It reported a drab net profit on a bad day to report drab numbers, that's what. Luckily, we took (85% in 6 months) profits on this stock a few days ago at U$16.89 (wish I could say the same for the other stocks left in the portfolio, though).
As it happens, here's what was sent to subscribers re. MFN in a longer Flash update that covered several stocks and the Peru political scene yesterday afternoon. We do get a few right amongst the normality of drab, underperforming picks, y'see.
Minefinders (MFN)
We recently sold around 10% higher than today's close and tonight MFN reported its quarter.
http://finance.yahoo.com/news/Minefinders-Announces-First-iw-1764354432.html?x=0&.v=1
It looks ok, but it's not great either. The breach between adjusted net profit ($19.0m) which backs out derivative losses and actual net profit of $2.3m was wide and won't make for great headlines. Perhaps a better gauge of the state of financial affairs is working capital at MFN, which rose $8.5m (a tad over 10c/share) from 4q10, which is kind of ho-hum. Our costs profile (mining costs + processing costs + G&A) rose from $16.8m in 4q10 to to $18.5m in 1q11, but the change in the gold/silver ratio to 44:1 makes it look like total cash costs dropped. In fact total gold Eq costs per ounce dropped $2 to $509/oz, but the costs creep is clear to see in absolute terms and in costs per tonne mined (or stacked) terms once numbers are crunched. Overall I'm glad I sold when I did.