Also we have placed the 2012 second quarter MD&A and financials on our website in the investor stage under financial reporting. I would like to now turn the call over to Neil McMillan, President and CEO for comments and then we will go to questions.Neil McMillan Thanks very much, Marc and thanks everybody for taking the time to sit in on the call. I am looking forward to giving you an update on the second quarter, a bit of a forward looking outlook for the balance of the year and then answering questions. If you have had a chance to go through the numbers for the second quarter, you would note that our production of 12,166 ounces of gold, we actually produced a bit more than that, but those ounces sold is up substantially over the first quarter. Slightly below our internal forecast, most of that grade related, some tonnage, but it did generate a net profit of $700,000 in the company. Our cash costs while they did decrease are still higher than we are forecasting going forward and they are a result of a decreased grade in the second quarter production. I can tell you that over the balance of the year, we expect our cash operating cost to come down into the mid-900s, so that would imply that we expect to be under 900 for the second half of the year. We also stepped out and staked an additional 30,000 acres adjacent to our Amisk Gold Project during the quarter. That’s a reflection of our confidence in the geological potential of that project and questions about that can be directed to Brian Skanderbeg, our VP of Exploration after I have done the call. We continue to run three rigs at the Madsen Project. Two of them are operating underground from the 16th level and there are 24 levels in the mine. Those two rigs are pursuing down plunge extensions of the high grade number 8 zone and we have one surface rig that is doing a lone test folds to generate information about the down plunge continuity of the original ore body, the Austin and McVeigh. We only budgeted three holes there and that surface rig will be done here in the next week. We also plan to provide a press release update on our year-to-date progress at Madsen. We will do that in the third quarter as well.
Revenue was up in the quarter, obviously the higher gold price helped quite a bit. Again, cash costs have been frustratingly high. It's predominantly a function, probably 50/50 of the lower grade and then higher labor and consumable rates that we are all facing in the industry but again, notwithstanding, that 12,000 ounce number, we expect to see increase. We were profitable and did generate reasonable cash flow during the quarter.Gold production, as I said, was just over 12,000. We sold 12,300 ounces. Net profit was modest but again it gives you an idea about what we can accomplish going forward as production increases. On page six, if you are following on our chart, we have been getting questions about our balance sheet. At the end of the quarter, we were negative $1.6 million in cash. We did have a line of credit available. Short term debt increased substantially and long term debt went down substantially during the quarter and the reason for that is our $10 million, or $9.8 million debenture which matures in May of 2013 became a current liability because it is under one year to maturity. So it moved up the long term debt in to short term debt. As well, in the short term debt, we have about $9 million worth of just under that equipment lease or equipment financing at the Seabee operation, where we used to lease that equipment. We have converted that to a fixed term debt and the fact that it's got gold provisions on it, means that we have to include it in short term liabilities as well, although we don’t have any expectation that that debt would be called. Read the rest of this transcript for free on seekingalpha.com