What a disappointing Q report from AEM. This stock will take a hard hit at the open tomorrow. I think it may delay 1/2 hour.
biz.yahoo.com
Well, this give us a chance to think about the new entry point if every one else is selling. The fact is that the rock fall has been completely backfilled and resume normal operation. Their poor earning was mainly "due to lower-than-planned ore production from higher gold grade areas". Most of their lower earning was due to operational efficiency and poor grade issues (high cost, in other words). Naturally, high Canadian dollar is one of the high cost reason, but, they did offer some forecast for the Q4:
"Given the third quarter results, the Company will not achieve its most recent production target of 300,000 ounces for 2003. In the fourth quarter, production is expected to be between 70,000 and 75,000 ounces at a cash operating cost between $210 and $230 per ounce. Total cash operating costs, including the El Coco royalty, are projected to be between $240 and $260 per ounce. The cash operating cost projection has been prepared based on assumed byproduct prices and exchange rates for the fourth quarter of $4.90 per ounce silver, $0.40 per pound zinc, $0.85 per pound copper and $1.30 US dollar/Canadian dollar exchange rate."
Personally, I think only higher POG can save this stock price. I may just take a loss and move on. But, if the stock price drop to below an attractive value that will be a different situation.
Nevertheless, I will keep a note: Questionable management quality of the company.
And, of course, I will add: my own poor stock selection process/taste. LOL
Wade |
