AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

Gonzo, Yankiwi, you were both right, the quarterly report was technically out before the end of the month.

http://www.marketwire.com/press-rele...el-1732154.htm

This link doesn't include the MD&A report, which will become available on SEDAR first I'd guess. As indicated in the latest background pdf posted in the GEL website, gold production has increased significantly. The icy winters in Otago naturally limited output over those three months, the bigger GRU#1 took a fair while to get going properly, and there must have been a lot of setup costs, which the report says were expensed in the quarter. So this is a different treatment from exploration of permits, where the cost is only expensed once the permit has been surrendered.

The gold production was worth over C$1mill, but cost about another $300,000 of cashflow on top of that, in the quarter. That's probably a really good result, all things considered. I'll wait for the MD&A data.

Revenues from mining operations increased significantly for the quarter to $1,079,000 (June quarter: $349,000) but was less than budgeted due to the extended commissioning of the GRU#1 plant and lower 'wash' grades for both sites. Mining and processing costs were higher during this settling down process which coincided with 2 of the 3 months of winter in the South Island. Gold production in September and October was considerably higher than the winter period and the December quarter is expected to increase further.

All commissioning costs have been written off as incurred. The increased production in September - November has resulted in a turnaround to monthly profits. Attention will now focus on costs reduction, which combined with a move to higher grade areas for both sites, should see a marked improvement in cash generation and profitability.

This quarterly report was preceded by another press release - there is another Private Placement happening at the moment. The buy-in is at C16c, with future 1 for 1 warrants at C25c. The aim is to raise C$3mill for Neavesville and WKP exploration work. This should all be completed by December 6th.

It's not immediately good news for current GEL shareholders, but I've followed the story of this company for a few years. Now a fairly useful employer in NZ, has trained and offered employment to geologists, ramping up gold production with its own assets, has big interests in two or three promising mine sites near Newmont's Waihi mine - we could all be looking at a great opportunity for capital gain from this point.