The tone was set from the first second your humble scribe received the 2q12 production numbers from McEwen Mining (MUX) (MUX.to) yesterday afternoon, because when a guy unafraid of hyperbole such as Robbie Mac uses a plain vanilla "good" to describe things, a shudder immediately runs down thy spine. So here's how San José's 2q12 production stacks up against previous quarters for gold and silver:
And that's a 2q12 described as "good", so we have therefore to assume that all the other quarters filed by this consistently underperforming mine that's only ever hinted on living up to its expectations once, back in 4q10, are "good" as well. Yeah Robbie, good good good, so good you had to merge it into U.S. Gold...
On top of that you have rapidly rising costs in Argentina and you also have the small factor of 44% of the metal not leaving during the period because CFK&Co were farting about with the revenue repatriation rules, part of the nation govt's sudden mania to hoard dollars (which backfired in this case and the rules were eventually relaxed).
I digress. We're not doing all the numbers here in this post but let's summarize with the necessary instructions for MUX longs come 2q12 financials reporting time.
1) Stand legs slightly apart.
2) Bend down, touch floor.
3) Maintaining position, grab ankles with hands.
4) Wait patiently.