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Silver doing great, but it seem like SLW has been lagging recently?
Gold and silver do seem to be getting a bit of the "crisis bid" lately. Markets turned lower midday today while gold and silver turned higher at the close. So far so good at least.
I sure hope so. My top is concern is that a market meltdown will drag down my miners again.
Any thoughts on this other board memebers?
Gold is flat to down, just about every stock in the world is down 2% on average, yet GORO continues on, up 3.33% to a new all-time high.
Another day, another new all-time high...
GOLD RESOURCE CORPORATION SETS LARGE GRINDING BALL MILL
DENVER – August 28, 2008 – Gold Resource Corporation (GRC) (OTCBB: GORO, FRANKFURT: GIH) reports setting the large grinding ball mill on its foundation at GRC’s Aguila Project as the final phase of mill construction continues. The Aguila mill is located in the southern state of Oaxaca, Mexico and is targeting gold production in 2009 subject to equipment delivery and construction schedules.
Gold Resource Corporation’s President, Mr. William Reid stated, “This truly is a milestone as this is the largest piece of equipment to be installed. We are very pleased with the excellent work to date by our engineering and construction management firm Lyntek, Inc. of Denver and in Mexico, Covasa, Inc. who is completing the final mill contract for mechanical and electrical installation.”
Ya it is curious for sure, but I don't read much into it. Silly market makers playing games or something. As long as the stock is going up, I don't care much what the path is.
And the fun hasn't stopped after the open!
Finally this company is being recognized again. Much MUCH more to come here.
Good stuff here for sure: http://www.goldresourcecorp.com./presentation/company/player.html
Nice move today! Highest since the start of the year...
IMPACT SILVER ANNOUNCES Q2 RESULTS; SILVER PRODUCTION UP 80%, OPERATING EARNINGS UP 151%, VERSUS Q2, 2008
11:19 EDT Thursday, August 27, 2009
(via Thenewswire.ca)
IMPACT Silver Corp. ("IMPACT") is pleased to announce its financial and operational results for the quarter ended June 30, 2009 which include the results of the high grade, Royal Mines of Zacualpan District in Mexico. The second quarter continued the Company's trend of increasing production, revenue and cash flow while remaining profitable.
Revenues in the second quarter exceeded $3.4 million, up 94% from $1.8 million in the second quarter of 2008. Revenues in the first six months of 2009 were $4.9 million, up 9% from $4.4 million in the same period of 2008. As a result of the recent two month strike at the Company's main customer, approximately 39% of second quarter lead concentrate production was not sold. With a rebound in the price of zinc, the Company resumed shipping zinc concentrate which it had been stockpiling since the fourth quarter of 2008. Only 13% of the zinc concentrate produced between Q4 2008 and the end of the Q2 2009 has been sold. The remaining inventories are expected to be sold by the end of the year.
Three Months Ended June 30 2009 2008 % Change
Revenue $3,404,000 $1,756,000 94
Mine Operating Earnings $1,113,000 $444,000 151
Net Income $191,000 $305,000 (38)
Mine operating earnings as a percentage of revenue 33% 25%
After investing $2.2 Million in infrastructure and exploration in the first half of the year, the company ended the quarter with net working capital of $6.5 million including cash and cash equivalents of $4.0 million. IMPACT's working capital position is expected to remain strong through the second half of the year as cash flow from mining operations is forecasted to be sufficient to fund ongoing exploration and development programs.
Quarterly silver production increased to 217,690 oz., up 80% from 120,660 oz. in the second quarter of 2008. Silver production in the first six months of 2009 increased to a record 447,400 oz., up 77 % from 252,519 oz. in the same period of 2008.
Three Months Ended June 30 2009 2008 % Change
Total tonnes produced 27,618 24,090 15
Silver production (ounces) 217,690 120,660 80
Lead production (tonnes) 258 132 96
Zinc production (tonnes) 292 167 75
Chivo Mine
During the second quarter of 2009, Chivo provided 92% (Q2 2008 - 60%) of mill feed. A second adit approximately 60 meters vertically lower on the structure reached the main vein in the fourth quarter of 2008 and has been connected to the first level. The first full production stope from the lower level came on stream during the second quarter of 2009. The Chivo Mine will continue to supply a significant amount of higher grade material to the mill.
San Ramon Mine
During the second quarter of 2009, San Ramon provided 8% (Q2 2008 - 0%) of mill feed from the mining of high grade mineral. After redesigning the mining plan, the Company recommenced mining at San Ramon in early 2008 on a selective basis. Mining continues to expand at San Ramon as the Company also develops underground access to a parallel structure, the Chaparrita Vein.
Processing Plant
At the processing plant, the ongoing program of upgrades designed to enhance recoveries and improve throughput is continuing. One of the secondary crushers was replaced by a new more efficient crusher to improve the overall throughput of the crushing circuit. Mill throughput in June was affected by this, while the new cone crusher was installed. Further plans have been approved to expand the flotation circuit capacity as well as increase the thickener capacity.
