RE: RE: RE: 2011 Production Results If you are asking why is production greater than sales, it is due to build up of restricted inventory. A few years ago MMY agreed to forward sales for 5,714 ounces at $1,000 and 2,857 ounces at $1,250 per ounce and additonal ounces at a 5% discount to spot. Approximately 400 ounces per month of gold production is going to restricted inventory which at the end of March totalled 7,600 ounces at a cost of $2.44 million ($320 per ounce). Basically earnings are lower than they would be if the sale of these ounces was taking place within the quarter. They will be sold eventually.
At March end there was also about 2,300 ounces in inventory. That will likely have increased during the quarter to around 2,940. Not to beat a dead horse, but it is another reason why the PP is not necessary. The estimated June Inventory would realize about $14 million while it will likely be shown on the books at $3.8 million.