RE: Second Quarter Financial ResultsThe market is reacting to distressed selling in silver overnight. Rumor is that an Asian hedge fund was forced to sell a silver position in a margin call. The greater than 11% drop overnight certainly supports that rumor. All silver producers are down because of the selling in silver.
In response to the follow-up question about what capital expenses they could have, you need to realize that exploration drilling and incremental improvements to their mines and mills are all capital costs. If the company is spending money to find, extract, or improve effeciency on their mines that money spent is likely a capital cost. It's the nature of the business, and frankly I'm surprised so many investors are expecting these emerging silver producers to be showing a profit. If you want a profitable and boring silver company, look at SLW or the like. If you want growth, expect the company to plow more back into finding and extracting resources than their operational cashflow. That's how it works, imho.