RE: 900 ounces? N"TMM is all bought and paid for ..... TMM also has a nice land package and projected to make 60 million this year ..."
Actually not true. TMM financed the late stages of mine construction and start up with a loan from Sprott. To pay it back we still owe Sprott 20,000 oz of gold spread out over a 1 year period. From the announcement:
"The Notes shall be repaid in 12 equal monthly installments commencing on the seventh month after the advance of funds. Each payment shall be equal to the value at the time of payment of 1,667 ounces of gold (20,004 ounces total)."
It is worth keeping in mind that not only do we give up 20,004 oz full equivalent cash value but we also have to pay the cost of mining that gold so the hit to the company's finances is say $1200 (POG) + $412 (extraction cost) = $1612/oz x 20,000 oz = $32 million. Most of this payout will occur this year with some spilling over into 2011.
This debt obligation has to be factored against any profit expectations in the coming quarters. In addition many people still seem to be confusing the profit of the mine with the profit of the company and they are two completely different things. The profit of the mine is simply the difference between the $412/oz extraction cost and the selling price of the gold. The company's profit which is what gets reported has to in addition subtract the Sprott repayment mentioned above, and all the other company overhead and expenses.
I wouldn't expect the company's reported profit to be all that impressive initially. There should however be significant improvement going forward with the Sprott debt gone and the ramp up in production.