ECU Silver (ECU.to) came out with its latest laff-a-minute production update this morning, so IKN got out the spreadsheet, plugged in the numbers and here's how things stand at the company regarding silver production sold to the market:
And here's the same chart for the gold:
You'll note that things aren't going so well recently. It gets worse when you do a bit of calculation and multiply the production by the average London Fix spot prices for each month.
You'll note that in the above, the third quarter period (the last one reported by ECU.to) saw $2m in gross revenues, which was pretty close to the $2.23m reported by ECU.to. The problem is that in 3q09, the company reported a $1.2m loss, because amongst other line item costs it had a G&A of over $1.8m and interest payments on loans of over $1.1m. Just those two things wipe out any chance of a profit and they're going to gouge the same in 4q09 and 1q10...and on and on..So this quarter we may see something like $3.5m in gross revenues. Not quite as bad, but the company won't have the same $2.2m foreign exchange gain this quarter, either, so the chances of this "mining company" (term used as loosely as possible) returning a net profit are still minimal. As for the 4th quarter, just wait til you see how much stock-based compensation this rip-off merchants assign themselves...that'll make you laugh.
We're now just counting off the days to the next dilutive financing (which won't be the last). Only total suckers, scam artists or people who have no idea about reading financials could ever be interested in this stock. Talking of which...........
