Hi Aimone, I hope you are wrong about CR , I know it will be...

Hi Aimone, I hope you are wrong about CR , I know it will be tight but I think they will make there September quarterly costs that they have projected .

I think their biggerest risk is the weather , if it rains and they loose a lot of production days.

If they don't they may suprise the market and exceed the minimum prodction levels that they need to do for the quarter in addition to the 115,000 oz produced in July .

Ie 180,000 oz at $29 per oz = $5.2m
400,000 oz at $20 (AUD) per oz = $8m
Plus cash at bank $6m
Total estimated revenue $19.2m

Therefore they would need to produce for the months of August and September ( total needed 580,000 oz less 115,000 produced in July , leaves 465,000 oz ), ideally 465,000oz.

Therefore their challenge is to produce 380,000 to 465,000 as I have over allowed . I think some where in between these amounts is achieve able .

The test of future stability after acheiving the september requirements will be generating enough for the following quarters to achieve future ongoiing operating cost commitments , whilst slowly repaying the remaining debt , quarter by quarter reducing their operating costs and becoming cash flow positive.

Plus if the silver price moves up every dollar movement upwards on a production levels of 600,000 plus oz, means an extra $600k per quarter Therefore if and when the sliver price gets to $30 per oz we are looking at an extra $5m to$6m per quarter.

Good luck to all