Monday, April 28, 2008

Quiet Before The Storm?

It's been pretty quiet here since the last news about the SJ 43-101 report. That should change this week as more news is expected.

We will certainly get the Q4 financials no later than tomorrow because that is the deadline for the 2007 annual financials. Those won't be pretty because we already know that they will include a writedown of $23 million for the Sigma Pit operations, but there will be Q4 hedge losses of somewhere around $4 million and operational losses for sure. All of this should be built into the share price because for the most part it is money already spent and reverses earlier operating profits.

Perhaps the company wants to get the annual financials out of the way before issuing any potentially good news. We should hear soon about the status of the PP, the MCTO, deferral of Peru payments and Lamaque operations.

Could there be management changes coming as well? Poll voting has slowed to a trickle, but the overwhelming consensus seems to be that PK should resign. Wega obviously wasn't selling to drive the price lower for a takeover bid, else they would have made a move by now. Perhaps they were insisting on other changes and therefore must have been promised something to suddenly stop selling after driving the price down to 16 cents.

As I write this the Century website is down. Are there changes to the website coming?

Whatever is happening behind the scenes, we need something to re-ignite investor interest in the company. Simply being woefully undervalued isn't enough it seems.

To encourage more discussion, I've lifted the restriction that comments can only be posted by those with a Google account and now anyone can post without having to log in. If the posting of comments privilege is abused, comments will be moderated before they appear on the blog.

4 comments:

rhump said...

Very quite! Not much to speak about since nothing has been released. Agreed Q4 writedowns are going to make the financials look pretty ugly. HOPEFULLY, that is built in to the SP. If not, good time to buy if you believe in turnarounds. Agree with Wega scenario; they want more participation and more of an insider role. My thinking is that PK et al. has promised them a seat on the BOD. Thus the stop in selling. Although we want PK to step down, my feeling is she will have the backing of Wega at the AGM, because of her latest moves in getting them on-side.
The one thing everyone must keep in mind, barring a AU spot price collapse, Lamaque will be cashflow positive by 3rd Q of 08. That is IF you believe what management has said. Confidence will only come back once management starts to meet its targets and projections. Not until! So,,,, may have time to wait. AND for gosh sakes,, PK stay out of the Options markets. You are terrible at it!
JMHO!

roxy14 said...

I imagine if their is anything positive to say
they'll lump it together
with finacials.

Anonymous said...

This Century Mining Blog is the best mining company specific one I have seen. Many thanks to Carib for setting it up.

Like most shareholders of Century, I am in shock at how low the share price has gone. Some of this can be attributed to the severe credit crises which has shut down the credit markets. In this environment I think the chances of a near term debt financing on reasonable terms are slim to none. So we can look forward to more dilution from further PP’s as we go forward. It is anyone’s guess as to what percentage of the company will now need to be given away in order to raise the needed capital to take us to the cash breakeven point. My guess would be another 20% dilution . The blame for us having such a precarious cash balance and being forced to dilute at these low share prices rests squarely on PK’s shoulders.

The silver lining if there is one is that the poor balance sheet and the resulting further dilutions and also the continued poor management by PK are already priced into the share price. The share price certainly doesn’t reflect the high probability of $2000 POG in the next 2-3 years. I don’t think even PK can screw things up so badly that the share price won’t be a 10 bagger from these levels at $1650 per oz gold price.

I like the fact that Wega is out there holding the fire to PK’s feet. Would welcome a buy out by them in the $1 range in 12 months time when their standstill agreement expires.

Anonymous said...

I still hope they will be able to debt finance Rosario and Shahuindo also if needed. They have already done an all to large placement at .23-25c, i would have preffered if they only took a small amount so they could manage some weeks or a few months and ony flow through shares ofcourse. Maybe someone wanted to participate in the company at a cheap price? I can't see it in another way, correct me if you think i'm wrong. They have 2 feasibilty studies and close to 1,5 M O in reserves to take into account when they do the debt financing, they must succeed if we want a reasonable SP. And i still hope the recent PP was made for/ and of the greedy people which wanted a cheap stake in the company.

/Juha