IMPACT Silver Corp. is a silver focused mining and exploration company operating in Mexico with a producing silver operation at Zacualpan, the 200-square-kilometer advanced Mamatla Silver District and an advanced project with a producing mill at Zacatecas. Energold Drilling Corp. (EGD: TSX.V) who was the contractor for the drill program, owns 6.65 million shares of IMPACT.
On behalf of the Directors of IMPACT Silver Corp.,
"Frederick W. Davidson" For further information, please contact:
President and Chief Executive Officer Darrell Rader, Corporate Development
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
1100 - 543 Granville St. Telephone 604 681 9501
Vancouver, BC V6C 1X Facsimile 604 681 6813
www.energold.com info@energold.com
Copyright (c) 2009 Thenewswire.ca - All rights reserved.
IMPACT SILVER ANNOUNCES Q2 RESULTS; SILVER PRODUCTION UP 80%, OPERATING EARNINGS UP 151%, VERSUS Q2, 2008
11:19 EDT Thursday, August 27, 2009
(via Thenewswire.ca)
IMPACT Silver Corp. ("IMPACT") is pleased to announce its financial and operational results for the quarter ended June 30, 2009 which include the results of the high grade, Royal Mines of Zacualpan District in Mexico. The second quarter continued the Company's trend of increasing production, revenue and cash flow while remaining profitable.
Revenues in the second quarter exceeded $3.4 million, up 94% from $1.8 million in the second quarter of 2008. Revenues in the first six months of 2009 were $4.9 million, up 9% from $4.4 million in the same period of 2008. As a result of the recent two month strike at the Company's main customer, approximately 39% of second quarter lead concentrate production was not sold. With a rebound in the price of zinc, the Company resumed shipping zinc concentrate which it had been stockpiling since the fourth quarter of 2008. Only 13% of the zinc concentrate produced between Q4 2008 and the end of the Q2 2009 has been sold. The remaining inventories are expected to be sold by the end of the year.
Three Months Ended June 30 2009 2008 % Change
Revenue $3,404,000 $1,756,000 94
Mine Operating Earnings $1,113,000 $444,000 151
Net Income $191,000 $305,000 (38)
Mine operating earnings as a percentage of revenue 33% 25%
After investing $2.2 Million in infrastructure and exploration in the first half of the year, the company ended the quarter with net working capital of $6.5 million including cash and cash equivalents of $4.0 million. IMPACT's working capital position is expected to remain strong through the second half of the year as cash flow from mining operations is forecasted to be sufficient to fund ongoing exploration and development programs.
Quarterly silver production increased to 217,690 oz., up 80% from 120,660 oz. in the second quarter of 2008. Silver production in the first six months of 2009 increased to a record 447,400 oz., up 77 % from 252,519 oz. in the same period of 2008.
Three Months Ended June 30 2009 2008 % Change
Total tonnes produced 27,618 24,090 15
Silver production (ounces) 217,690 120,660 80
Lead production (tonnes) 258 132 96
Zinc production (tonnes) 292 167 75
Chivo Mine
During the second quarter of 2009, Chivo provided 92% (Q2 2008 - 60%) of mill feed. A second adit approximately 60 meters vertically lower on the structure reached the main vein in the fourth quarter of 2008 and has been connected to the first level. The first full production stope from the lower level came on stream during the second quarter of 2009. The Chivo Mine will continue to supply a significant amount of higher grade material to the mill.
San Ramon Mine
During the second quarter of 2009, San Ramon provided 8% (Q2 2008 - 0%) of mill feed from the mining of high grade mineral. After redesigning the mining plan, the Company recommenced mining at San Ramon in early 2008 on a selective basis. Mining continues to expand at San Ramon as the Company also develops underground access to a parallel structure, the Chaparrita Vein.
Processing Plant
At the processing plant, the ongoing program of upgrades designed to enhance recoveries and improve throughput is continuing. One of the secondary crushers was replaced by a new more efficient crusher to improve the overall throughput of the crushing circuit. Mill throughput in June was affected by this, while the new cone crusher was installed. Further plans have been approved to expand the flotation circuit capacity as well as increase the thickener capacity.
IMPACT Silver Corp. is a silver focused mining and exploration company operating in Mexico with a producing silver operation at Zacualpan, the 200-square-kilometer advanced Mamatla Silver District and an advanced project with a producing mill at Zacatecas. Energold Drilling Corp. (EGD: TSX.V) who was the contractor for the drill program, owns 6.65 million shares of IMPACT.
On behalf of the Directors of IMPACT Silver Corp.,
"Frederick W. Davidson" For further information, please contact:
President and Chief Executive Officer Darrell Rader, Corporate Development
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
1100 - 543 Granville St. Telephone 604 681 9501
Vancouver, BC V6C 1X Facsimile 604 681 6813
www.energold.com info@energold.com
Copyright (c) 2009 Thenewswire.ca - All rights reserved.
