I find the financial outlook disturbing, to say the least. How is the company ever going to run a decent profit, when it spends like it is spending? Improved operating margins are fine, though at a much lower than earlier anticipated output, but when you have G&A costs out of proportion like this ($1 mln per quarter), it will never work out.

"Financial Outlook

The Company expects to have sufficient funding to continue its business strategy through 2014, ending the year with a cash balance of approximately $2.0 million. The Company intends to spend approximately $8.5 million on the following amounts during the third and fourth quarters of 2014: approximately $3.0 million of negative gross margin and start-up costs related to the restart of Velardena, $1.0 million of capital expenditures for mill improvements and slusher equipment; $0.5 million for ongoing maintenance and holding costs at El Quevar; $1.5 million on other exploration activities and property holding costs; and $2.0 million on general and administrative costs and $0.5 million in increased working capital."