Expansion coming in $100M below budget and ops tracking ahead of plan...below budget and ahead of plan while the stock sits at 7x 2014 EPS with 40% expected growth. This should command a $30 price tag and now with ops back inline versus more weather, delay, cost issues something tells me the teenage years are close to over.
cost estimate remains the same but purchase commitments are lagging: "The capital cost estimate for the expansion project remains at $1.24 billion. To date, we have purchased or have fixed contracts in place for approximately $680.9 million, or 55% of the total capital budget and these purchases have come in below the original estimate. As a result, the difference has been allocated to contingency which has increased to $97 million, from $65 million, representing 17% of the remaining capital to be committed of $562.1 million. Management believes that the expansion can be funded with current cash balances, an undrawn revolving line of credit for $120 million, capital lease financing, and operating cash flow"
Looks to me like they are still struggling to produce gold at the projected rate. Based on the fact that they have produced 27K onces so far this quarter, which means 13K ounces/month pace, they will only produce about 40K ounces this quarter. This is lower than last quarter, if my memory is correct.
Projected gold production for this quarter (assuming same rate as for the first two months, which is conservative as they are currently adding carbon clumns) would be 41,200 oz versus 41,745 for the 4th quarter of last year. Silver would be 238,000 oz this quarter versus 215,258 for the 4th quarter. Not much difference, but production should continue to increase as additional processing capacity is brought online.