Not much to post about lately as we wait until we see what inquiries Blair Franklin receives.
In the meantime, Wega is losing patience with trying the sell the balance of their shares at 5 cents. Yesterday there were only takers for 320,000 of those shares, so today they lowered the bar by dumping over a million at 4.5 and 4 cents and by moving the ask down to 4 cents.
The more selling by RBC, the less likely that Wega had sold millions of shares through Canaccord. It's looking more likely that one or both of the other two major institutional shareholders, Scion and Ingalls and Schneider, shorted the stock while the MCTO was in place. We'll never know.
At 4 cents our market cap drops to $6.7 million. That's about $1.37/ounce. Sounds like a K-Mart blue light special. To get some context, check out this MineWeb article:
http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=57751&sn=Detail
RBC has sold just over 9 million shares since Wega's last insider trading report. If all of their sales are through RBC, that would leave them with just over 6 million shares left. At today's pace, that's about 4 days worth of selling.
Wednesday, July 30, 2008
Thursday, July 24, 2008
Kinross Buys Aurelian Resources
Why is the takeover of Aurelian Resources relevant to Century shareholders you may ask. Well Kinross is paying $88 per inferred ounce for Aurelian's 13.7 million inferred ounces in Ecuador. Ecuador! At one end of the mining friendly jurisdictions in the world you have Quebec, Canada and near the other end you have countries like Venezuela, Bolivia and Ecuador and some African countries.
In April, the share prices of all mining companies operating in Ecuador took a beating after the government adopted a decree that would suspend mining activity in medium and large-scale exploration projects, and revoked concessions, limiting the total concessions held by one company to three. Shortly thereafter Aurelian suspended operations.
Ecuador is planning to introduce new mining legislation to give the country more control of mining and a much larger share of revenues. In the face of all of this adversity, Kinross offers $88/inferred oz - a premium of 63%. This shows how much the majors need replacement ounces.
At the other end of the scale, Century has almost 5 million ounces, primarily in Quebec. Discounting the value of infrastructure to mine those ounces and outstanding debt, those ounces are currently valued at less than $2/ounce and 1.3 million of those ounces are reserves.
I simply can't imagine someone not offering 10 times this amount for those ounces and even then it would be a small fraction of what Kinross is paying for ounces in Ecuador.
It is simply mind-boggling that we are at 5 cents per share. I see Wega refusing to accept more than 5 cents per share again today. As their offer of 5 cents is taken out, they keep replacing it and have already sold 1.2 million shares today and they sold 2.6 million shares yesterday.
In April, the share prices of all mining companies operating in Ecuador took a beating after the government adopted a decree that would suspend mining activity in medium and large-scale exploration projects, and revoked concessions, limiting the total concessions held by one company to three. Shortly thereafter Aurelian suspended operations.
Ecuador is planning to introduce new mining legislation to give the country more control of mining and a much larger share of revenues. In the face of all of this adversity, Kinross offers $88/inferred oz - a premium of 63%. This shows how much the majors need replacement ounces.
At the other end of the scale, Century has almost 5 million ounces, primarily in Quebec. Discounting the value of infrastructure to mine those ounces and outstanding debt, those ounces are currently valued at less than $2/ounce and 1.3 million of those ounces are reserves.
I simply can't imagine someone not offering 10 times this amount for those ounces and even then it would be a small fraction of what Kinross is paying for ounces in Ecuador.
It is simply mind-boggling that we are at 5 cents per share. I see Wega refusing to accept more than 5 cents per share again today. As their offer of 5 cents is taken out, they keep replacing it and have already sold 1.2 million shares today and they sold 2.6 million shares yesterday.
Wednesday, July 23, 2008
Century Mining hires Blair Franklin as adviser
Century Mining Corp (C:CMM) Shares Issued 168,739,266Last Close 7/22/2008 $0.07
Wednesday July 23 2008 - News Release
Mr. Brent Jones reports
CENTURY MINING HIRES ADVISORS TO EVALUATE STRATEGIC OPTIONS
Century Mining Corp. has initiated a strategic review process in response to recent difficulties the Company has encountered in its efforts to secure financing. This review process was initiated as a result of Century's evaluation of severe equity market conditions and the current valuation of the Company.
