It looks good. All of the reserves and resources are still intact. The BCSC change was strictly cosmetic. They wanted the mine life to be strictly based on the 1.1M in reserves. Everyone knows that (if a company can get 1.1M in reserves up front) then over the next 8 years of already established mine life the chances are excellent to getting some (if not a lot) of the remaining 3.5M ounces into reserves also.
I hope the link works, otherwise people can check their news sources for it. Here it is to the NR:
http://www.newswire.ca/en/releases/archive/April2008/29/c2979.html
6 comments:
Well a least this is a first step. Would have liked to get the disasterous fincials out of the way already though. But at least for once something put out by this company hasn't been revised down. In fact, it actually has more credability now.
Spoke with Brent briefly today and he thinks the final paperwork for the pp is in... fingers crossed.
From the NR:
"These revisions were implemented based on NI 43-101 standards for disclosure. However, the Company will continue to use the previously announced economic model for internal planning purposes."
There you have it 1,321,287 ounces NI 43-101 reserves for Lamaque and San Juan (ok’d by BCSC) at $22.00 MC/Reserve. The next lower priced is at $71.95 MC/Reserves, that’s over 3 times the value.
I just wanted to point out that when leaving comments you can select the 3rd option(just above anonymous)and type in your name/nickname. You can enter anything you like for a name and by doing so the other readers at least have something to refer to you by.
Interesting and i like it, in this new(amended) feasibility study they will produce and earn even more under the first 8 years. But please look at this: "Going forward, Century expects capital expenditures for Lamaque of $25.5 million and $20.0 million in 2009 and 2010, respectively." -from a previous NR dated March 25.
Here you can clearly see that next year(-09) capital expenditures will be a total of ~$25M, instead of 16,084 which is the number on both(also this amended one) the feasibilty studies. I wonder about these capital expendure figures, is it about net cash for each and every year? Also i want to say once again, if they plan to do another PP this year, i think they do better in selling the whole company instead. This last PP was no good at all and they should have done a debt financed instead, no matter the interest rate, but another one this year i would hardly accept. If it comes to this, it can't be more then a maximum 5% dilution of the company, if more they must buy something that will contribute to the companys future earnings.
I wait for PK to inform us of a debt financing arranged for Rosario and also Shauihindo if needed, and i hope it is already been dealt with. They have 2 options, either defferal of the payments and a good plan to come up with the cash(from selling gold i guess)or a debt financing(with a high rate if needed).
Also about Shauindo, can't we get 15% or so from future earnings of the mine, it would be a great deal for all parts as i see it. We have the ground surrounding it and we may give it up for 15%?+that we keep Atimmsa for ourselves as a joker on ur hands, possibly option it out. This percentage will give us a net profit of about $5 000 000+ for each and every year(atleast 10 years as of now), and we will not have to finance the infrastructure with a single cent.
/ Juha
Juha, another PP won't accommodate Lamaque's CAPEX requirements in 2008, and subsequent years. They require a long term debt deal, and it would be very irresponsible if they were not working to secure a deal. They have a Leasing Line that permits them to ramp up tpd.
Lamaque must remain the main focus for the rest of 2008 and most of 2009. The circus in Peru is adistraction. If CMM can successfully negotiate deferred payments until 2009 they can revisit Shahuindo in mid-2009. Shahuindo was structured as an option deal anyway. Rosario payments definitely require immediate attention. L-T-D lenders like certainty.
Sulliden has been worryingly silent for most of April. Is anyone willing to hazard a guess about what they're working on behind closed doors to resolve the ownership issue? Appeals and counter-appeals will drag on for years if the scrapping labors on. When CMM's cash flow improves they'll easily make the quarterly payments which won't help SUE. (assuming that payments are deferred)
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