I'd rather see it run to $9 or so before a pullback. If it stops here the bears will be calling for a double top. If it runs significantly further then the $6 level becomes support. The fundamentals are there. They are basically mining profitably already, they see enough promise in nearby land to buy it up in order to hopefully expand mine-able area for the future, drill results of anywhere nearby are always awesome, share structure is terrific, dividends are in sight, POG is rising, etc., etc. I've said since the beginning in the low $1s that I won't be taking profits until $20 or so, and that view remains unchanged.
GORO trading at a new all-time high of $6.10 right now. I'm curious to know of any other miners that have more than recouped their losses of late last year? Quick glance at the XAU HUI and the big miner namess like ABX NEM AEM GG etc. show they are all around 25-30% below their mid 2008 highs.
The only one that comes to mind is RBY and they are over 50% higher than their 2008 high. I'm sure there are some other names out there though?
EAS.V is another now that I think about it. Who else?
High of $6.08 so far today, just 1 cent away form that all-time high.
What a monster in the making this company is! All time high of $6.09 just 14 cents away right now.
Gold Resource Corporation Extends Its Land Position With Additional Claims Along Trend
http://finance.yahoo.com/news/Gold-Resource-Corporation-iw-2235261437.html?x=0&.v=1
DENVER, CO--(Marketwire - 08/24/09) - Gold Resource Corporation (GRC) (OTC.BB:GORO - News) (Frankfurt:GIH - News) reports filing additional land concessions over the Alta Gracia mining district extending its important San Jose structural corridor to an impressive 16+ kilometers. GRC's primary focus will continue on its flagship El Aguila Project however these new land claims will add a fifth property to the company's holdings and position GRC with a 100% interest of three consecutive mining districts in the San Jose area. The addition of Alta Gracia will add to the company's pipeline of potential projects and long term operations at GRC's El Aguila mill currently under construction. The Aguila mill is located in the southern state of Oaxaca, Mexico and is targeting gold production in 2009 subject to equipment delivery and construction schedules.
Mr. William W. Reid, President of Gold Resource Corporation, stated, "The opportunity to add an additional property to the Company's land holdings is very exciting on many levels. The Alta Gracia property is adjacent to our Las Margaritas property, extends our total mineralized corridor to over 16 kilometers and adds additional production potential to our El Aguila mill as trucking high-grade ore would not be a problem. This fits the company's long term plan of multiple mines feeding the strategically located El Aguila mill. We believe this approach will add longevity to our operations while keeping capital expenditures to a minimum as we develop these additional properties. "
Mr. Reid continued, "The district was mined historically on a small scale as recently as the 1970s and we recognized many similarities of Alta Gracia to our current focus area of La Arista at our El Aguila Project. One of our surface samples assayed in excess of 1.4 kilos per tonne of silver. The Alta Gracia property joins the Company's property portfolio consisting of its El Aguila Project, Las Margaritas property, El Rey property and the Solaga property. We intend to be a long term gold and silver producer and the addition of Alta Gracia adds tremendous potential to our exciting exploration program in the state of Oaxaca."
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 46,095,489 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan," "target," "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that commercial production at the El Aguila Project will be achieved in the time frames estimated, at the rates and costs estimated, or even at all. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-K filed with the Securities and Exchange Commission
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=1049087
Gold Resource Corporation Extends Its Land Position With Additional Claims Along Trend
http://finance.yahoo.com/news/Gold-Resource-Corporation-iw-2235261437.html?x=0&.v=1
DENVER, CO--(Marketwire - 08/24/09) - Gold Resource Corporation (GRC) (OTC.BB:GORO - News) (Frankfurt:GIH - News) reports filing additional land concessions over the Alta Gracia mining district extending its important San Jose structural corridor to an impressive 16+ kilometers. GRC's primary focus will continue on its flagship El Aguila Project however these new land claims will add a fifth property to the company's holdings and position GRC with a 100% interest of three consecutive mining districts in the San Jose area. The addition of Alta Gracia will add to the company's pipeline of potential projects and long term operations at GRC's El Aguila mill currently under construction. The Aguila mill is located in the southern state of Oaxaca, Mexico and is targeting gold production in 2009 subject to equipment delivery and construction schedules.
