John, re: The bottom line.
The 4 cents per share is only my calculation for cash flow from operations. Not net profit. Sorry about any misunderstandings there. And it is pretty much a worst case scenario projection as well.
My bottom line expectations still shows a small net loss, but as I noted, that will all depend on how the company treats the one time expense of the SGF royalty buyout agreement of $2 million cash and 3 million shares issued during Q2. That agreement will save the company substantial cash over the course of the projected +10 years of operations from Sigma Lamaque, should the company manage to prove up most of the resources into mineable reserves.
BTW,... The company would have shown a net profit in Q1 2006, but they expensed all the financing costs related to the redeeming of all the convertible debentures debt before the end of Q1. They would have actually shown a net profit of about $360,000 otherwise.
However,... these quarterly projections are all a mug's game at the best of times but they do help me keep things in perspective. Peggy did state at the AGM and again in the May 31 conference call, that the company would show a profit for Q2, so we'll have to wait and see how the company books this one-time cost.
I'm looking forward to the next year of this company's story. The San Juan Gold Mine, and especially the four epithermal prospects known as Golden Champune, Santa Clarita, Lily La Huaca and Erika show some promise for at least one or two potential decent sized "elephants". The hi-light of the AGM for me, was an 8 minute video presentation of the San Juan Gold Mines. It would be good for the company to get that video onto their website eventually.
Best of Luck !
Tad |
