Mr. Jean Labrecque reports
GLEN EAGLE CONTINUES TO EXPORT GOLD AT RECORD PACE THROUGH ITS SUBSIDIARY COBRA ORO
Glen Eagle Resources Inc.'s wholly owned Honduran subsidiary, Cobra Oro, is continuing to export gold at record pace.
In terms of production throughput and cash flow, Cobra Oro has realized its best third quarter ever, allowing the company to improve its balance sheet by paying back all short term debt ($280,000) accumulated from plant improvement and purchases of the chemical supplies to support its operations for an entire year to come.
The positive cash flow was achieved while processing an average of 2.3 grams of low-grade ore and bringing considerable improvement to the plant.
With the land value having increased threefold over the last four years based on current prices for adjacent properties and with almost no long-term debt in its books, Cobra Oro has an enviable balance sheet by mining standards.
This trend should continue to grow even stronger as the company expects to process better grade ore by early November, which should have a significant impact on cash flow as fixed costs are well under control and Cobra's operations are being run close to maximum efficiency.
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