On April 18, 2013, based upon the operating staff’s assessment that the
mill had demonstrated its ability to operate continually at rated
capacity while maintaining forecast recoveries, the Company announced
that the Rosario Mine had achieved commercial production. Such
consistent mill performance, however, does not in and of itself satisfy
the definition of “commercial production” for accounting purposes. As
such, the Company has not reported the Rosario Mine’s results of
operations in its consolidated statement of loss for the second quarter
but instead capitalized the operating costs less proceeds from the sale
of concentrates as mine development costs.
And this is what it means:
If any retail shareholder ever believes a single word that comes out of this company again, or decides to trust blindly the word of the bunch of blatant bullshitters that passes for its management team without doing any DD, that shareholder deserves what’s coming to them, good and hard.
UPDATE post-bell: Unbeknown to lil me, Vancouver Venture picked up on the exact same passage of the same NR this morning. His take on it is here