RE: RE: Warning: Production Down! Masspower2,
My profile also says member since 2006. Last time I posted was probably before stockhouse changed over, maybe my old posts got deleted. I post rarely if at all.
I was a large shareholder, I have scaled back a lot. My average cost is a lot lower than here so I am comfortable with my left over position.
What do I think about the company?
Tungsten is bullish, it held up well. NTC is increasing production, WOF starting Q1 next year. Both much larger producers. I own both.
Management has promised 500 tpd for 2-3 years. They are producing about half of that and decelerating.
Given that last quarter was further decline is problematic and the question is why?
At the moment current tailing facility allows for 350tpd to go above 500tpd they need a permit. Not an issue at the moment since they are far away from that production level.
After a year of digging they only increased reserves by 16%, pretty low IMO given past resouce upgrades.
I am sure they will find more, but it costs money to drill.
I am not big fan of the bridge financing at high interest rates that they did.
I like the company, here at 70% higher vs last month not so much given the red flags.
Production data is public information that they have to disclose on monthly basis.
2011 production: July 41 Aug 45 Sept 46
Oct 48 Nov 41 Dec 26 Tons (not STU)
2010 Q4 was 49 54 61 Tons respectively so going up.