RE: VictorinoNiceGuyEddieO,
I'm not relying on your advice as to what I should expect, and that I should scream blue murder if your expectations for Q3 don't materialize.
What I expect for Q3 is a continuation of the company's success in meeting their business plan. Like many others that follow the LBE progress, I do not expect that Q3 will display the potential of LBE operations for the long term. For one thing, the current rated capacity did not commence until July 15. I have been involved in enough business start-ups, to realize that the initial periods of a new operation, or the initial periods of a restructured or expanded operation, seldom reflect the potential of the "normalized" operations in future months. There are "bugs" and first time kinks to get ironed out - I expect that this applies to mining and milling at increased capacity - so I'll be patient in assessing long term potential in the first periods of operation. In LBE's case, there are other implications, as mentioned by Nickel77 and others. Processing the lower grade ore that is being removed to get at the higher grades. When the processing capacity is capped, it is impossible to generate income at potential levels, when dealing with lower than averages grades.
Although your expectations may be high for Q3, I find it interesting that you see the potential to reduce liabilities by $10 million, in the quarter that present capacity commenced. To reduce debt by $10 million during production growth, means that you rate LBE as having great potential. Just think what will be added to potential when LBE hits the higher grades at McWatters - and the considerably higher grades at Hart later on. And with the expected 33% increase in mill capacity on top of that! And the reduction in debt costs, as dbet as reduced! I think you may be more of an optimist than me on LBE potential!
Anyway, I'm not judging my investment on the results of the first quarter or first year of production. I'll patiently wait for the actual results, and will be interested in what management has to say about the results and more importantly, the future implications and potential. I'm invested for the long term, if I listened to posters like you, I wouldn't have invested in the first place. When my investment timelines mature, that's when I'll assess my decisions. Whatever happens, I won't be screaming blue murder. If my expectations aren't met, I have no reason to believe it will be due to a lack of effort by management. And no one held a gun to my head forcing me to invest - I'll take credit if my expectations are met or exceeded, I'll take responsibility if they are not.