Good analysis to readI stole this from the Yahoo board.
TGB results were held down by higher than forecast costs of production. On the surface disappointing results, but there seem to be some mitigating factors. The SEDAR filings show costs per pound of US$1.43 versus their $1.33 forecast ... it's not clear to me why, but this past quarter was forecasted to have much higher than normal production costs anyway according to the filing ... must be some one time items they'll hopefully clarify on the conf call. Going forward they are forecasting only US$1.15 per pound costs of production, so a full $0.28/lb lower than this past quarter.
Average sales price for copper was $1.88/lb, versus current prices of around $2.25/lb.
Sales of 16.4M lbs were 22% above 13.4M production due to inventory left over from last quarter.
Sounds like the March fiscal Q2 should be much better IF they can come near their forecast of $1.15/lb production costs and sell for around $2.20/lb (a huge $0.60/lb increase in gross margin over this quarter) ... production is forecasted to rise from 13.4M pounds last quarter to 15.2M this quarter .... however diluted share count will also be higher as more warrants go 'in the money'.
I'll be buying back shares if the stock retreats too much on these numbers .... it will be interesting to see how the stock reacts today. Some investors were looking for a blowout quarter and results were well short of that !
The conf call should be interesting, but is not until 2pm on Thursday ....