The Board of Directors has therefore engaged Blair Franklin Capital Partners as financial advisors, to identify alternatives available to Century that will enhance shareholder value.
The strategic review will encompass a thorough analysis and evaluation of the prospects and options available to the Company, including the sale of the Company or its assets, the recapitalization of the Company or other alternatives that may be identified by the Company's advisors or Board of Directors.
Margaret Kent, President & CEO said: "We are asset rich, but lacking in working capital. We fully intend to continue all internal work toward completing the due diligence process related to the Fortis Bank financing for Lamaque. Parallel to this process, the Company will explore strategic alternatives which could enhance shareholder value. The Company believes that there are several alternatives that could ease the strain of our current working capital deficit and allow us to move forward and grow the Company during this difficult time we are experiencing in the resource equity markets."
© 2008 Canjex Publishing Ltd.
Wednesday July 23 2008 - News Release
Mr. Brent Jones reports
CENTURY MINING HIRES ADVISORS TO EVALUATE STRATEGIC OPTIONS
Century Mining Corp. has initiated a strategic review process in response to recent difficulties the Company has encountered in its efforts to secure financing. This review process was initiated as a result of Century's evaluation of severe equity market conditions and the current valuation of the Company.
The Board of Directors has therefore engaged Blair Franklin Capital Partners as financial advisors, to identify alternatives available to Century that will enhance shareholder value.
The strategic review will encompass a thorough analysis and evaluation of the prospects and options available to the Company, including the sale of the Company or its assets, the recapitalization of the Company or other alternatives that may be identified by the Company's advisors or Board of Directors.
Margaret Kent, President & CEO said: "We are asset rich, but lacking in working capital. We fully intend to continue all internal work toward completing the due diligence process related to the Fortis Bank financing for Lamaque. Parallel to this process, the Company will explore strategic alternatives which could enhance shareholder value. The Company believes that there are several alternatives that could ease the strain of our current working capital deficit and allow us to move forward and grow the Company during this difficult time we are experiencing in the resource equity markets."
© 2008 Canjex Publishing Ltd.
Tuesday, July 22, 2008
Friday, July 18, 2008
Century resolves all regulatory issues
- Management and insider cease trade order revoked today -
BLAINE, WA, July 18 /CNW/ - Century Mining Corporation (CMM: TSX-V) announced today that the management cease trade order issued by the British Columbia Securities Commission (BCSC) on March 20, 2008 was revoked today, and the Company has resolved all outstanding issues regarding disclosure with the BCSC.
Margaret Kent, President & CEO said: "We have worked diligently over the past several months to address all of the disclosure issues raised by the British Columbia Securities Commission and we are pleased to announce that these have now been resolved. The Company maintains a policy of meeting all disclosure requirements of the TSX-V, the BCSC and all other regulatory bodies. We look forward to continuing our focus on completing necessary financing to fund the restart and ramp up of production at the Lamaque underground mine."
BLAINE, WA, July 18 /CNW/ - Century Mining Corporation (CMM: TSX-V) announced today that the management cease trade order issued by the British Columbia Securities Commission (BCSC) on March 20, 2008 was revoked today, and the Company has resolved all outstanding issues regarding disclosure with the BCSC.
Margaret Kent, President & CEO said: "We have worked diligently over the past several months to address all of the disclosure issues raised by the British Columbia Securities Commission and we are pleased to announce that these have now been resolved. The Company maintains a policy of meeting all disclosure requirements of the TSX-V, the BCSC and all other regulatory bodies. We look forward to continuing our focus on completing necessary financing to fund the restart and ramp up of production at the Lamaque underground mine."
Tuesday, July 15, 2008
Next Poll
When will the BCSC lift the MCTO? My guess is by the 15th of August. Bureacracy rules! PK et al. better have smashed their Miss PIGGY banks and buying all they can at these fire sale prices. Amazing how she got to be CEO of the year?????????
Sunday, July 13, 2008
Article: Today's crunch feels like '70s
This article is not from a gold related site, but rather it's from a mainstream site (Yahoo's main page). It's probably a reflection that more and more people in the mainstream are embracing the comparisons to the '70's. Let's hope that Century's management doesn't completely blow it for us shareholders. Anyway, the article provides some good stats, if anyone is interested. I will post the article in the comment section, as it is long.
