They're making money. But what I care about is the longer term potential...like improvements to Gibralter underway to very dramatically increase their annual production. Then you have the strong potential for still higher copper prices as the economy slowly continues its recovery. Finally, there's the feasible wild card Prosperity... which we all know will make the pps soar before Prosperity even earns a dime.
Sooo....if the share price drops a bit 'cause of arbitrary expectations of eps (yes, .09 was a ridiculously unrealistic figure to ask for!), this will be your opportunity to buy more for the longer term. I own plenty of this in a couple Roth IRA's.....and I predict in 2 - 3 yrs., I will be sitting pretty. Good fortune to all who are wise enough to own this stock and to sit on it!
It's not a miss. It's a result driven by 3 factors, Tons Milled, Stripping Ratio, and Ore Grade.
1) Tons Milled was down, so less ore than last quarter to be turned into copper.
Calculation: 3.2 tons milled / 3.6 tons milled = .88
Result: 12% less material to work with than Q1 2010
2) Stripping Ratio Up, so more waste rock to be removed to get to the ore (more gas and labor to dump that waste)
Calculation 2.5 / 2.2 = 1.13
Result: 13% more waste rock than Q1 2010
3) Ore Grade .337% vs .355%, doesn't seem like much of a difference, but it meant an additional
Calculation: 0.337% Ore Grade / 0.355% Ore Grade
Result: 6% less Copper per Ton of Milled Rock.
So yeah, they produced less Copper and made less money, But Ore Grade and Stripping Ratios aren't anything we or management can control. If you're going to mine an ore-body they with vary over time. The muffin ain't all top. There's always some stump you have to eat. Tons milled is the only thing they could be expected to have control over. Stuff happens. Adjust course and move along. Hopefully they'll give guidance on expected Ore Grades and Strip Ratios going into the future. (Remember that Q1 2010's strip ratio may have been artificially depressed by stockpiling of Ore from earlier years)
I am not particularly interested in the short-term, either. However, I am interested in management's being candid with investors. I seem to recall that last quarter's results were indicated by management to be skewed on a claim that ore had been left on the docks, or something to that effect.
I have been long and strong on TGB. However, my confidence in management is beginning to wane. An alleged 4-day interruption in mining operations hardly seems a valid excuse for a 92% drop in profits. I am getting the idea that management may not be telling us what we should be told, but rather is putting forth statements which may be misleading, if not outright deceptive. If such is the case, this not is not for the company, and will be even less good for those responsible.
I hope that I am wrong. However, the results posted for this past quarter just seem to be in contradiction to management's previous claims.
If it should happen to hit $4.25 or $4.00 - load up.
Even 4.50 is not a bad entry point here.
Either Russ & co will get their act together, or they will be bought out.
Too much value in the ground here for bigger players to ignore.
Existing management seems to make getting it out of the ground much more difficult than it should be.....
This is not a manufacturing company, the assets in the ground are real, and they will only appreciate over the long haul.
I’m with you and that I don’t care about the short term either.In my opinion, there will be a recovery in copper towards the end of this year. China will continue to need copper for manufacturing, automobiles, telecom, construction and all kinds of consumer goods. The tightening of finances in Europe, the housing doom and gloom in the U.S. and monetary tightening in China caused the prices of copper to fall recently. Yet, copper prices are not tied as closely to the recovery of the problems in the Eurozone and the recovery of the housing market in the United States. Copper demand will continue to come from Asia and emerging economies. It seems reasonable to rationalize that copper purchases will pick up and Gibralter is on it’s way to increase it’s annual production… significantly.