Just how crap is Gammon Gold (GAM.to) (GRS) anyway?

GAM two year chart: the bullshitters in suits known as "Canadian brokerages"
suckered you all in 3q09 again. Don't fall for their uncool jive talkin', maaaan...

To celebrate the publication of yet another round of pisspoor production numbers at Gammon Gold (GAM.to) (GRS) your author decided to check under the hood a bit and look at just how much of a serial disappointment this gold stock dog really is. There's going to be more on GAM in IKN50 next weekend including an earnings estimate, but here's a couple of simple charts generated by the XLS that give an idea of the mediocrity we're talking about.

This is the quarterly gold production chart for GAM:

This is the quarterly silver production chart for GAM:

By the way, these production numbers were supposed to be increasing rapidly under the "turnaround strategy" implemented in late 2007........errrr, dudes, that strategy hasn't been working, has it? And those who check the talk to the walk know how bad things really are. This is taken from the YE 2008 MD&A published in March 2009

The Company is providing the following guidance for fiscal 2009 - Gold production of 185,000 – 205,000 ounces - Silver production of 8,170,000 – 8,945,000 ounces

The reality was very different, as in 2009 GAM managed to produce just 136,309 oz Au and 5,165,514 oz Ag.....class that one as a world class miss.

As for this year, GAM is trying to bullshit the market again with stupidly optimistic production guidances. In its 2009 YE report it called for 150,000 to 180,000 oz Au and 6.1m to 6.85m oz Ag. This means it's going to have to seriously accelerate from its current quarter of 28,431 oz Au and 1.28m oz Ag.....or more likely it'll just keep on disappointing.

IKN sez: very big avoid GAM thanking you.