Friday, July 11, 2008
News Releases vs Sedar Filings
Feb 21, 2008 News Release:
Production from the Lamaque underground mine has steadily increased from 5,137 tonnes of ore in October 2007 to 7,783 tonnes in January 2008. Century currently forecasts average production from the Lamaque underground mine of 300 tonnes of ore per day in the first quarter of 2008.
Mar 25, 2008 News Release:
Average daily production for March (through March 23) was 325 tonnes of ore per day.
For the month of April, the Company expects to increase production to approximately 400 tonnes of ore per day from the underground mine.
What can we extrapolate from these news releases? Production in January was 251 tpd based on working the full 31 days. This increased to 325 tpd for the first 23 days of March, so for February one would expect somewhere between 251 tpd and 325 tpd. The average of the two is 288 tpd, but to be conservative let's assume 275 tpd.
April was forecast to be 400 tpd so for the last 8 days of March the production should have exceeded the month-to-date average, but let's be conservative again and assume no increase.
Therefore we should reasonably expect the following for Q1 production from Lamaque:
January - actual reported = 7,783 tonnes
February - 29 days x 275 tpd = 7,975 tonnes
March - 31 days x 325 tpd = 10,075 tonnes
Total = 25,833 tonnes
Average tpd for Q1 = 284 tpd
Forecast tpd for Q1 = 300 tpd
Actual as reported on Q1 financials: 17,045 tonnes
Average tpd for Q1: 187 tpd
Nov 5, 2007 news release:
The Lamaque mine is currently producing 350 to 400 tonnes of ore per day at an average grade of approximately 5.5 grams per tonne.
Production from the Lamaque underground mine has steadily increased from 5,137 tonnes of ore in October 2007 to 7,783 tonnes in January 2008. Century currently forecasts average production from the Lamaque underground mine of 300 tonnes of ore per day in the first quarter of 2008.
Mar 25, 2008 News Release:
Average daily production for March (through March 23) was 325 tonnes of ore per day.
For the month of April, the Company expects to increase production to approximately 400 tonnes of ore per day from the underground mine.
What can we extrapolate from these news releases? Production in January was 251 tpd based on working the full 31 days. This increased to 325 tpd for the first 23 days of March, so for February one would expect somewhere between 251 tpd and 325 tpd. The average of the two is 288 tpd, but to be conservative let's assume 275 tpd.
April was forecast to be 400 tpd so for the last 8 days of March the production should have exceeded the month-to-date average, but let's be conservative again and assume no increase.
Therefore we should reasonably expect the following for Q1 production from Lamaque:
January - actual reported = 7,783 tonnes
February - 29 days x 275 tpd = 7,975 tonnes
March - 31 days x 325 tpd = 10,075 tonnes
Total = 25,833 tonnes
Average tpd for Q1 = 284 tpd
Forecast tpd for Q1 = 300 tpd
Actual as reported on Q1 financials: 17,045 tonnes
Average tpd for Q1: 187 tpd
Nov 5, 2007 news release:
The Lamaque mine is currently producing 350 to 400 tonnes of ore per day at an average grade of approximately 5.5 grams per tonne.
Q1 Financials Filed at Sedar
The Q1 Financials and Management's Discussion and Analysis have been filed at Sedar. I have posted the MD & A in the Information Links.
Highlights:
Operating profit of $710k
Net Loss of $1,810k
SJ produced 4,058 oz at a cash cost of $609 and a realized price of $711.
Net Loss includes $900k unrealized hedge loss.
The weakening of the US dollar has also caused a significant increase in the price of gold, which began in September 2007 and has caused the Company to record a non-cash provision of $4.2 million for unrealized losses on derivative contracts and its gold loan facility as of March 31, 2008.
That damn weak US dollar!! LOL!
The Company has been delivering its production into these contracts. At July 7, 2008 the
Company bought out at a price of $923 per ounce its forward position of 11,100 ounces
of forward contracts with a delivery price of US$727 per ounce.
Now there's a bit of good news, but where did they get the money for that? Probably an agreement to pay $2,175,600 when they get the money. With gold moving up to $965 today, we can finally share in the upside.
