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Re: TMLonggun post# 19442

Wednesday, 04/23/2014 11:50:53 PM

Wednesday, April 23, 2014 11:50:53 PM

Post# of 24225
TMLonggun, I'd have to agree with your assessment. There are many variables all contributing to the bottom line on whether a particular mining stock can become reasonably efficient and profitable in a challenging environment. The POG is definitely a driver for most enterprises and can make a difference on whether mines are put on care and maintenance or expanded to increase production rates. As I've posted before, I think LODE needs to markedly increase its production in a timely manner to benefit in economies of scale (e.g., spread out their fixed costs over a larger production base and thereby decrease their cost per ounce basis), and make further gains towards becoming profitable. From what I've seen over the least year or so, there are quite a few miners that have their all in cash costs between $1000 and $1100 per ounce.

Regarding how LODE is portraying their cost data, I thought the industry was trying to formalize and standardize how it was to be done, which included providing investors with a bottom line all in cost per ounce produced. Maybe it's not a hard requirement, but only a recommended best practice? Haven't really looked into it so I don't know the details.

I do think LODE is a decent stock with some good potential to participate and benefit in the long run, especially if the POG regains its footing and heads back towards the highs of yesteryear.

Anyway, good day to you.

I am NOT a Financial Adviser. Nothing I post should be considered financial advice. I may be holding a long, short or no position. I am NOT compensated to post on here.

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