GREY:MLKKF - Post by User
Post by
godisgr81on Aug 13, 2010 8:54pm
974 Views
Post# 17350397
ML in the near future
ML in the near futureWe had a great Q2 in terms of operating and cash perspective ($19Mill profit).
Non cash charges include Amortization of mill facility, accretion on notes, stock based compensation etc. This will likely not change much in the coming Quarters. We have 25 yr. amortization on facility including equipment etc.
We will also likely start paying taxes in the coming 16 to 20 months. Good thing we have some losses to offset profits.
Rougher Flotation cells will be in place by Q3 and commissioning period will likely start at the earliest in late Q3 or early Q4 2010. We will definitely benefit in Q4 production numbers. Watch our Revenue jump along with CU and Moly prices. Demand for Moly will improve starting in October and will likely hit $18 - $20 this year(at least I have my fingers crossed). We may see 10 pt in Cu recoveries and up to 20 pt in Moly and also con grades will increase. Once we start delivering Phase 2.0 design targets, we should be out of the penalty box. In addition, later this year sp should reflect El Pillar. Why you ask? ML will likely start construction of El Pillar in middle of 2011 and more than likely will be financed via Debt and cash on hand. This will also be a project finance rather than corporate. Cost will roughly be around 200 million and some talk that same syndicate from our current debt holders will finance El Pillar. I and ML management expect NO further dilution.
So far ML expect similar production number for Q3. They have also tightened up revenue recognition on sales going offshore. Revenue should be similar but will depend on prices of CU and Moly. We did have a jump in revenue in Q2 via from Q1 ($7million) this was late transfer of title from Q1 sales.
Yes the market is jittery now but this will change as we move forward and we always get a big bump in commodities come Nov through April. Lots of money on the sidelines and sooner or later the hedge funds and MMs will have to deploy or will get a nasty calls from clients looking for better gains. I say we are now good to go and should pick up steam either in Sept or October of this year. Stay Long My Friends.
By the way, I enjoy sharing any information so that we may better evaluate ML and I really appreciate all the great posts and hope this will continue for a Long Time.