Ann: Quarterly Activities and Cashflow Report , page-15

bentonkatsu, that's a bit presumptive.

One of the issues that holders cannot know about is profitability. Unless the company is profitable, the shares are worth nothing.

I am dismayed with the comments made by the company relating to gross margins. They talk about the gross margin of $1.4m on silver sold, but then display their incompetence by referring to the gross margin being adversely impacted by "the building of significant silver inventories on the leach pads".

Gross margin is the price received for product less the direct costs associated with the production of that product. The costs of building inventory on the leach pads have nothing to with the gross margin.

The cash flow statement cannot be used to assess profitability because of timing effects such as stock build, and the mix of fixed and variable costs.

I agree with SP, there are too many uncertainties at the moment to be able to tell whether the company's profitability at 1.2m oz/yr is sufficient to support even a 6c s/p.

I would also have liked to know the interest rate paid on the loan. The normal commercial interest rate on an unsecured loan to a mining company having production difficulties would be pretty high - 15% wouldn't be uncommercial.

So I am staying out too.