Short-term bridge financing of $1 million has been obtained from MRI Trading, and another $5 million has been committed by MRI Trading, but other efforts to obtain additional short-term debt financing have not been successful, and in particular a lease financing commitment announced by the Company could not be completed because of concerns of the lessor that arose after credit approval but before documentation was completed. The Company also plans to issue new equity to supplement the debt financing and further leasing initiatives.
They finally came clean on the leasing line. What's this about issuing new equity? Is it a condition of the Fortis financing similar to the MRI bridge loan?
Highlights:
Operating profit of $710k
Net Loss of $1,810k
SJ produced 4,058 oz at a cash cost of $609 and a realized price of $711.
Net Loss includes $900k unrealized hedge loss.
The weakening of the US dollar has also caused a significant increase in the price of gold, which began in September 2007 and has caused the Company to record a non-cash provision of $4.2 million for unrealized losses on derivative contracts and its gold loan facility as of March 31, 2008.
That damn weak US dollar!! LOL!
The Company has been delivering its production into these contracts. At July 7, 2008 the
Company bought out at a price of $923 per ounce its forward position of 11,100 ounces
of forward contracts with a delivery price of US$727 per ounce.
Now there's a bit of good news, but where did they get the money for that? Probably an agreement to pay $2,175,600 when they get the money. With gold moving up to $965 today, we can finally share in the upside.
Short-term bridge financing of $1 million has been obtained from MRI Trading, and another $5 million has been committed by MRI Trading, but other efforts to obtain additional short-term debt financing have not been successful, and in particular a lease financing commitment announced by the Company could not be completed because of concerns of the lessor that arose after credit approval but before documentation was completed. The Company also plans to issue new equity to supplement the debt financing and further leasing initiatives.
They finally came clean on the leasing line. What's this about issuing new equity? Is it a condition of the Fortis financing similar to the MRI bridge loan?
Thursday, July 10, 2008
Hopefully end of the nightmare and a SEMI-new beginning
Hopefully we receive Q1 financials and MRI draw-down approval over the next couple/few days. Of course, we all fully recognize the criticalness of the MRI funds. However, for me (assuming we get the MRI dollars), this period will be pivotal for many other reasons as well. Personally, I think this current phase of the Century nightmare started in May 2007, with the Rosario purchase and the Shahuindo / Algamarca option agreement – about 16 months ago. Simply put, WE HAVE GONE THROUGH 16 MONTHS OF HELL:
1) Share price - $1.28 (peak), then 16 months of bleeding all the way down to $.045 – a 96.5% loss in shareholder value, while the gold price reached all time levels (meanwhile, for fiscal 2007, the CEO accepted $60K in bonuses while the VP Operations accepted $30K in bonuses – to this day, I still find it unbelievable, especially given that the company’s core asset (Sigma o/p) failed completely, and was actually permanently shut down in 2007). Words are cheap – actions speak very loudly. Given what I have just highlighted, how can I ever believe that the CEO, the VP Operations and the BOD view shareholder value as top priority?
2) Rosario – turned out to be complete junk.
3) Shahuindo / Algamarca – what a complete embarrassment to Century Mining shareholders, never mind the millions of $’s in cash out the door (nothing in return) and opportunity costs from taking focus and cash away from the company’s other projects (i.e. Lamaque and San Juan). How advanced would Lamaque and San Juan be right now had the company not gotten involved in this well known messy situation known as Shahuindo / Algamarca? How much lower would our issued share count be today?
4) Starting Feb 1’08, Century’s largest shareholder began behaving as if they wanted to push Century Mining into bankruptcy or to the verge of bankruptcy (if they didn’t get what they wanted), IMO. The remaining Century shareholders are very fortunate for the potential opportunities of MRI, Fortis and other (unforeseen) opportunities that might come available in the future.
5) CTO / BCSC disaster in early March ’08.
6) Lamaque curtailment due to the inabilities to raise cash in a timely manner.
7) Slow development progress at San Juan, therefore unable as yet to step up as a complete contingency asset for the company.
8) It is unfortunate we don’t have a BOD that care much about fiduciary duties, IMO – the nightmare might not have lasted for 16 months.
9) It is unfortunate we didn’t / don’t have more ideal institutional shareholders (our abilities to remedy the situation would have been / would be substantially better).