Mr. William W. Reid, President of Gold Resource Corporation, stated, "The opportunity to add an additional property to the Company's land holdings is very exciting on many levels. The Alta Gracia property is adjacent to our Las Margaritas property, extends our total mineralized corridor to over 16 kilometers and adds additional production potential to our El Aguila mill as trucking high-grade ore would not be a problem. This fits the company's long term plan of multiple mines feeding the strategically located El Aguila mill. We believe this approach will add longevity to our operations while keeping capital expenditures to a minimum as we develop these additional properties. "
Mr. Reid continued, "The district was mined historically on a small scale as recently as the 1970s and we recognized many similarities of Alta Gracia to our current focus area of La Arista at our El Aguila Project. One of our surface samples assayed in excess of 1.4 kilos per tonne of silver. The Alta Gracia property joins the Company's property portfolio consisting of its El Aguila Project, Las Margaritas property, El Rey property and the Solaga property. We intend to be a long term gold and silver producer and the addition of Alta Gracia adds tremendous potential to our exciting exploration program in the state of Oaxaca."
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 46,095,489 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan," "target," "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that commercial production at the El Aguila Project will be achieved in the time frames estimated, at the rates and costs estimated, or even at all. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-K filed with the Securities and Exchange Commission
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=1049087
Steady as she goes! Ended at the HOD of day...
Rubicon Says Gold Deposit May Rival Campbell Complex (Update2)
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By Rob Delaney
Aug. 19 (Bloomberg) -- Rubicon Minerals Corp. Chief Executive Officer David Adamson said gold resources at the company’s Phoenix deposit in Canada may rival Goldcorp Inc.’s nearby Campbell mine.
“The size of the system we’re currently defining is as large as the Campbell deposit, and the Campbell system was producing for well over 40 years,” Adamson said in a telephone interview yesterday. “The more we drill, the larger this system gets.”
Rubicon and other gold producers aim to increase gold reserves and benefit from the precious metal’s price, which climbed 17 percent in the year through yesterday. Gold reached a record $1,033.90 in March 2008 and has gained for eight straight calendar years.
The Campbell mine, one of several that Goldcorp bought in 2006 for a combined price of $1.49 billion, has produced more than 11 million ounces of gold since 1949, said Gijsbert Groenewegen, a partner at Gold Arrow Capital Management in New York.
“Major producers need to replenish their pipelines and are constantly on the lookout for big resources, and the number of 5 million-plus ounce deposits worldwide is only about 40,” Groenewegen said. Gold Arrow holds 100,000 Rubicon shares and none of Goldcorp’s stock, he said.
Rubicon rose 27 cents, or 9.3 percent, to C$3.17 at 12:04 p.m. in Toronto Stock Exchange trading. The shares earlier climbed as much as 10 percent, the largest intraday percentage gain since June 19. The shares have more than doubled this year.
Goldcorp Output
Goldcorp, the world’s second-largest producer of the metal by market value, posted output of 2.32 million ounces last year, according to the company’s 2008 annual report.
The Phoenix and Campbell deposits are located in northwestern Ontario’s Red Lake district. Rubicon is about halfway through a C$25 million ($22.8 million) exploration program at Phoenix, which will end in March, and has another C$35 million in reserve, Adamson said. The company’s largest shareholder is Goldcorp founder and former CEO Rob McEwen.
The Phoenix property may contain 3 million to 8 million ounces of gold, John Graham, a Macquarie Research analyst in Toronto, said in a note to clients yesterday. Graham initiated Macquarie’s coverage of Rubicon with an “outperform” rating and a C$5.50 target price.
To contact the reporter on this story: Rob Delaney in Toronto at robdelaney@bloomberg.net.
Last Updated: August 19, 2009 12:28 EDT
GORO production in 2-3 months?
Seems like most the pieces are there and mostly assembled. Can't be a whole lot left to do I would think. By mid next year we should have a nice production stream going along with steady drill results, profits, and dividends too?
GORO up over 5% more today. Anyone taking any profits? Me? heck no! Not even close. Much more to come here.
GORO up over 5% more today. Anyone taking any profits? Me? heck no! Not even close. Much more to come here.
Wow awesome!
Good luck nibbling at GORO, they just got their permit!
Gold Resource Corporation Receives Federal Open Pit Permit to Mine at Its El Aguila Project
http://finance.yahoo.com/news/Gold-Resource-Corporation-iw-2180287344.html?x=0&.v=1
DENVER, CO--(Marketwire - 08/12/09) - Gold Resource Corporation (GRC) (OTC.BB:GORO - News) (Frankfurt:GIH - News) is pleased to report that it has been granted the Mexican Federal permit to mine the Aguila Project's open pit deposit in the southern state of Oaxaca, Mexico. GRC targets production at its El Aguila Project in 2009, subject to equipment delivery and construction schedules.
Related Quotes
Symbol Price Change
GIH.F 3.02 -0.02
{"s" : "gih.f,goro.ob","k" : "c10,l10,p20,t10","o" : "","j" : ""} On August 12, 2009, the United States of Mexico's Secretary of the Environment and Natural Resources (SEMARNAT) granted GRC's 100% owned Mexican subsidiary, Golden Trump Resources, S.A. de C.V., federal permission to mine at its El Aguila open pit deposit.
