The institutions shook out the weak hands pretty effectively this past week or so!
They probably picked up another one + % of stock below 95 cents.
Base metal prices from lead to copper have been firm and bode well for silver equivalents at La Negra.
Silver is firmly over $30 inspite of the regular manipulation of Washington and Wall Street.
While 4th qtr will be weak because of Shafter startup cost with no sales to offset...the first qtr looks to be positive as the new mine shakes out and builds up to the 1500 level by July and then ramps to 2,500 heading into year end. The poor people that sold out at these levels are going to kick themselves come December!
La Negra drill results announced are only a warmup for the Valenciana drill results that should be announced just before earning are out in March.
Aurcana is a big piggy bank with exploding cash flows and self financed growth.
With endless money borrowing and printing the future is bright!
My first piggy bank is full of Aurcana stock. I got another piggy bank over the weekend and I'm now working on filling it as well. If you average the three samples of Aurifera 1 and assume $1,650 gold then the average of 12.4 oz. of gold per ton is $721.00. Zone Aurifera 2 samples averaged .0265 oz. of gold per ton or $156.00 per ton. A nice surprise and will go a long way in lowering the cost to mine silver if other significant areas are similar. I know we are right on Aurcana and I'm willing to wait patiently, adding at these ridiculous prices with a boat load of dry powder.
So rholl, you seem to be painting a picture that earnings for the first quarter, and for the year 2013....on the whole, will be significantly higher than expectations. You seem to have some keen insights in regards to Aurcana's potential; which I can see for myself in lesser terms. Anyway, keep posting info and good luck. Have a great weekend.
Assume rosey scenario:
Shafter is operating at assumed 40 % rate.(mining /milling at 600 tons per day )
By their assumptions thats 1.5 million ozs of silver produced per year ( 380,000 ozs per qtr)
If you assume a realized price for concentrate of $28 that would be 10.6 million for the qtr.( you also have to realize the lag between production and sales... the shafter production from Dec may make up for that difference ?? )
If you assume 6 million for labor, consumables, etc. for operating the mine/mill that would leave you with 4.6 million in free operating cash flow.
There is probably a steep learning curve they are going through to operate efficiency so these perameters may not be reached in the first qtr... but as the year goes by and they reach 1,500and then 2,500 rates of operation the cash flows explode. You do not add a lot more miners and infrastructure to reach these higher levels. As they move to 3.8 million and then 6+ million ozs rates of production and sale from the current qtrs 1.5 rate.... there is massive upside!