipation of higher prices. We would have had a profit if they had just sold all the gold produced. This inventory should help the Q1 numbers if it is drawn down and sold. I'd like to see a Q1 inventory down to at least 1812 oz and we would pick up about (1000 x $685) $685,000.

Produce, sell; produce, sell IMHO

BB