Decent 12Q3 I'm satisfied with the numbers, too:
Cash costs down from 1313 to 1261 $/oz despite much lower grade.
Total production costs down from 1480 to 1429.
Segovia mining costs down from 277 to 166 (which i find huge, although the grades went down; once the grades will go up again... ;-) ).
The Maria Dama mill seems to work well now.
The installation of the additional flotation cells also progressed seamlessly (i gues not a trivial task at an old mill).
The numbers show a positive trend and that the measures are unfolding in the right direction.
The close of the 100m financing of Segovia also shows me, that they begin to deliver, what they promise.
What especially impressed me, how open they were to hard questions at the webcast, e.g. the scarcity of cash and when and why the CF is expected to become better.
I almost fell from my chair, when i heard the theoretical additional potential @Marmato because of the latest drilling results.
Currently we are priced like an almost finished company. I don't know of any other miner, with such a potential and my guess is this:
12Q4 will not be exciting, too, since the higher grade ore at Segovia must be opened and the new flotation circuit must be completed.
I expect with the beginning of 2013 a much higher consistent throughput @Maria Dama and then the higher grade ore also should come back...
And once this is developing and the numbers show, that even old Maria Dama will allow to pay back the interest and debt, i think we will see that Marmato will become priced in, too... Because now nobody had any trust in the management and therefore pessimism is priced in. Once this begins to turn, we should not only see the improvement from the hard earnings numbers, but also pessimism turning into neutrality and then into optimism for Segovia@200k and then maybe even into optimism for Marmato, if the PEA at year end is good.
Finally in this last quater the management began to deliver what it had promised: cash costs down, expansion on track, Segovia financing closed.
So i think - if price of gold stays above 1700 - the worst should be behind us.