I'm betting the new CFO is scouring the hills of Oaxaca searching for missing bags of concentrate.....and more surface chip samples. Imagine basing an investment on surface chip samples. Wrongadeus did......too funny
In 2011, SORO produced 66k ounces AuEq selling at an average price of $1596
In 2012, SORO produced 90k ounces AuEq.....a 40% increase year over year..selling at an average price of $1690 (9 month average Q1-Q3)....YET,,,,,as we just learned in a midnight filing, SORO's net income will be lower in 2012 compared to 2011.
So let this sink in. SORO will net less income in 2012 despite producing 40% more AuEq and selling it for $100 more/ ounce than in 2011.
Folks....I'm more than a little scared to think what 2013 net income will be if targeted ounces remain flat or negative year over year while PM prices continue this descent sub $1600, as tax rates continue to rise, as costs continue to rise.
If and when the Reids divulge the final 2012 numbers, listen carefully to this CC. I guarantee they will be dropping hints regarding both the sustainability of the dividend and future dilution of shares. As we know, they NEVER are forthcoming with any specifics, but I'm telling you now, especially with the legal watch dogs sniffing around their every filing and spoken word, the Reids have a fiduciary responsibility to notify shareholders of impending changes. It is coming.....common sense and a calculator tells you its coming.
Of course, those who know how the fraudulent minds of the Reids work, we must assume that tax hikes are not the sole reason for a year over year income decline. Weak grade, skyrocketing costs, mismanagement, theft..... all affect the bottom line as well....but of course we know the Reids will never provide an honest explanation.