Cup and handle and technical trading aside, I see problems with both revenue and operation costs attributed to production. Profit from operations were anemic and, correct me if I'm wrong, the average per pound LME price for zinc was roughly $.50 plus. It appears that management is discounting their sale price to get product out the door. Zinc has broken $.80 per pound. If this is demand driven Farallon should not be currently discounting the sale of their output.

There are big issues in terms of operational/mining costs. Way too high, especially for a plant that has been built with new machinery. It will be interesting to see what happens when zinc demand wanes and, as is happening now, stocks pile up.

I am hoping we won't see as many extraneous one time costs to help clear up what expense structure truely remains going forward. I am anticipating to hear a confident bottom line projection of a first quarter profit. They must do this as the resource market is far from out of the woods.

Whereas technically the price of Farallon appears bullish, if they do not clean up current realities, the trend could very well collapse.