PROGRESS:
1) Share price will move once critical remaining items are addressed (i.e. MRI) – hopefully real soon.
2) Rosario mess – gone (assuming paperwork is fine)
3) Shahuindo / Algamarca – gone (assuming paperwork is fine)
4) Wega Mining – almost completely gone (they probably have sufficient shares left for a final few blasts, but their time remaining is very limited)
5) BCSC / MCTO – gone, with the issuance of Q1 financials (resulting in simultaneous lifting of the MCTO)
6) They can maximize the benefits from the curtailment situation if they manage it well. They need to stay in touch with their employees, and keep them up to speed with everything – basically, show some humanity, and be genuine about it. Apparently, the curtailment has reduced the monthly burn rate by about 70%. The MRI funds should get them through the curtailment period without any issues, unless management makes any other BONEHEADED mistakes.
7) Fortis is looking good (especially if MRI goes though – MRI and Fortis appears to have a good historical working relationship), but there is still no guarantee that Fortis will give their approval at the end of the 5 month process. As a result, Century needs to have a contingency plan to take care of basic business needs, to ensure viability. San Juan needs to be the contingency plan. It looks like Century is attempting to ramp up to 25,000 ounces of run rate production by Y/E 2008 (without any further capital injection). However, apparently, (as part of the AGM update) the San Juan GM(?) said that he could bring the SJ production run rate up to 35,000 in 2009 by spending only $1M on automation. Apparently, there are a number of members of the SJ workforce that will be retiring over the next couple of years, so automation also works well from a timing perspective. If Century is able to ramp San Juan up to 35,000 ounces of production in 2009 (with the low cash cost per oz of $350, and gold prices expected to remain high) then San Juan should be able to carry the load for the entire company, in case Fortis doesn’t go through (the company would then be able to seek out alternative funding avenues for Lamaque).
8) Hopefully the newer Directors (Campoy, Lettes and the 7th director - still to be appointed) will eventually be able to change the culture of the BOD (to become shareholder focused). Hopefully they will eventually address the CEO situation.
9) No longer having Wega as a major Century shareholder will help a bit, but the bottom line is still the same (Century has no institutional shareholders that have deomonstrated the abilities to bring the shareholder base together to guide the company in a direction that is beneficial to all shareholders). Hopefully some more ideal institutional shareholders come onboard eventualy, once Century is viewed as a stronger investment.
1) Share price - $1.28 (peak), then 16 months of bleeding all the way down to $.045 – a 96.5% loss in shareholder value, while the gold price reached all time levels (meanwhile, for fiscal 2007, the CEO accepted $60K in bonuses while the VP Operations accepted $30K in bonuses – to this day, I still find it unbelievable, especially given that the company’s core asset (Sigma o/p) failed completely, and was actually permanently shut down in 2007). Words are cheap – actions speak very loudly. Given what I have just highlighted, how can I ever believe that the CEO, the VP Operations and the BOD view shareholder value as top priority?
2) Rosario – turned out to be complete junk.
3) Shahuindo / Algamarca – what a complete embarrassment to Century Mining shareholders, never mind the millions of $’s in cash out the door (nothing in return) and opportunity costs from taking focus and cash away from the company’s other projects (i.e. Lamaque and San Juan). How advanced would Lamaque and San Juan be right now had the company not gotten involved in this well known messy situation known as Shahuindo / Algamarca? How much lower would our issued share count be today?
4) Starting Feb 1’08, Century’s largest shareholder began behaving as if they wanted to push Century Mining into bankruptcy or to the verge of bankruptcy (if they didn’t get what they wanted), IMO. The remaining Century shareholders are very fortunate for the potential opportunities of MRI, Fortis and other (unforeseen) opportunities that might come available in the future.
5) CTO / BCSC disaster in early March ’08.
6) Lamaque curtailment due to the inabilities to raise cash in a timely manner.
7) Slow development progress at San Juan, therefore unable as yet to step up as a complete contingency asset for the company.
8) It is unfortunate we don’t have a BOD that care much about fiduciary duties, IMO – the nightmare might not have lasted for 16 months.
9) It is unfortunate we didn’t / don’t have more ideal institutional shareholders (our abilities to remedy the situation would have been / would be substantially better).
