1) Rosario tech rpt – Not needed (BCSC agreed)
2) New San Juan tech rpt – Done (BCSC approved)
3) Revised Lamaque tech rpt – Done (BCSC approved)
4) All BCSC issues resolved - Done
5) Y/E fin and elim MCTO – expected by May 15th (next week)
6) Update on LT Debt situation – nearing the end of the 45 day period (where proposals were expected to be reviewed)
7) Close off of PP – due
8) Lamaque’s Q1 performance - due
9) Lamaque’s April performance - due
10) Update on Rosario/Algamarca payment deferrals – no updates in a while
11) Potential of bridge financing (loan)?????
12) Direction of CEO position?????
11 comments:
Production, PK is Chairman, CEO and President. The poll is clear - shareholders want her removed as CEO, what about the her Chairman position?
What steps are involved to remove underachieving CEOs and Chairs?
TD Securities seems to be doing a lot of cross trading today. Wonder what that is all about?
Million shares traded???? What am I missing....
TIA
Mike
I hope the poll is not what is going to be used since the same persons could vote repeatedly. How scientific is this? I think that the general sentiment is for PK to be removed as CEO, but I don't know that the poll here should be quoted as reason for such. Something more concrete and fair like voting at the AGM, for example, could be used.
Your guess is as good as mine.
TD person may have been selling in order to subscribe to the PP (and the $.40 warrants), given that the PP has not been closed off as yet. Also, with the BCSC issues now cleared up, there may have been a newly interested buyer (at $.195), hence the 500 - 600K cross.
Going forward, it would be nice if CMM is close to finding a LT Debt partner. It would still take a couple/few months to finalize any LT Debt, but nevertheless it may open up bridge financing possibilities. Without some sort of term sheet arrangement with a LT Debt partner, my guess is that it is virtually impossible for most juniors to attain bridge financing. However, establishing a LT Debt partner may allow the situation to be much more favourable for Century, as a targeted bridge loan provider would feel more secure of repayment (knowing that LT Debt funds should come available soon). This is why I believe that making progress with the LT Debt initiative might also assist with short term funding efforts. As mentioned, it could enable bridge financing possibilities. If bridge financing can be arranged then those funds should be available to the company quickly (at least relative to the LT Debt funds). If successful, bridge financing funds would eliminate any type PP shortfall issues (if there are any).
The 45 day period to review LT Debt proposals (from interested banking and equity institutions - May 25th NR) is almost over. Hopefully they were able to connect with one of the institutions. It may take some pressure off of the PP (as explained above).
Production05
But if it so hard to do debt financings right now, how should CMM be able to do an financing for Rosario or Shauindo if they can't even do it for Lamaque?! that's what's worries me here, but maybe they can debt finance Lamaque and use the money for Rosario, is that legitimate?
Hi Juha,
You make some good points, as usual.
Currently, (although Rosario has operating infrastructure, and is in production) Rosario is still at a very early ramp up stage. Also, Rosario does not have a 43-101 reserves report as yet. As such, my guess is that it would be extremely difficult to find debt financing for Rosario at this point in time. I believe this is why Century is attempting to defer the payments into 2009. The extra year would allow them to get the operation in shape (with exploration efforts funded by profits from the San Juan operation).
Come late 2009, with Rosario's production ounces ramped up, and 43-101 reserves established, Century should then not have a problem securing non-recourse debt on Rosario. By late 2009, Rosario should be a fully functioning profitable operation, that will be attractive to debt providers. Currently, it is not. Also, this will separate Rosario from other juniors. At that stage Rosario will be a profitable and established operation, and not just an in the ground deposit held by an exploration junior company.
However, first thing is first, Century needs to finalize the defer payment agreement with the sellers.
Production05
Thanks to everyone for the great comments posted here recently and a special thanks to Production05 for his exceptional input.
I just posted today's trades. Virtually all of the selling this week seems to be from a single seller from TD securities who has been placing large lots on the ask. Today there seemed to be a bit more urgency and it looks like TD found someone in-house to take the majority of those shares. Whether this is someone who has lost patience or, as Production suggests, is participating in the un-closed PP is any one's guess.
carambe, I doubt if the poll has much influence on whether or not PK is forced to resign, but it can't hurt. There is only one vote allowed per IP address. I suppose if someone really wanted to, they could get around that and vote often, but what's the point? It's only meant to be an indicator of investor sentiment, and I think it is safe to say that the sentiment is that we need management changes. Based on the company's potential, the share price is a huge embarrassment and the blame for that falls squarely on the CEO's shoulders.
Juha, I agree with Production wrt to Rosario and Shahuindo. When/if CMM gets debt financing, I doubt if it can be used for Peru. The Rosario payment schedule must be re-negotiated or the property sold. With Lamaque debt financing secured, San Juan will produce enough free cash flow to make the $1 million quarterly payments for Shahuindo, if necessary.
The Peru Supreme Court should be hearing SUE's appeal of the Superior Court's decision to strike down the Arbitration Award within the next month or two, and it is likely they will uphold that decision. It is mind-boggling that SUE can have a market cap higher than CMM. If CMM can maintain the quarterly payments and the Supreme Court rules against SUE, I can see the SUE share price making a big dive.
I think we can all agree that the big uncertainty right now is whether the company can raise the funds it needs to sustain operations until it becomes cash flow positive. They don't need a lot of money for that and if the PP is successful, those funds combined with the leasing line should be barely enough.
However a significant financing will be a huge development. It will allow rapid acceleration of infrastructure investment at Lamaque and pay off the existing debt. Depending on how large the financing is, we could qualify for a TSE listing as we have all of the needed 43-101's and (I believe)all we need is $10 million in operating capital. We can also look at spinning out the Peru properties into a separate company. (We can't do this until the IQ debt is repaid.)
Perhaps the biggest benefit to we long-suffering shareholders would be to overcome the scepticism that CMM can get any debt financing in the current sub-prime debt financing market. It would be a huge confidence boost.
The only other thing that would be bigger than a debt financing would be a new CEO.
Production 5,
you mention that the PP might not be closed yet. Do you know whether I can get my hands on some PP shares? Emails to Brent are not answered, maybe because I question their management practices too much and perhaps a tad bit too harsh.
To the "anon" who posted on this date :May 10, 2008 5:12 AM:
If you know that what you call "harsh" emails won't get you answers, why send them and come here looking for someone else to answer why you receive nothing in reply from Brent? Ask Brent!!!
If I write to Brent respectfully, as you full well know YOU should, he'll respond. But you already know this! When you feel good enough about yourself to the point where you don't think you have to be nasty to people you don't know for no reason, practice what your mother taught you, question respectfully, and you will get answers for sure.
Show Brent that you were brought up and not dragged up.
Nice to see you over here again.
Remember, Brent is paid to make things look positive. Send your emails to Peggy. Tell her that your're angry. BJ's a mushroom like us.
Hang in, brighter days are ahead.
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