Crocodile Gold improves performance

Crocodile Gold came out with an operational update before it's annual report.It shows that annual production increased 58% over last year-from about 150,000 ounces to 210,000 ounces.It predicts a cash  balance of $27 million and working capital of $15 million.The surprise here is that the Stawell mine got a 21% increase in production over Q3 and a slight increase in grade as well.They are mixing surface oxides with ore from underground mining.They may be able to extend the life of Stawell with their underground mining.If they are to meet their 2014 guidance then they must extend Stawell production to at least Q2.The Fosterville mine still has good production and the grade remains high but may fall by 2015.The Cosmo mine has shown increases in production and increases in grade but future increases in production are likely to be minimal in 2014.
New ore
Crocodile needs to get a permit to mine their new Big Hill project by the start of the second quarter.Production will not likely be significant by Q4 with Stawell production dropping off.Crocodile will probably be announcing a new investment and likely in an Australian mine early in 2014.They have a positive cash balance and apparently have cleared a previous debt with Credit Suisse which was used to buy their two new mines.They will still have time to develop any new ore body purchased in the first half of 2014 and a positive cash balance to carry it out. Will it be Pitchblack or does Crocodile have another property in mind?No one knows but no one expects 2014 production to come in below 210,000 ounces either.That is because Crocodile has gotten good production out of all three of their mines in 2013.