RE: predictions I talked with IR this morning. Everything production-wise seemed to be going well and I expect we may even see a slight increase (10 days of holiday rest last quarter).
When I asked about closing the hedge, he agreed it was a bit of a play on the gold price, but also claimed that Investec was not allowing them to even begin exploration on the other areas of the property due to restrictions with what they could do with their money.
Exploration has not begun yet (other than ur usual drilling), but the new technical advisory team has been to the property and feel there are several 'elephant' targets that warrant investigation. He felt very confident that exploration drilling would be underway by the end of summer at the latest. This is the one piece that could be an absolute game-changer for SAM. This thing is a triple from here if things just stay steady. Imagine if they hit a big target and find some decent grades? I never really thought of this play as having bluesky potential, but the more you read about the property, the more you realize San Martin doesn't just have to be a boring little play forever.
I wouldn't look for a huge spike after these financials, but in two more quarters when we have our first report with no hedge for a full quarter, the picture will be much clearer.