Gold Resource Corporation's president, William W. Reid, stated, "We are very pleased to now have obtained the four federal permits necessary for the legal right to mine at our El Aguila Project. These four permits are a milestone in the progress of the company as we move toward becoming a low cost gold producer."
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 46,095,489 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan," "target," "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that commercial production at the El Aguila Project will be achieved in the time frames estimated, at the rates and costs estimated, or even at all. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-K filed with the Securities and Exchange Commission.
Contact:
Contact:Jason ReidVP / Corporate Development303-320-7708
Here is another profitable silver producer I don't think I mentioned in my last list:
Fortuna Reports Net Income of US$ 1.2 Million and Cash From Operations of US$ 5.7 Million in Q2 of 2009
Press Release
Source: Fortuna Silver Mines Inc.
On Wednesday August 12, 2009, 8:30 am EDT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 12, 2009) - Fortuna Silver Mines Inc. (TSX VENTURE:FVI - News; BVLAC:FVI) - The Company is pleased to announce that record sales of US$ 12.9m in Q2 2009 have resulted in net income of US$ 1.2m and operating cash flow (before changes in non-cash working capital items) of US$ 5.7 million for the quarter. Cost per silver ounce produced, net of by-product credits, was negative US$ 2.98 in the quarter. The Company remains debt free with US$ 31.2m in cash.
Second quarter 2009 highlights:
- Negative US$ 2.98 cash cost per silver ounce, net of by-product credits
- Historic record sales of US$ 12.86 million compared to US$ 7.77 million in Q2 2008
- Operating cash flow, before changes in non-cash working capital items, of US$ 5.69 million compared to US$ 2.47 million in Q2 2008
- Net income of US$ 1.20 million compared to net income of US$ 2.49 million in Q2 2008
- Cash position and working capital as at June 30, 2009 were US$ 31.17 million and US$ 36.01 million respectively
The Company remains debt free and its precious metal production remains unhedged, providing strong leverage to the silver price.
Jorge Ganoza, President, CEO and Director, commented, "The Company has delivered another strong financial quarter. This is a reflection of the success in our investment strategy which has developed Caylloma into an efficient operation with strong cash margins, resilient to low metal prices."
The Company has filed its financial statements and MD&A for the three months ended June 30, 2009. The full documents are available on SEDAR and have also been posted on the Company's website at www.fortunasilver.com.
A conference call has been scheduled for Thursday, August 13, at 10.05am Eastern (7.05am Pacific) to discuss the quarterly results. Details of the call are available at the end of this release.
Financial Results
During the second quarter of 2009, the Company generated record quarterly revenue of US$ 12.86 million compared to US$ 7.77 million over the same period in 2008. The volume of concentrate sales during the second quarter of 2009 was 51% more than the same period in 2008. The significant increase in sales is the result of the Company's investment plan over the last two years in mine development, processing plant expansion and infrastructure.
Operating income for the first quarter of 2009 was US$ 4.36 million compared to US$ 0.83 million in first quarter 2008. This improvement, in spite of significantly lower metal prices, is a consequence of an increase in throughput, head grades, metal recoveries, and lower operating costs.
Summary of financial results:
Three months ended Six months ended
US$000s June 30, 2009 June 30, 2009
----------------------------------------------------------------------------
Revenue 12,862 21,842
----------------------------------------------------------------------------
Operating Income 4,355 4,432
----------------------------------------------------------------------------
Net Income 1,196 142
----------------------------------------------------------------------------
Cash Flow from Operations before changes in
non-cash working capital items 5,691 9,921
----------------------------------------------------------------------------
Cash Cost per Ag oz net of by-product credits
(US$/oz) (2.98) --
----------------------------------------------------------------------------
Operating Results
In the second quarter of 2009, the Caylloma mine achieved significant improvements in metal output with respect to both the previous quarter and the corresponding quarter in 2008. Silver production was 468,823 ounces, representing 47% of total revenue. Caylloma is forecast to produce 1.6 million ounces of pure silver in 2009.
The average throughput rate for Q2 2009 was 1,146 tonnes per day, and the cash cost per silver ounce, net of by-product credits, was negative US$ 2.98 in the quarter.
The expansion project for the processing plant was concluded fifteen days ahead of its scheduled start-up and since mid April, the plant is processing ore at a rate of 1,200 tpd. The newly added copper circuit is still in the commissioning phase. It was launched in the last week of April and was subsequently halted to undergo several design adjustments. The copper circuit is now scheduled to be restarted in the month of August 2009.
San Jose Project Status
The Company is working to complete the project resource estimation during September and conclude the pre-feasibility study in the fourth quarter. A comprehensive project update will be released in the upcoming weeks.
