Guanajuato Silver Company Ltd V.GSVR

Capital Cost For Production Improvements

[ErinBrockovich]

This is what Lex is talking about. Expenditures are expected to go down. Efficiencies have been found and paid for. 

 

@lexcon They aren't "blowing cash" As James has clarified more than once, they are operationally cash positive (the amount they receive from production sales is more than operating expenses). The reason for the negative numbers each quarter is the capital spend they are doing to refurbish the mines and mills and make improvements to increase production. As those production improvements slowly ramp up output and the need to spend more on the improvements decreases they will be positively performing. Unless they have issues that absolutely need to be fixed (and at this point it doesn't look that way, its primarily planned improvements) I'm not concerned as long as operational costs are below revenue from sales. In a worst case they just stop the capital outlays

[ErinBrockovich]

Clearly, it would be sound policy to find efficiencies, and reduce capital outlays. I am expecting that to occur within the next couple of quarters.