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Financials for Acadian Mining show gains in wake of rain-delayed activities.

In breaking resource company news, Nova Scotia-based Acadian Mining Corporation (TSX: T.ADA, Bullboard) released financial results for Q1, 2008, that revealed its first profitable quarter as a base metals producer. The news release states: “The Company realized net income of $912,173 on revenues of $9,832,088 from zinc and lead concentrate sales for the quarter.” 

On the downside, the company reported that operating profit did not meet expectations due to excessive rain and run-off at its mine, while zinc and lead production were also below target as a result of failing to meet the pit schedule. The release also indicated that Acadian is proposing to spin off a new company called Annapolis Gold Corporation, based on Acadian’s gold assets (details can be found in an April 18-dated new release.)  

The steady stair-step rise in the share price of Acadian was broken in July, 2007, when the stock was trading near $1.30 (all prices quoted in US dollars), up from 15 cents in late summer 2005. It currently sits at around 55 cents and is testing its 200-day moving average.


 

Reaction to the news on the Bullboard has been thin. anapolac and joejoe88 both posted the morning release as soon as it hit the wires, and then joejoe88 added the following thoughts:
 

That report we [sic] very encouraging as [sic] if we consider the problems assocaited [sic] with the weather in April then we can see that that report would have been fantastic for a new start up operation bringing in it's [sic] first quartely [sic] profit and with prices good we can only see good news in future.

Perfect timing if you conside [sic] the spinoff of the gold assets.

We have seen the botton [sic] here absolutly [sic]!

 

Yesterday (Thursday), inspiring words from adainvestor suggested that some are looking to the future:
 

Frustrating to see this thing trade down into what seems like anxiousness over q1.  It sure feels like the stock is getting walked down here.  But q1 is yesterday. And traders may focus on today. But real investing is about tomorrow.

Easy to think looking at the charts of small cap mining stocks the cycle was all over. But the message in the markets scream [sic] otherwise. Steel stocks soaring, shipping stocks soaring with the Baltic Freight Index, DJTA strong, big caps like bhp and tck back at highs, m&a talk... all during a global credit crunch and US housing recession. Clearly BRIC matters. 

Message seems to be it isn't all about America. And it isn't over. He's very right, we are still in the earlier innings. These markets make me care less about q1 and more about the next few years.

 

For more investor insight into Acadian Mining’s Q1 financials, join the group on the T.ADA Bullboard.

 
 
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