Conference Call to Review Quarterly Financial Results
The Company will hold a conference call to discuss the financial results on Thursday, Aug. 13, 2009, at 10:05 a.m. Eastern Time (7:05 a.m. Pacific Time). Hosting the call will be Jorge Ganoza, president, chief executive officer and director, and Luis Dario Ganoza, chief financial officer. Shareholders, analysts, media and interested investors are invited to listen to the live conference call by logging onto the webcast at the Investor Calendar website or over the phone by dialing just prior to the starting time.
Conference call details
Date: Thursday, Aug. 13, 2009
Time: 10:05 a.m. (Eastern Time), 7:05 a.m. (Pacific Time)
Dial in number (toll-free): 877-407-8035
Dial in number (international): 201-689-8035
Replay number (toll-free): 877-660-6853
Replay password (international): 201-612-7415
Replay passcodes (both are required for playback)
Account No.: 286
Conference identification No.: 330289
Playback of the webcast will be available until Saturday, Nov. 14, 2009. Playback of the conference call will be available until 11:59 a.m. (Eastern Time) on Aug. 27, 2009. In addition, the call will be archived in the Company's website.
Fortuna Silver Mines Inc.
Fortuna is a growth oriented, silver and base metal producer focused on mining opportunities in Latin America. Our primary assets are the Caylloma Silver Mine in southern Peru and the San Jose Silver-Gold Project in Mexico. The Company is selectively pursuing additional acquisition opportunities. For more information, please visit our website at www.fortunasilver.com.
Forward-Looking Statements
Certain statements in this press release constitute forward-looking statements and as such are based on an assumed set of economic conditions and courses of action. These include estimates of future production levels, expectations regarding mine production costs, expected trends in mineral prices and statements that describe Fortuna's future plans, objectives or goals. There is a significant risk that actual results will vary, perhaps materially, from results projected depending on such factors as changes in general economic conditions and financial markets, changes in prices for silver and other metals, technological and operational hazards in Fortuna's mining and mine development activities, risks inherent in mineral exploration, uncertainties inherent in the calculation of mineral reserves, mineral resources, and metal recoveries, the timing and availability of financing, governmental and other approvals, political unrest or instability in countries where Fortuna is active, labor relations and other risk factors.
ON BEHALF OF THE BOARD
Jorge Ganoza, President, CEO and Director
Fortuna Silver Mines Inc.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
I got a PM question about my favorite junior silver producer that has exploration potential and while I don't have the ability to PM and need to publicly reply anyway, I thought this would be a good general question for the board as well. So to start it off here are my quick thoughts about my silver related holdings:
SLW is in a whole different class with its silver stream model, but I view it as a very safe silver play with great leverage on any further increase in the price of silver.
FR.TO is a pretty familiar one to this board and admittedly hasn't quite lived up to expectations so far, but they've got a lot of work to do and are getting through it. I still view it as a solid core holding.
While GORO.OB profiles itself as a gold company, silver is certainly going to be a sizeable portion of its revenue, and exploration potential, going forward.
Now a couple not discussed much here:
EXK Endeavour continues to ramp up production for several years now and has a very nice land package. They had some problems with grades and increasing cash costs for a bit, but it seems they have that back in control now. Their IR guy Hugh is one of the most knowledgeable not only about the silver industry, but also about how they stack up in relation to other companies in whatever metric you like. A lot of information can be gained from him with a quick phone call or maybe even an email asking for his slides and other data files.
IPT.V Impact is a small under the radar producer that also continues to reach new record high production levels and also continues to expand with exploration of a nice land package. Their management is solid as far as fair practices along the lines of options and financings, but they don't know how to promote and sell their company whatsoever. It seems they count on the waiting for the market to realize their value for them. I hope it pays off as the relatively tiny silver sector gets more and more attention.
OK.V Orko has an awesome land package and exploration potential with an already sizeable amount of proven reserves. They count on JVs for actual production which can be a downfall for many, but these guys have been able to strike a deal or two and it's paid of, most recently with Pan American.
SVL.V SilverCrest, Abcourt ABI.V, and Silvermex SMR.V I at some point saw enough potential to take small positions in, but have not seen much since taking those positions to add to them.
Those are my quick thoughts at least, probably an error or two in there as its just off the top of my head and not detaield re-DD. I look forward to other board member thoughts on these silver companies and especially others I haven't mentioned that one may feel should be part of this conversation. There are certainly a few more better known names out there, most of which I dislike due to horrible management or the fact that their market caps are too huge already. This is the "junior" miner board after all.
nice chart, long and strong.
Nice day! How much further will it go?
With Comrade Congress approving a measure to give away more cars, the speculation is that the dealers may actually burn through their supply glut and get the automakers producing again. More new cars, more catalytic converters needed, more palladium needed... For the short term at least, problem is that anyone thinking of buying a car in the next few years will do it now and once this dies out, so will the car industry, again. Delaying the inevitable, but the play could be to go long platinum/paladium stocks, and then short them after a nice run once the euphoria wheres off.
FYI: Canadian markets are closed on Monday due to a Civic Holiday.
