RE: RE: 2012 Annual Financials Cash costs in Q4 were still over $1,000/oz and it's a lot worse if you look at the full year. Funny, I looked back at the presentation they put out one year ago. They were projecting cash costs at under $800 for the whole year. Given how badly they missed on their production targets, it's hardly surprising. Consider...
In June 2012, with the year nearly half complete and the major upgrades in the rear view mirror, they issued this statement:
Randy Reichert, Chief Operating Officer commented, "Our team at Jerritt Canyon has worked incredibly hard to bring the operation to commercial levels. We are now seeing the results of this effort and the operation is in excellent shape to meet our gold production target for 2012 of between 140,000 and 150,000 ounces."
In August 9th, they said:
"Our team at Jerritt Canyon did an excellent job removing the bucket elevator and installing the new conveyors in such a short period of time. This has allowed us to remain on track to meet planned production targets for 2012."
Then on August 10, the very next day, they move the goalposts. The 2012 production target of 140-150k ozs magically becomes 150k steady-state production.
"In achieving the targeted production rate of 150,000 ounces of gold under steady state operations, the Company is focusing on..."
Of course, they had no other choice since Q1/Q2 production was only 37k oz. Oh well, just a little delay. I'm sure they'll hit their 150k annualized rate going forward.
On October 16, they announce production of 35,523 (142k annual rate) and issue this forward looking statement: "Looking ahead, we will continue to ramp up to run rate production of 16,000 ounces per month by the end of December 2012."
On March 20, they announce "steady-state production" of 31,754 (127k annual rate). Total production for the year: 104k oz. Cost of sales: $1,300 per oz. Just a hare above the $800 projected cost.
Fool me once, shame on you. Fool me quarter after quarter, year after year, shame on me.