start here

start here

The Daily IKN email digest, get all daily posts sent to you next day (& no ads)

2/15/17

Marrone mailbag time: "Yamana El Peñon Mine is Dying"

Here's a fine mail, received this morning from A. Person with the title line as seen above.

In 2010, Mr. Moron-e stated that the exploration program at El Peñon mine in Chile would lead to "...achieving a sustainable production level of 450,000 to 500,000 GEO with the potential for additional increases."
 
In the recent exploration update released last night, we find that "The Company believes that 2017 will be a year of transition at El Peñón with the available wide and high grade veins being replaced by numerous high grade yet narrower vein systems. During this transition, production will be reduced from recent levels, although over a longer term at a more sustainable level."

The use of the word "sustainable" in both of these cases is driving me insane. I feel like I am being remotely programmed. 

"El Peñon is dead. Long live El Peñon"

Indeed it's true and if we check on production results at El Peñon since 2010...



...we see two things:

1) Its production is tailing off badly, so much for "sustainable".
2) Even in the apparent good years, up to end 2014 AUY juiced its top line results by pretending a gold/silver ratio of 50/1 (therefore I've used their very own BS number to convert the 2015 and 2016 results).