I am delighted with the news that IPT is approaching that symbolic 1 million ounce silver production level for a year. I am also very happy that the working capital position is growing, even without doing any form of financing for the last 2 years, and while investing millions in capital development work. That is exceptional performance and I can think of no other junior that has accomplished that (perhaps AGI would compare well on that basis, but they did a huge financing a couple years ago that paid for most of their development). I am also happy that only a small chunk of the zinc cons that had been stockpiled have since been sold and accounted for in the revenues so far. We can look forward to another boost to earnings in Q3 from that.

I am not happy that even with record operating profits the net earnings actually decreased. I will have to sort through the financials to find where the money went, but I suspect a big chunk was lost to foreign exchange differentials since the CDN dollar was very strong last quarter.

One other point worth highlighting is that the total tonnage processed increased by 15% even with the mill shut down for maintenance for a few days, and even with the closure due to swine flu for a few days. There is plenty of upside to potential to improve on those numbers, and the mill is still a long way from operating at full capacity. With higher base metals prices perhaps they will return to mining the Lipton Vein at Gallega, where its a lower grade silver resource but enriched with lead and zinc, and very low cost to mine.

cheers!

mike