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Message: Re: Stock price
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Nov 10, 2009 01:05PM
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Nov 10, 2009 04:51PM
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Nov 10, 2009 05:27PM
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Nov 10, 2009 07:19PM
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Nov 10, 2009 08:00PM

Keep in mind that the Hinge bulk sample has yet to hit the bottom line so even if September was the first Month of + cash flow, cash from Hinge, 5502 ounces worth, could offset any loss from July and August if the accounting department declares commercial production.

"Of note during the quarter is the recovery of 5,502 ounces of gold on which revenue is not recognized. These commissioning ounces are recorded as a reduction to the capitalized value of the Hinge mineral property; this translates to a dollar amount of $5,885,434 – when commercial production is declared on the Hinge, these ounces will be considered production and be recorded as revenue which would have a material impact on the reported performance of the Company."

For the first half of the year they had a burn rate including exploration expenses of about $20 million or about $3.33 million per month. They had about $40 million in the bank in September and for the first half of the year booked about 6600 ounces running a mix of development lower grade ore.

Even if they ran the same rate on average,which they didn't, they should have at least produced 3300 ounces. So if they declared commercial production on the Hinge, that would put the total to almost 9000 ounces for the quarter and very close to break even using the average burn. Take out the exploration expense as it doesn't factor in to working capital expense and I would say this quarter we could surprise the market.

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Nov 10, 2009 08:47PM
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