Elgin Mining Inc ELGMF

Quarterly Results Out

[profess]

Pretty much more of the same old BS being flung at investors as in the past from GOZ.

Turns out the promises of per-oz cost-reductions and increasing grades that has been going on for years now ends up being just a bunch of 'feel-good' rhetoric for investors.

So far zero credibility being shown by the Elgin team, and I'm not planning to stick around to be dragged through the mud again with these guys.

[maurizion]

This company had so much promise a few years ago. I can't believe what the management have done to it. What I do know is they have been paid handsomely while we are suffering.  

[boreps]

No reason for long faces. For the 4 month reported, operating margin was 24%. This is healthy, besides larger tonnage comes from underground. The best margin reported for the year was approaching 27%. I compared numbers with Claude (CGR) and they had truely disustrous numbers ( margin 4.5%+20 mln debt) and nothing in the future. Yet this company priced 25% higher. Must be older company

[HonestAbe]

Well the bright side is that the company is not in any financial danger.  But thus far everything is pointing towards mediocrity and trending in the wrong direction.  Sure, 24% operating margin is a fact, but you neglect to point out that the operating margin in a comparable period previously exceeded 40% so that is quite a drop off.  When you have a post-merger company in which

[boreps]

I don't think they left the mine in shumbles. The resource estimation of March 2012 showed 8 years LOM. The 2011 was the best year in regard of production and gold price. They achieved 42% margin. Elgin had plenty of data and time to study the company and decided that optimization is needed as the underground mining required.  Maybe relationship with contractors started deteriorate

[boreps]

Abe, if you could suggest better player in this industry I'm all ears.

[boreps]

BTW Patrick Downey bought over 150 thou. shares.

[HonestAbe]

Do not misunderstand me ... Elgin at these prices is undervalued, but investors will not bid up the shares if their operating performance remains similar or worse as to what they reported in Q1, Q2.  But the issue here is that the entire mining sector since early spring tumbled down a cliff and investment selection is all relative.  Since the time of merger news early Feb 2012 lots of

[maurizion]

Take a look at SAM. It is cheap and could easily double this year. They just bought out their $700/oz hedge and are planning a hefty dividend. They were making a profit with the hedge.