GREY:PTQMF - Post by User
Comment by
goldpigon Apr 20, 2011 6:47pm
160 Views
Post# 18464955
RE: Q4 and Q1 large production increases
RE: Q4 and Q1 large production increases I know I speak for many of us in thanking you for your detailed analyses of exactly where we stand in terms of production status.
Also, to Best and several other posters for clarifying the several categories of mined gold.
The company has done an inadequate job of describing their ramp-up in production, and the share price has been unfairly depressed.
The good news is that we remain on track for production goals, and that mined ore is being stockpiled for the wet season in late summer when mining but not milling could be temporarily halted or slowed.
Most of us missed the fact that PDI,s new mining equipment is now in the process of boosting the mining rate by a factor or 7 or more while creating the huge stockpiles of mined ore that will be necessary in late summer when both plants will be operating at full capacity.
Best's estimates of 2011 production rate is 140,000 oz and yours is 156,000 oz which is quite close and consistent with former views.They confirm we are on track.
As I now see the situation, it is very positive and quickly improving.
Cash costs are coming down despite the costs of ore stockpiling.
We made a profit in Q3 and no longer have any debt.
The balance sheet is much stronger and cash levels higher.
PDI is becoming a major business as a contract miner.
Reserves and resources are increasing and gold production capability will double within 3-5 months.
The wet season will no longer be a production loss problem.
We will have better and better quarters for the next several quarters.
Gold is increasing in price.
Not least of all is the 2.2 million oz of gold added by the Iberian acquisition and its potential to add another 100,000 oz of gold production within 18 months.
Even better, silver is over $45 per oz and predicted to hit $75 per oz.
With 46 million oz of silver, the Iberian mine can almost be considered to be a significant silver producer as well.
Once these facts become obvious, the share price should respond quickly.