Atna Res Ltd ATNAQ

Time to reverse the downward trend....

[the_ocotillo]

(I thought I posted this yesterday, I wonder where it went)....... 

Atna stock price keeps trending lower despite what should be an improving financial condition. Let's hope that they can confirm their 2010 production guidance of 36,000 ounces when they release second quarter results. (End of this week hopefully?) I am extremely pessimistic that they can hit that 36,000 ounce target but I really would like to be wrong on that matter.

Some of the points that they made in the first quarter MDA release......

>>>“The production target for 2010 is 36,000 to 40,000 ounces of gold at an average unit cash cost of production in the range of $600 to $650 per ounce of gold”.<<<

>>>“Total cost of production is expected to remain stable as the mine site is now fully staffed and all expected production units are currently operating”.<<< (Total cash cost of production was $ 5,615,300 in 1Q 2010).

>>>“Production is expected to be approximately ten percent higher in the second quarter of 2010 compared to the first quarter of 2010 as the number of ore tons under leach increases and production stabilizes...”<<< (They produced 6,031 ounces of gold in the first quarter).

>>>“On a consolidated basis the Company expects to generate a net loss for the second quarter of 2010 and is expected to generate quarterly profit thereafter”.<<<

Good news would be a profit in the second quarter on higher than expected gold production. Great news would be forecast production of 11,000 to 12,000 ounces for the third and fourth quarter which would help put some cash in the “kitty” and eliminate the need for more debt to finance future mine development.

In regards to Reward...

>>>“The critical path task for the initial phase of development is construction of a tortoise exclusion fence and a sweep of the area by biologists to remove any tortoises that may become adversely impacted by construction activities. On completion of this task, scheduled for August 2010, work on well and water supply development, power line construction, and access road upgrade will require approximately three months for completion”.<<<

Hope everything with the “tortoise roundup” went well is on schedule, and they will commence construction soon. I am skeptical on 20,000 ounces of gold being produced from Reward next year, but again would like to be proved very ignorant and wrong. If gold prices stay above $1000 an ounce, there is absolutely NO WAY that Atna could produce about 55,000 ounces of gold at year end 2011 and still be trading under a dollar a share.