Q3 LossHere is why I think there will be a loss in Q3. It has to do with accounting. When San Rafael was in development, all development costs were capitalized, so they were not counted against profit. With San Rafael in production, many of those costs will change from capital costs to expenses and will count against profit. The company spent nearly $8M on San Rafael development in Q2. I do not know how much of that will become expense in Q3, but if the entire amount did, that would cost $.10 per share in earnings.
Production during the transition to the new mine is another potential issue.
My prediction for Q3 earnings is a loss somewhere somewhere in the range of -$.10 to -$.02 per share. That is a pretty big range, but there are a lot of unknowns at this point.