I will try to post the NR in the comment section.
M. Kent: "Our recent share price decline has come from repeated program sales from a significant shareholder who has declined to work with management to move its block of stock. As long as this block overhangs the market, it will continue to cause pressure on the market price of the stock. The management team is working aggressively to introduce the company to new potential shareholders that will assist in stabilizing this situation. We ask that our existing shareholders remain patient during this difficult time and understand that the company has significant value in its assets and reserve and resource ounces."
http://www.newswire.ca/en/releases/archive/June2008/24/c7469.html
12 comments:
Carib, do you mind fixing my link to the NR? The format will be better via the link. It never seems to work with me, even when I hit "enter" afterwards.
I will still post in the comment section, but format might not work will with this NR.
What time is the conference call?
BRIDGE LOAN
This was the wording on the June 5th NR:
"subject to regulatory approval, it has arranged with a Swiss institution a C$6.0 million financing"
"Draw down conditional on due diligence on the Lamaque Mine and mining operations satisfactory to the lender."
"The convertible debenture is scheduled to close immediately and draw down of the bridge facility is expected in the near term."
This is the wording in tonight's NR:
"On June 5, 2008 the Company announced that it had secured a commitment for $6 million of this facility from MRI Trading AG."
Tonight's NR doesn't specifically mention that the due diligence has been completed and the draw down has been approved. I'm hoping that the use of the term "secured", in tonight's NR, is intended to signify that it's a done deal, and we are fully covered from a bridge cash perspective.
Production05, with PK's "wording" you can nver be sure about the exact situation with a disclosure (like the bridge loan).
On another point, the fact that she has not been able to line up any firm buyers for WEGA's shares (even at the current bargin-basement price!) is another sign that no-one wants to deal with her. JMHO
Coincidence?
Posted On: Tuesday, June 24, 2008, 9:35:00 PM EST
The Crime Of The Century
Author: Jim Sinclair
Dear Friends,
This is the Jim Puplava's webcast presentation titled ?The Crime of the Century.? Please click the link below to download the presentation in MP3 format.
http://netcastdaily.com/broadcast/fsn2008-0621-3b.mp3 (Approximately 17.7mb)
You know that I do not read other blog sites so if I go off the mark you will have only one person to blame - me. Here is an exception, thanks to the CIGAs that demanded I listen. It was good advice.
I suggest you make the time to do the same.
Chart painting is a major tool being used now against you. I am not suggesting TA be ignored. I am, as always, suggesting that if you know the plot, you will know when you have to weigh in on the fundamentals to balance your thinking.
Many juniors are worth more dead than alive. That means you could market the pieces for more than the cap value.
The shorts seem to now be driven more by ego and power trips than brains. Brains would give them the ability to know when enough is enough, if only from a functional profit standpoint.
If a junior is shorted in a situation where it would take 3 months to cover at 50% of the legal short on an average daily volume and that company could be sold in pieces for more than the quoted value, TA might be rendered less important in the equation with fundamentals becoming more significant.
The short depends on your FEAR of the UNKOWN. Call your company and be in the know. If you prefer, try Mike Martin at 1-800-426-3987. He worked for me for years as a metals equity analyst. I have great respect for the depth of his knowledge.
Unlike a manufacturing company you can only put a junior on hold, you cannot break one. The reason is that they have no debt. All you can accomplish is make them sit on an appreciating asset which might actually be to doing them a great favor.
The game has now exceeded the parameters of reason as the shorts seem to be power tripping, having lost their grip by ignoring common commercial sense. Don't lose your grip by letting them paint a TA condition at a level at which TA is only a modest part of the total equation. I am assuming you are all not on margin.
Respectfully yours,
Jim
Hey Bigjohn37,
I hear ya. There is not a lot of credibility left (if any) with this management team and BOD. One cannot treat shareholders like they have and then suddenly show up and expect to come across as being genuine and believable. There are many people in the world that lack integrity to begin with, and then you couple that with the degree to which these folks have disrepected their shareholders? Are these people shameless?
Anyway, if they haven't closed off the bridge loan by now (after 3 weeks from the original annoucement) then let's hope they do it real soon. In my view, closing off the bridge loan is the absolute top priority for the company right now, for obvious reasons of course.
Production05
production05,
This is from the M&D
"On June 2, 2008 the company agreed with a Swiss financial institution on the terms of a 1$ million convertible debenture which was completed on June 12, 2008 and a $5million loan to be completed by June 30, 2008."
The thing that worries me right now, is this deficiency that constantly is building up. I wonder when they must pay parts or the whole of this amount. Don't they have any gold to sell to pay a part of it atleast?
Hi Juha,
CMM's dire financial situation is the consequence of the CEO's ego-trip by blowing several million dollars on acquisitions of questionable value. Any good management would have some contingency plans in place (with appropriate financial resources to back them up). But not this one. And there is no gold in the vault; only in the ground (but it costs money to dig it up, and we don't have the money!). It seems that PK's management style is a prescription for bankruptcy.
Yeah, but i still wonder about this $60+ million deficit recorded at the end of 07. I guess that the Rosario deal was included in this amount, and also parts of the Shauindo deal perhaps? Besides the working capital defficiency(let's say $15m)they also have the long term debt of 15$m or less, and on top of that they have leased machines at the site.(but this is needed at the site anyway so..) So if i understands all things correctly, CMM will have as of now perhaps $30M defficiency in reality. 15 million long term and 15 million short term+ofcouse potential legal fees and uncertaintes. Please correct me if i'm wrong
Hi Production,
As per your post yesterday, quoting from the NR: "Our recent share price decline has come from repeated program sales from a significant shareholder who has declined to work with management to move its block of stock."
It's not Wega that is doing most of the selling - it's someone selling through Canaccord that keeps putting up shares at the 10-cent ask. I guess he won't deal with PK either.
Another 496k dumped so far today with over 100k on the ask. Total sales in June for Canaccord are up to 4.2 million shares while Wega is at 2.7 million.
Carib,
The only thing that will turn the tide is good news from Century. Do they have anything in the pipe?
A CEO resignation perhaps? A contrite Chair apology to the retail shareholders? Surprisingly good production update from Lamaque? Announcement that the Swiss bridge loan is in the bank account? A surprise announcment that they have found another lender and don't need Fortes? The BCSC removes the MCTO and all CMM Directors buy 3 million shares each and guarantee to hold them for 2 years?
Natik, just a few of those possibilities would make a huge difference in sentiment and share price.
I wouldn't count on surprisingly good production numbers from Lamaque though. From the MD & A: "The company is currently expanding Lamaque production from 300 tpd to 1,600 to 1,800 tpd". Perhaps that's why we haven't received the long-awaited update.
The new forecast for 2008 is 40,000 oz. which means they'll need 25k from Lamaque and 15k from SJ with Rosario now out of the picture.
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