Q1 Estimate (US$0.07-US$0.08)Copper production of 6.33 mm lbs. at average price of $2.70 equals revenues of $17 mm. Net out 13% royalties and you get $14 mm.
Given that moly averaged around $28/lb. (up from $25/lb. in Q4/06) I would say ARG's cash cost, net of byproduct credits, was $1.00/lb.
So cash costs of $6.5 mm, plus $1.5 mm for G&A and D&A for $8 mm total cost.
Pre-tax profit of $6 mm.
Quarerly adjustments. An extra $5/lb. for moly = $0.5 mm. An extra $0.45/lb. for copper (strong close to Q1 above $3.00 vs. Q4 close of $2.50) = $3.0 mm.
So pre-tax profit of $9.5 mm. After taxes (16%) = $8 mm. Divided by 95 mm shares = roughly US$0.08 (maybe US$0.07)for Q1/2007.
In Q2, based on 8 mm lbs of copper and 0.15 mm lbs of moly, and using copper price of US$3.30 and moly of $30, I get operating profit of $15.0 mm. Subtract $1.5 mm for G&A and D&A I get $13.5 mm. After taxes its $11.5 mm. That's $0.12/share before any adjustments. Given copper higher in Q2 likely add another couple of pennies.