RE: RE: RE: This stock is really dragging! The Company produced a record 27,084 ounces of gold during the third quarter of 2012
The company milled a record 191,105 tons during the quarter, averaging more than 2,000 tons per day. During this period, the company mined 143,949 tons, resulting in approximately 7,900 tons remaining in surface stockpiles as at September 30. The Company plans to mill the remainder of this stockpile during the fourth quarter.
Calculated production costs were $785 per ounce sold during the third quarter, compared with cash costs of $769 in Q3 2011. The total cost per ton of ore in the third quarter of 2012 decreased 15% to approximately $101 compared to $119 in the same period of 2011. Mining cost per ton of ore was $86 in the third quarter of 2012 compared to $101 for the three-month period ended September 30, 2011. Processing costs per ton of ore was $14 in the third quarter of 2012 compared to $17 in the same period of 2011.
The cost per ton of ore for mining and processing are expected to continue to decrease in subsequent quarters. Decreases in mining and processing cost per ton of ore will be realized from the mining of newer, near surface deposits in the Hinge, L10 and 007 zones as well as through increased average throughput rates.
The Company is well positioned going into the fourth quarter of 2012, with 7,900 tons of ore stockpiled, representing approximately 1,700 ounces of gold. The Company plans to mill the remainder of this stockpile during the fourth quarter.
Record gold production has been accompanied by a steady quarter-over-quarter reduction in total cash operating costs per ounce of gold sold from $840 per ounce in the first quarter to $785 per ounce in the third quarter. Higher mining, crushing, and milling rates combined with operational efficiencies and the removal of operational bottlenecks, has contributed to a significant reduction in the Company's cash costs per ounce.
In the fourth quarter and through 2013, the Company will be focusing production on its higher margin ounces near surface while developing the Shoreline Basalt deposits and increasing the capacity of the Rice Lake shaft at depth.
The Company anticipates this strategy will result in significantly improved total cash operating costs and is currently maintaining its expectation of achieving the lower end of its 2012 production guidance.
.........Tell me where they are missing their guidance.
Hang tight folks, I believe year end will be pleasant. JMO DYODD