RE: Third quarter results.The numbers do seem a bit disappointing. It's mainly the cash cost / ounce which I had hoped would be better, since we already knew about the lower production from the previous NR. After reading the whole release though I don't feel that discouraged. It implies that grades and production are going to be higher this quarter, and by next quarter the shaft rehabilitation is complete and then it's off to the races. I talked to the fellas at PDAC this year and they were quite explicit about wanting to set conservative targets which they can meet or exceed.
"As reported in the Company's press releases of October 8 and 22, 2009,the Galena Shaft rehabilitation resumed on July 27, 2009 and continuesas planned. Repairs and installation of the concrete lining advanced 52feet during the third quarter of this year. As of November 24, 2009there is now approximately 28 feet to be excavated and lined withconcrete in order to complete rehabilitation, expected by February 1,2010."
They have been averaging about 1 foot / day on the rehabilitation, so with 28 feet to go, even making allowances for the holiday season, I think this will be complete in early January, well before the target date. It seems as though a lot of holders were selling in anticipation of the disappointing numbers, so I think the stock should hold steady, continuing the consolidation phase which is soon coming to an end. Tax loss season should not effect us since basically no one is at a loss for the year on this company.