RE:RE:2nd Quarter Results?Right you are, Leadhead.
Reuters mistakenly quoted the annual production forecast as the forecast for Q2. Subsequently corrected in a more recent release.
Annual production forecast 40K - 50K tonnes, meaning annual revenue for 2013 at around $90M to $100M (assuming nothing goes wrong).
Disagree with you about Sprott (and also Enirgi) loans. Payments made will not affect earnings, just reduce debt. Market will (or should) care more about earnings. No payments on Sportt required until middle of next year, but if they can pay it down sooner it will reduce interest. At 12%, interest is about $200,000 per month, compounded monthly. Not big potatoes in the overall scheme of things - I say hold on to the cash just in case of production issues or lead price plumments. Good to have some insurance, even at $200,000 /month.
BTW, Sprott is $20M, and Enirgi loan is $5M, some of which went to paying for refundable bond to the government, which doesn't count as expense.
Wasn't the targeted production going to be 80,000 to 100,000 tonnes per year immediately prior to the 2010/2011 shutdown? If so, that would put them back to being a $200M revenue company.
The only thing holding back the stock price is someone who has been dumping large volumes. Probably one of the few institutional investors left. It's not Ingalls, although they did sell about 800,000 recently, according to insider trading reports. Once this seller/sellers have dried up, there will be support at 15 to 20 cents.
Once IVW and Enirgi show that they can continue to run this operation without incident for a quarter or two, and the company is returning to profitabiltiy the stock price will pick up back to 20 to 30 cents, probably in Q4 this year.
Markets always try to value companies on anticipated value, not present value. Understandbly anyone who watches this stock is probably still a little jittery after the events going back to 2007.
At 12 cents this stock is a bargain. Great chance to double your money in a quarter or two,
- Serge