GREY:LACHF - Post by User
Post by
RedHorizonon Feb 09, 2009 11:59pm
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Post# 15765725
Very important
Very importantI spoke with Martin Amyot last Friday. In the next 5-6 weeks we should expect several news releases.
On February 17th LMA will announce production guidance for 2009. In late March they will announce their revenue and EPS data for the fourth quarter of 2008. There may also be news coming out on the VMS project at Hassai.
Most importantly in my eyes though he stated that the company expects to have a full year of production from WHITE FOIL in 2010. He did not state how many ounces that would be, nor what the life of mine would be. That will be announced in the coming weeks.
My guess is that White Foil will begin production in late 2009 and achieve commercial production in 2010. Again I am guessing but I think White Foil is good for 50,000 ounces per year based upon older company presentations. I am not really sure so don't criticize me if I am wrong when they make their announcements. The point is that for 2010 we should have well in excess of 100,000 ounces of production coming from 4 mines. I also think that having 2 mines in Australia and 2 in Africa is a risk reducing feature which should increase institutional demand for LMA.
The original goal was to be at 111,000 ounces from the existing 3 mines in 2009. Let's say they don't do that in 2009 but are able to do it 2010. So for 2010 we have 111,000 ounces + White Foil. If we use 50,000 ounces of production for White Foil then we are at 161,000 ounces company wide. That quite frankly is awesome for a company with a market cap of $45 million US.
It is also a fact that producition costs at Australian mines have come down in US$ terms since the Australian dollar has been clobbered and diesel fuel prices have followed oil down. It seems that LMA has momentum not just in the stock price but because they are actually getting things done at the operating level.