Update from Richmond Club Presentation on WedHi all,
I just returned from Keith's presentation at the Richmond Club in Toronto. A lot of info, most of it common knowlegde and has already been posted and/or discussed here.
Cash costs are currently in the high $5 range and continue to drop towards the high $4 range as production increases.
I was surprised to see that they are still targetting 6M oz of production for 2007 and 11M oz for 2008.
La Parillla will be producing at 800 tpd by November for an annualized 2M oz.
The FSR San Martin mine is targeted for 2M oz for 2006 and 2007 and 3M oz for 2008.
The new acquisition (La Encantada - to be closed Oct. 3rd) has a production target of 1M oz for 2007 and 2M for 2008 once a new mill has been built and some of the processes tidied up.
Also, the plan for the Chalchihuites group of properties will be supplying 100tpd of high grade ore to La Parilla to improve recoveries.
Totalling those gives FR 5M oz for 2007 and 7M for 2008. I asked Keith where they exepct tp pull the shortfalls in production from and he indicated that they are still on the acquisition trail.
The fate of Dios Padre will be decided in the near term in a discussion with the board.
Had the pleasure of meeting Ramon Davila as well. He mentioned that they are on target time wise and on or below budget with all current operations.
Sticking with this one for the long term and continuing to buy at these prices.
That's all I've got for now...
J