I think our Q2 financials should be out Friday or Monday at the latest. Last quarter we had sales of $5,966,092 and development costs of $4,383,608, so our operating profit was just under $1.6 million. In Q1 we were still shipping our stockpiled pyrite concentrate which I estimate added $500,000 to our sales that we will not have the benefit of in Q2. Everything being equal in Q2 would then put our sales at $5.466 million. All is not equal though. In Q1, the average gold price was $1384, while in Q2 it was $1504, an increase of 8.66%. In Q1, the average silver price was $31.66, while in Q2 it was $38.17, an increase of 20.56%. In Q1, the mined gold grade was 48% higher than the milled grade, and the mined silver grade was 34% higher than the milled grade. It is reasonable to assume that what was mined in Q1 will be milled in Q2. In Q1, the value of gold and silver produced was about equal at $2.6 million each and the value of lead and zinc combined roughly made up the other $266,000. Lead and zinc prices went up about 10% in Q2.
My estimated Q2 revenue is thus:
Gold = $2,600,000 x 1.0866 x 1.48 = $4,181,236
Silver = $2,600,000 x 1.2056 x 1.34 = $4,200,310
Lead and Zinc = $266,000 x 1.10 = $292,600
Total revenue = $8,674,146
Bottom line is it looks to me like we could have a mine operating profit of $4 million in Q2. This could vary substantially depending on mill grades. Please note that this is not corporate profit as exploration and other costs will need to be subtracted from the operating profit. BTW, I was only 3% off earlier this year when I made a revenue prediction of $5.8 million for Q1.