Q2 Should Be Even BetterAlong with a higher realized price of gold, cash costs should also fall quite significantly with higher grades being mined and fed. Lately management has met expectations in their guidance and I suspect that they will beat what I consider conservative estimates going forward. I've been hoping for more liquid pullbacks to scoop up more shares but this rocket is defying gravity. Guess there aren't many suckers offering shares as the stock goes up and the low volume is encouraging.
Production and costs
"Production for the quarter was 12,937 ounces of gold, at the higher end of expectations for the quarter of
between 12,000 and 13,000 ounces of gold. Production for the quarter resulted from feeding 369,175
tonnes of ore to the plant at an average grade of 1.18 g/t au at a 92.6% recovery. 123,985 tonnes of ore
at an average grade of 2.06 g/t were mined during the quarter, with the balance of plant feed coming from
ore inventories."
"Variations in production and costs between quarters will occur as the mine plan is made up of different pits at different grades and stages of stripping. Production for Q2 10/11 is expected to be also in the range of 12,000 to 13,000 and it will be in the second half of the year when pits with higher head grades (Zapucay and Veta Sur) will produce above the average to reach the estimated 55,000 ounces of gold for the year."