TMM's Press Release and the next month...TMM's PR yesterday afternoon was fantastic for a number of reasons:
- Gold produced was the highest since 2014. Gold produced in H1 exceeds all expectations with over 50k produced. They should raise guidance for this FY gold production
- Tonnage mined is again, minimized, resulting in reduced costs for the quarter. Strip ratio at 2~ is great. This is significant and will be seen, heard and acted upon once the financials come out.
- Gold was sold at $100/oz higher than last Q. I was hoping for a higher average price, but am ok with the average
All numbers provided yesterday show us this Q Financials will exceed all expectations and analysts will have to adjust their narative accordingly.
SF direction that the can achieve desired margins at current gold prices is significant, although I would have liked to see a more definitive statement. That said, Backens, for the first time, has opened the door for this to happen. He's a conservative mine, so I expect institutions to take notice considering they all understand where gold is heading in the post-Brexit world.
No mention of Ana Paula, so I suspect something is being worked on and a distinct Ana Paula PR will be forthcoming.
From now til the financial release will be very interesting, and I expect to see some decent gains despite the soft summer market.
Too bad gold tanked overnight. I expect it wil rebound during the day and TMM will benefit this afternoon from the PR and the rebound in gold price.
Holding long.
B