RE:RE:RE:RE:RE:Thoughts on Q2 ReportJCSunsfan wrote: nofluff wrote: lets say copper was 3.20 u.s average. The collar would b 1.00 cad oer pound.
To net 15 million cad. they would have produced 15 million pounds.
nf
Listened to the conference call. They cashed out their July puts and recast for the rest of the year at $3.75 rather than $4, taking the $15 million cash now. That's a bullish position on copper, expecting the prince to increase over the second half of the year.
I agree with that move. In effect they took an advance on the value of the puts for the second half of the year, but if copper prices go up, they reap that increase.
So outlook for Q3. More production expected, also they have done extra drilling to confirm.
There will be a financing payment in Q3.
An extra $15 million from the puts will be realized in Q3, maybe more.
C1 in Q3 is expected to be around $2.20/lb rather than the $3 plus in Q2.
EPA is now telling them the permit should come the week of the 14th of August, but that is only one date in a long line of delays from the EPA. They had previously been told mid July, then the week of Aug 7, now the week of the 14th. The EPA is getting more specific anyway.
Materials are arriving on site at Florence and it is looking like a legit construction site right now.
They have an additional $20 million in the second half to pay for Florence equipment already ordered.