Take physic, pomp

Trading Post (local miners’ results edition)

Minera Andes (MAI.to) returned its 3q08 results Friday and they sucked. EPS of -2c was a mile away from my expectation. Sure they added to capex, but the cash cost added $1.4m to the numbers I was playing with (using the 2q08 costs).

Fortuna Silver (FVI.v) put in a strong quarter. A lot of people have noted cash at bank lower, but check the sheets and you’ll see receivables way up. Cash cost at $44/mt is a great way to move into FY09 when the Zn/Pb hedge runs out. Production is upping and once the drill program at San José is completed next month costs will come tumbling down. Very strong balance sheet and still my top value pick.

Vena Resources (VEM.to) also looks good. This was the last “expensive quarter” as the company was still drilling at full speed when the qtr started. I spoke with the CEO over the weekend and Vegarra said that cash burn drops substanially going forward. That’s good, and that’s even with the company still moving forward on several fronts.

Thanks to A.N Other giving me a headsup today, I’ve been looking at Sierra Minerals (SIM.to) and its quarterly results. Quite simply excellent numbers. Have a look for yourself at the PR and then get the full report and more background from this link. A quarterly EPS of 1c for a 8c company, good cash position, SG&A going down while production goes up….very interesting stuff.

Malaga (MLG.to) also put in a good quarter. I fully expect this company to make a profit in 4q08, and then in 2009 maintain revenues while costs drop significantly. Along with SIM.to, MLG.to is an example of a pennyshooter that’s worth looking at. Plenty worse out there than these two.

DYODD dude, and be clear that although I liked them before they arrived on the scene, both VEM.to and FVI.v are both site sponsors.

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