Lionore announcement is staggering. At the precious metals conference in Toronto a few minutes ago Lionore confirmed that they expect to produce 12,500 tonnes of nickel in the fourth quarter compared to 7,800 tonnes in the third quarter. They confirmed that fourth quarter earnings will top the .68 of the third quarter and that they now have over $300M in cash on hand. 12,500 tonnes would translate to nearly 28M pounds of nickel which would translate at $15 per pound to $420M in revenues. If you add $50M for repricing gains and $25M for gold Lionore could have nearly $500M in revenues this quarter. I expect earnings of .90 this quarter. Lionore is holding a CC tomorrow to announce that they expect production of just under 45,000 ounces in 2007 compared to 34,100 ounces in 2006. They expect production of 60,000 ounces in 2008 and 90,000 by 2011. BTW, the Capstone production figures in that release were for moew than one month. A little farthur down they gave the actual numbers for October which are in line with their projections except that zinc is running higher than expected.