EAS.V up nearly 30% to $1.55
Unfortunately I never pulled the trigger on this one, but I still follow it. I think this goes to show that insiders often have non-company related reasons to sell.
East Asia Minerals Encounters 3.29 g/t Gold Over 66 Metres in Wider Interval of 1.71 g/t Gold Over 158 Metres From Initial Diamond Drill Testing of Miwah
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 07/29/09) - East Asia Minerals Corporation (TSX-V:EAS - News) reports that assays have been received for the first two diamond drill holes at its flagship Miwah Gold Project in Aceh Province, Northern Sumatra. These results support the interpretation of shallow out-flowed, laterally extensive gold mineralization controlled by multiple northerly trending higher-grade feeder structures that cut steeply through the 1.2 kilometre long (east-west) Miwah Gold Zone. Drill hole EMD001 encountered 1.97 g/t gold over 57.1 metres, including 2.78 g/t gold over 38.3 metres. EMD002 encountered 1.71 g/t gold over 158.0 metres, including 3.29 g/t gold over 66.0 metres.
EMD001 and 002 were drilled in opposite directions from a common drill pad located approximately 200 metres east of the currently mapped western end of the Main Miwah Gold Zone (Refer to map on Company's website at www.EAminerals.com). The mineralization is open.
EMD001 was drilled east with a 90 degree azimuth and 70 degree dip to 159.3 metres. Gold mineralization was encountered from 10.9 to 68 metres downhole depth where it is locally cut off to the east by a northerly trending structure. The mineralization is open and interpreted to be contiguous to surface where several rock sawn samples including 9.22 g/t gold over 14 metres were encountered; and is open to depth based on historic drill results from holes collared 25 metres to the south and 60 metres lower in elevation. In addition the mineralization remains open to the west, north and south.
EMD002 was drilled west with a 270 degree azimuth and 55 degree dip to 200 metres. Gold mineralization was encountered from 8.3 to 166.3 metres downhole depth (with 3.29 g/t gold from 9.0 to 75.0 metres) and remains open in all directions. The mineralization is interpreted to be contiguous to surface where several rock sawn samples including 2.86 g/t gold over 18 metres were encountered, and open to depth based on historic drill results as described above for EMD001.
EMD003 was drilled from the same drill pad as 001/002 with a northwest azimuth (305 degrees) and 47 degree dip to 200 metres. This hole was designed to test the northwest extension of silica alteration and gold mineralization from EMD001/002, and where up to 27 metres of 4.25g/t gold was encountered from rock sawn channel samples. Assays are pending.
EMD004 is currently in progress with a west azimuth (270 degrees) and 30 degree dip to validate a historic hole which encountered 71 metres of 1.42 g/t gold. EMD004 was collared 25 metres to the south, 65 metres to the west, and 60 metres lower in elevation from the EMD001/002/003 drill pad. In addition to validating the historic gold results, this hole will be extended further west to test the interpreted west bounding structure (Camp Fault) to the Main Miwah Gold Zone. This is the same structure that hosts 24 metres of 83.59 g/t gold in a rock sawn channel sample located 340 metres to the south in the lower elevation South Miwah Bluff Gold Zone.
"We are greatly encouraged by the width and tenor of the Miwah gold mineralization", stated Michael Hawkins, President and CEO of EAS. "The mineralization we intercepted supports the Company's earlier confidence that high-grade structural feeder controls on the Main Miwah Gold Zone will result in higher overall grades than the 1.2 g/t gold average from surface channel sampling. We have achieved 3D drill core validation of the potential for a large lateral gold deposit along the 1.2 kilometre Miwah Gold Zone. In addition, the South Miwah Bluff Gold Zone appears to represent exposure of the underlying higher-grade gold-bearing structures and displays the upside potential for continued exploration of the prospective Miwah land tenement. It is our intention to test these zones over the coming months, and with success, to progress towards drill definition of NI43-101 compliant resources".
Drilling is progressing well. The initial program will comprise 10 holes for a total of 2,000 metres to provide a 3D validation along the currently defined 1,200 metre east-west extent of the main Miwah gold-bearing silica zone, and an additional 2 scout holes to the south. This program will provide a further indication of the gold resource potential and the framework for follow-up drilling.
Miwah Background
The Miwah Gold Prospect was partially defined by approximately 3,000 metres of drilling in eleven holes by a previous explorer in 1997. All holes drilled during this program intersected significant alteration and mineralization with intercepts including 71 metres of 1.4 g/t gold and 58 metres of 1.1 g/t gold. The previous explorer suggested potential for 100 Mt at 1.1 to 1.2 g/t gold, however a review of the historical data indicates that early drilling was parallel to higher grade (greater than 5 g/t gold) structures at surface. Hence, in addition to greater mineralized tonnage, significantly higher overall grades are anticipated from better geological understanding, results of the Company's detailed sampling, and properly oriented drill holes.
