Based on the poll results, it is clear that a significant percentage of the blog viewers want immediate change to top level management.
Can you blame them? We've gone from $1.89 in share price in 2006 to a low $.16 today. The company can spin it all they want, with all the excuses in the world, but the fact of the matter is that a lot of long-term Century Mining supporters/shareholders of the company are down materially on this investment. There needs to be accountability. There needs to be compassion. There needs to be leadership.
A true leader would do the things that are in the best interests of shareholders right now.
16 comments:
What does WEGA want? They're running the sandbox and kicking sand in PK's face. Scion can't be happy that WEGA can trade while they watch. They both receive insider information.
Natik,
I think PK needs to talk to Wega again, either over the phone / conference call or in person to see what their latest demands are. If they want PK to resign then that will be a personal decision for PK. However, if the demands go further (i.e. if they want our stake in Shahuindo in compensation for the lower share price) then PK needs to draw the line, and say screw off Wega!
The bottom line is that when Wega sells their shares at $.16, it represents an 82% realized loss for them. I agree with Carib, Wega shareholders should demand an explanation from their management (for their actions).
It's unfortunate that the BCSC and the TSX-V allows this to happen. They really need to put some sorta rule in place to protect small companies (and its retail shareholders) from being hijacked from large shareholders.
Anyway, I guess there is nothing that can be done about it if Wega continues with their suicidal mission.
Management just has to plug away and move the business forward in an effort to attract new buyers over time. San Juan 43-101 was just the first of many expected updates - the ounces in ground were low, but g/t grade was 45% greater, and cash cost per oz was excellent. Here are some others:
*closing of the PP
*progress update on Lamaque (this is our bread and butter) - this is much more important than Wega, SJ, SUE and everything else
*renegotiation/deferral of Rosario and Algamarca payments
*announce selected LT Debt partner
*possible merger, if not then possible spin-off of Peru
*announce fulfillment of outstanding BCSC requirements
*maybe they can work something out with SUE
If Wega wants to continue selling at an 82% loss then that's their choice. It will hold us back for a while, but not forever. No one shareholder (even a large shareholder) is bigger than the company.
If things fall into place with the other initiatives then we will gain enough strength one day and move forward again.
We can only control the things we can control.
Production05
Natik,
Whatever Wega wants we'll eventually find out (I hope). I am affraid whatever that is, will not be good for us small 'guys'.
What they are doing though I would call STOCK MANIPULATION (to achieve their objectives?). True, stock manipulators usually try to raise the value of their shares through illicit means. But, as far as I know, stock manupulation is against the law.
Why does not PK or someone alert the regulators about this?
I think Wega is being given too much blame (or credit) for the current share price. Wega didn't sell any shares until February after the share price had fallen to 34 cents from 55 cents and in the 2 week period when they didn't sell any shares, the share price didn't do anything.
Sure they managed to drop the price down to 16 cents today, but we wouldn't have done better than 20 cents if they weren't selling. They didn't sell a single share after today's NR, but no one bought any shares either. There were 867,000 shares traded today, but not one in the final 40 minutes of trading.
The share price is where it is because of a total and complete lack of confidence in management. Otherwise anyone that has the slightest clue about how to value a gold company and its assets would never pass up such a bargain.
The company has been mismanaged, but more importantly the expectations of its shareholders have been mismanaged. Today's 43-101 on San Juan was disappointing only because expectations were much higher in terms of the number of ounces we were expecting.
PK has made a lot of blunders, but purchasing San Juan wasn't one of them. It cost us $5.1 million and 1 million shares to acquire San Juan and the surrounding properties. Today's news release should have been a celebration of the coup that PK pulled off to acquire these properties, but instead it is a disappointment because of raised expectations.
In the next 5 years, SJ will generate $50 million in net income and $53 million in cash flow at $800 gold. That doesn't include significant exploration potential at San Juan itself and the surrounding properties.
Analysts base their valuations of gold companies on the NPV of their projects - usually with a 5% discount to arrive at a share price target. The Lamaque project has an NPV of $297 million at 5% and SJ $45 million at 5% for a total of $342 million at $800 gold. At $900 gold those numbers are substantially higher. Yet our market cap is less than $30 million.
If we had any analyst coverage (and we don't because PK chose not to do any financings with Canadian brokerages), we would have an analyst share price target of at least $2/share based on the above NPV numbers.
The reason then we are at 18 cents can only be blamed on no confidence in management and being shunned by Canadian brokerage firms, some of whom have long memories of past PK failures. I'm certain that a change at the top would result in an instant re-valuation of the company's shares.
The BoD has a fiduciary duty to the shareholders it serves to ask the CEO to step aside. It's time this company had a separate Board Chairman and CEO anyway. PK can stay on as Chairman if she wishes.
Things seem a little calmer today, maybe yesterday havoc selling put some pressure on management and BOD to talk to Wega. But the day isn’t over.
GLTA
It's 3:05 pm (trading time) and I don't see RBC/Wega flexing their muscles as yet (there was a bit of RBC sales and buys this morning, but I don't see any this afternoon thus far - the morning ones might have been activity from other people). The share price whacking is normally at peak levels by now. Hopefully this is some sort of good sign.
Today's trading summary has been posted and yes, Production I'd say the morning RBC trades were not from Wega as RBC were mostly buyers today. (Wouldn't it be great if they switched from sellers to buyers?)
The depth looks a lot more positive too as there is only 101,000 shares available below 27.5 cents.
It's also the first "up" day we've had in the past 10 days. Let's hope it's not a 1-day reversal but the first small step to regaining a little bit of respectability.
Lets not get ahead of ourselves, but hopefully Wega is done selling. Perhaps Peggy called and struck some sort of deal with them. Or perhaps she let them in on the pp. I imagine they were pretty pissed at not being in on the other cheap ones.
Anyways , like to see year
end write downs out of the way next week followed by pp closing and a positive Lamaque update. Hope, I say
hope , this is the start of a long lasting uptrend.
Roxy,
You are right: let's not get ahead of ourselves! But it looks like that your optimism (i.e. your courageous buying yesterday) will be rewarded. We have a long ways to go, but you already made a small gain. I hope for your sake (and also for the rest of us) that you will make it a ten bagger.
Good luck!
Quiet today so far. Almost
as if were waiting to see if Wega shows up. Like a roadside bomber in Bagdad.
Just checking to see if this works.
Cheers.
Roxy,
WEGA backed off for a reason. The BCSC either clamped down on them again with the MCTO or they received word that they'll get what they were seeking. There was only one thing they really wanted IMHO.
Natik
Natik, agreed. Clearly, something material is happening or has happened behind the scenes.
By the way, on the ASK:
Only 94,000 shares stand in the way to a $.28 share price.
"..or they received word that they'll get what they were seeking."
what? PK got the boot?
Sorry, that's what immediately ran through my head when I read that. Nah, couldn't be. On the other hand, they say you should trust your first instinct.
Can't wait for the NR.
Lets face it. If PK resigns
sp will double. With her
at the helm, even if they turn things around at Lamaque, as we're all hoping, the sp will still
lag. The women has too many
enemies, or people out to get her. She's lost all confidence from the investment community. Time she did the right thing and stepped down. Her deal
making abilities have definately come into question.
* $.24 share price finish today
* 77,000 shares on "ASK" in the way of $.28
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