BWR-Reported 7c diluted for Q2. I was looking for 10c, but here is what I see from the detailed PR:
Zinc production was down 9% from Q1, much of that was due to lower grade ore. Zinc in the ore mined was 5.8% vs 6.2% the previous quarter. Most of the drop was at Myra Falls. Company says they expect to get into higher grade ore as the year progresses.
While zinc production was down 9%, zinc sales were down 40%! It looks like what happened last quarter with copper has happened with zinc this quarter. The company does not record sales until the product has been shipped, delivered and the title has been transferred. There must be numerous shipments of zinc that have yet to be recorded and they should show up next quarter. Had sales matched production, profits would have been much higher. This is a quote from the PR: "The estimated net revenue for concentrate shipments that were not recognized as revenue is approximately $57.9 million as at June 30, 2006."
BWR realized $1.32/ lb for the zinc it did sell vs. average LMEprice of $1.50. In Q1, they realized an average of $1.01/lb vs an average LME price of $1.02. Much bigger difference this quarter. Again, I think that much of the price difference in Q2 is related to all the zinc that has not yet been recognized as revenue.
I'm looking forward to the conference call but the results are understated from a quick perusal of the bottom line from what I can see.
