RE:RE:RE:Disappointed InvestorsAlfTanner,
Regarding CMCL profit, the reported profit was 24 cents per share, not 35 cents. And if you count only the $1.956 million USD attributable to CMCL shareholders, it works out to 18.6 cents per share. So annualized I would estimate a profit of 80 cents to a dollar, which would increase CMCL's PE to around 10 which for a Zim stock is fully valued IMHO.
Furthermore, it looks like the problems at Blanket are going to get worse before they get better.
All in costs are $1256 USD per ounce of gold, higher even than at Orvana's El Valle Mine where the All In cost has come down from $1682 to $1181 USD in the last year. The specific problems are a broken oxygen system which will cost $2 million USD to replace. In the meantime they are using liquid oxygen in the CIL which is expensive. Ore grades are going down with 3.01 g/t being reported for July, and mining ore dilution continues to be a problem.
But the real shocker is an $8 million dollar drop in quarter on quarter cash! Making a $2 million USD profit with cash declining $8 million--Sure you are!
Meanwhile, at Americas Silver the cash position has increased from $3.3 million USD at the end of Q1 to $7.8 million USD, which is a nice increase of $4.5 million USD. So I view Americas Silver as the safer stock with better growth prospects.