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Q1 Financials Filed at Sedar
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Carib
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July 11, 2008 - 4:36 pm
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The Q1 Financials and Management's Discussion and Analysis have been filed at Sedar. I have posted the MD & A in the Information Links.

Highlights:

Operating profit of $710k
Net Loss of $1,810k
SJ produced 4,058 oz at a cash cost of $609 and a realized price of $711.
Net Loss includes $900k unrealized hedge loss.

The weakening of the US dollar has also caused a significant increase in the price of gold, which began in September 2007 and has caused the Company to record a non-cash provision of $4.2 million for unrealized losses on derivative contracts and its gold loan facility as of March 31, 2008.

That damn weak US dollar!! LOL!

The Company has been delivering its production into these contracts. At July 7, 2008 the
Company bought out
at a price of $923 per ounce its forward position of 11,100 ounces
of forward contracts with a delivery price of US$727 per ounce.


Now there's a bit of good news, but where did they get the money for that? Probably an agreement to pay $2,175,600 when they get the money. With gold moving up to $965 today, we can finally share in the upside.

Short-term bridge financing of $1 million has been obtained from MRI Trading, and another $5 million has been committed by MRI Trading, but other efforts to obtain additional short-term debt financing have not been successful, and in particular a lease financing commitment announced by the Company could not be completed because of concerns of the lessor that arose after credit approval but before documentation was completed. The Company also plans to issue new equity to supplement the debt financing and further leasing initiatives.

They finally came clean on the leasing line. What's this about issuing new equity? Is it a condition of the Fortis financing similar to the MRI bridge loan?

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