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Strategies & Market Trends : The Ego Forum -- Ignore unavailable to you. Want to Upgrade?

To: El Canadiense who wrote (4020)	6/11/2009 7:17:09 PM
From: hubris33	Read Replies (1) \| Respond to of 12175

Sounds good! A few things. As the company points out investors shun risk, debt and hedges so getting those cleared off the balance sheet will be key. I see discussion of looking at costs for the Philip. mine, nothing about "rationalizing the asset" which is code words for 'looking for a buyer.' I haven't looked at the project in depth so no idea if $100MM for the project makes sense - wonder what they can get per ounce of gold in the ground? Before the collapse resources were selling for $50-$100/oz, reserves a bit more. Now perhaps $10-$25/ oz of "gold in the ground?" Though I haven't bench marked that. What usually happens with situations like these is that the Funds avoid them until it is clear things have turned around. My guess is that they wait until the debt or hedges are cleared and then wait for a couple of profitable quarters before wandering in. This gives individual investors, willing to shoulder some risk, a chance to buy in before the Big Boys. Looking at that one slide of quarterly ounces & cash costs got me wondering if the reason costs went down were because they had increased production. So I recreated Operating Costs (cash) and see that in the JuneQ2008 costs were $43.6MM but in the recent Q, March2009, cost were $22.6MM. NOW THAT impresses me - cutting cost by nearly 50%! If these are good numbers and they didn't shift a bunch of production costs off to the Balance Sheet as "development expenses" then the company is headed in the right direction. {and hey, how bad can that old CEO be if he was able to halve costs?} Should be a fun one to watch - keep me posted as you find stuff. I think you are faster on the draw than I. H3