Based on the Company's work Miwah is resolving into two components; a large 1,200 metre long, 300 to 400 metre wide, approximately 200 metre thick tabular zone; and vertical feeder zones that are beneath and cut through this. Within the tabular zone East Asia has over 2,000 metres of rock sawn channel samples which average 1.2 g/t gold. Ongoing sampling verifies the Company's confidence that higher overall gold grades can be achieved due to the presence of multiple high grade rock sawn channel samples throughout the strike, including 4.11 g/t gold over 200 metres at the eastern part of the gold zone, and 4.35 g/t gold over 27 metres at the western part. In addition to the tabular zone the Company has begun to characterize some of the feeder zones, with rock sawn channel samples including 83.59 g/t gold over 24 metres and 20.14 g/t gold over 12 metres. These feeder zones have great potential to develop into substantial tonnages of higher grade gold mineralization in an area adjacent to the main Miwah Gold Zone.
The Miwah Property is in a very similar volcanic setting to the Martabe gold-silver deposit, also located in North Sumatra (Purnama and Baskara resources: 127.8 million tonnes at 1.4 g/t gold (5.5 million ounces gold) and 15 g/t silver (60 million ounces silver), and the alteration system is of a comparable size. Miwah also exhibits a likeness to the size, style and geometry of the alteration system developed at the Pierina gold deposit in Peru (67.7 Mt grading 2.98 g/t gold and 22 g/t silver, giving a total 6.49 million ounces gold and 47.9 million ounces silver).
Samples reported were assayed at Intertech assay laboratories in Jakarta. Drill assays for EMD001 are final assay numbers, and drill assays for EMD002 are preliminary numbers. Lionel Martin, P.Geo., the designated QP within the meaning of NI 43-101, has reviewed and approves the content of this release. East Asia has not verified the classification of the resource references and is not treating them as NI 43-101 defined resources verified by a QP. Although the references of resources are relevant to recognizing the potential of the Miwah project, they should not be relied upon.
About East Asia Minerals Corporation
East Asia Minerals (TSX-V:EAS - News) is an Asian-based, Canadian mineral exploration company with gold and copper exploration properties in Indonesia, and uranium exploration properties in Mongolia. In Indonesia the Company has a 70 to 85% interest in six advanced gold and gold-copper properties located in Aceh Province, Sumatra, and Sangihe Island, North Sulawesi. Two of these, the Sangihe (Binebase-Bawone) and Barisan 1 (Abong) gold projects, are being advanced to define NI43-101 compliant resources. The Company owns twelve uranium properties, including the advanced Ingiin-Nars, Ulaan Nuur and Enger uranium projects, four phosphate properties, and a 75% interest in the Khok Adar copper oxide discovery in Mongolia. East Asia currently has 64,855,372 shares outstanding. Its shares are listed for trading on the TSX Venture Exchange under the symbol "EAS".
Forward Looking Statements - This News Release contains forward looking information within the meaning of the British Columbia Securities Act, the Ontario Securities Act and the Alberta Securities Act, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with our expectations, metal recoveries, accidents, equipment breakdowns, title matters and surface access, labour disputes or other unanticipated difficulties with or interruptions in production, the potential for delays in exploration or development activities or the completion of new or updated feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations (including uranium, fuel, steel and construction items), currency fluctuations, failure to obtain adequate financing on a timely basis and other risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. The words anticipate, believe, estimate and expect and similar expressions, as they relate to us or our management, are intended to identify forward looking statements relating to the business and affairs of the Company. Except as required under applicable securities legislation, we undertake no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
To receive or stop receiving EAS news via email, please email Info@EAminerals.com and state your preference in the subject line.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Contacts:East Asia Minerals Corporation - VancouverMichael HawkinsPresident and CEO1-604-684-2183Hawkins@EAminerals.comEast Asia Minerals Corporation - TorontoNick KohlmannCorporate Communications1-416-792-8734Kohlmann@EAminerals.comwww.EAminerals.com
Market seems to be taking the news prertty well, up over 12% right now!
Oh I don't know about that. Nobody here seemed to care about my big pitch for TLR that has more than doubled since I first started talking about it here and I think it still has MUCH further to go, but RBY seems on a similar path. I'm feeling take-out jitters as a catalyst for that one that have no end in sight.
Been away from the board for a month or so and just got caught up on all the posts. Yet after reading all that I've only got one word to say - Rubicon (RBY)!
Thanks for the update. Bill Reid has good reason to always be optimistic. He is building a world class gold mine at less than half the cost and time of most others. Permit etc. will come soon enough.
I'm considering taking profits here as well, but there must be something making it run. It could go much further. Maybe a buyout in the works? The majors need to replace their reserves. Anybody have any targets as to how far this could go in the short term?
Yet another great day here again, not that anyone seems to care.