Annual Meeting Highlights-884,000 lbs cu shipped in April from LV at $3.75/lb
-2 million predicted for May
-3 million predicted for June, 4 M for July and 4.5-5.5M hereafter
cost of production .65-.70/lb
-more land being negotiated around LV and FD.
-cash flow headed toward $150 million/yr
-Terrazas expected to be in full production by 2009 with 150 Million lbs zinc and 40 million lbs copper per annum over 13-15 yrs. Bottom of ore-bearing sulphite zinc-copper zone still open.
-cores for San Javier look promising
About co. in general:
-options outstanding for only 3 million shares.
-debt of $36 million, but $20 Million in cash
-could pay off loan within a year if they choose
-could finance Terrazas without going for further funding
-if prices remain respectable 2009 could be a stellar year with both
LV and Terrazas going full force.
-management more optimistic about the future of zinc prices than copper, as a pronounced supply deficit is apparent over the next few years.
My personal comments are that metal prices have a long way to fall before Constellation will be affected. However due to the general ignorance of the market, their shares could be unduly punished regardless. I'm holding for at least 4 years, because when both mines are opened this baby should be raking in the money. Shareholder attendance at the meeting was very poor. Too bad, because a lot of useful information was passed on.