GREY:MLKKF - Post by User
Comment by
LongonZincon Jul 17, 2012 11:40am
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Post# 20121540
RE: RE: re-re-re
RE: RE: re-re-re Your question was not directed at me but I will try to answer. It is likely that earnings or cash flow generation will not meet expectations, the basis, two parts...first they reported extra wear and damage to the sag mill. This meant that when the sag mill was not operating they were spending money on repairing damage to the equipment, which likely means higher costs. In the end they missed their copper production target by about 12%. Secondly, with falling metal prices you must expect to see negative settlements in Q2 from Q1 sales, which will likely be booked as reduced revenue.
I don't expect to see the sp fall to 41 cents, I think we will see firming support around 60-cents and the announcement of a private placement. As far as the analysts go, they have mostly been dead wrong every step of the way, 6 months or a year late with their estimates.