In a recent post I commented that the 3rd quarter earnings announcement would require that we brace for either positive or negative news. I am puzzled with the results! Allow me to explain:

1. Revenue of 2.2 M down from 9.8 M. (significant drop)

2. Gold production down 50%; 6680 oz vs 12, 040 oz. (significant drop)

3. Gold sales down greater than 50%; 6430 oz vs 15,661 oz. (signficant drop)

4. Average realized gold sale price of $340. (significant decline from previous year and actual spot price of gold)

End Results: a loss of 9.4 M or 4 cents vs 8.8 M or 4 cents.

I do not want to minimize the impact of recording a loss or accepting a loss as a postive, but the end result could have been much much worse then what was posted. (remember we were expecting a loss) It will be courious to see how the markets value this information and whether this information is already priced in. Normally after an earnings annoucement (unless the company blows away earnings) there is a depression or sage in price. It will be interesting to see the efficency of the market tomorrow and whether this annoucement will be valued as a positive or negative. One thing for sure...we won't have to wait long to find out.

We do need postive news on the permit front very soon as the company cannot continue to burn cash without an expectation of future earning potential from Las Cristinas.