PROGRESS:
1) Share price will move once critical remaining items are addressed (i.e. MRI) – hopefully real soon.
2) Rosario mess – gone (assuming paperwork is fine)
3) Shahuindo / Algamarca – gone (assuming paperwork is fine)
4) Wega Mining – almost completely gone (they probably have sufficient shares left for a final few blasts, but their time remaining is very limited)
5) BCSC / MCTO – gone, with the issuance of Q1 financials (resulting in simultaneous lifting of the MCTO)
6) They can maximize the benefits from the curtailment situation if they manage it well. They need to stay in touch with their employees, and keep them up to speed with everything – basically, show some humanity, and be genuine about it. Apparently, the curtailment has reduced the monthly burn rate by about 70%. The MRI funds should get them through the curtailment period without any issues, unless management makes any other BONEHEADED mistakes.
7) Fortis is looking good (especially if MRI goes though – MRI and Fortis appears to have a good historical working relationship), but there is still no guarantee that Fortis will give their approval at the end of the 5 month process. As a result, Century needs to have a contingency plan to take care of basic business needs, to ensure viability. San Juan needs to be the contingency plan. It looks like Century is attempting to ramp up to 25,000 ounces of run rate production by Y/E 2008 (without any further capital injection). However, apparently, (as part of the AGM update) the San Juan GM(?) said that he could bring the SJ production run rate up to 35,000 in 2009 by spending only $1M on automation. Apparently, there are a number of members of the SJ workforce that will be retiring over the next couple of years, so automation also works well from a timing perspective. If Century is able to ramp San Juan up to 35,000 ounces of production in 2009 (with the low cash cost per oz of $350, and gold prices expected to remain high) then San Juan should be able to carry the load for the entire company, in case Fortis doesn’t go through (the company would then be able to seek out alternative funding avenues for Lamaque).
8) Hopefully the newer Directors (Campoy, Lettes and the 7th director - still to be appointed) will eventually be able to change the culture of the BOD (to become shareholder focused). Hopefully they will eventually address the CEO situation.
9) No longer having Wega as a major Century shareholder will help a bit, but the bottom line is still the same (Century has no institutional shareholders that have deomonstrated the abilities to bring the shareholder base together to guide the company in a direction that is beneficial to all shareholders). Hopefully some more ideal institutional shareholders come onboard eventualy, once Century is viewed as a stronger investment.
Tuesday, July 8, 2008
Bid/Ask Changes
A steady diet of sellers selling into the .045 cents until a little bit ago. Ask has now changed from .05 to .055. Could that be because of the wall that seems to be forming at .045???
It looks like .045 is the price that is catching attention. I wonder how many shares our BOD is buying at this price...LOL
Mike
It looks like .045 is the price that is catching attention. I wonder how many shares our BOD is buying at this price...LOL
Mike
The New Guy (on the block)...at CMM
Someone posted on this Board on July 3 that the New Guy who was brought in to help straighten out the mess at CMM is Tim Gooch from down-under. He was Managing Director for View Resources Ltd.
Here is a weblink to the Management & and Directors of View Resources, to give you an idea who Mr Gooch is:
http://www.viewresources.com.au/directors.php
The sooner Tim Gooch takes over at CMM as CEO, the better, IMHO
Here is a weblink to the Management & and Directors of View Resources, to give you an idea who Mr Gooch is:
http://www.viewresources.com.au/directors.php
The sooner Tim Gooch takes over at CMM as CEO, the better, IMHO
Monday, July 7, 2008
Today's Trading
Canaccord sold over 4 million shares today. IMO there is little doubt that this is Wega and Wega has been selling through Canaccord for the past month.
I think we were too focused on RBC, but Wega only used RBC and Byron to buy its CMM shares in the market. 13,483,146 shares were acquired in a private placement and these are the shares that Canaccord is probably selling (or shorting with the 13 million shares available to cover). When Scion sold 4 million shares in December, they were also sold by Canaccord.
In the past month Canaccord has sold 10,578,300 shares and RBC has sold 7,486,990 so hopefully Wega has almost spent all of its ammo. That's a lot of shares to be absorbed by the market.
Today's trades have been posted.
I think we were too focused on RBC, but Wega only used RBC and Byron to buy its CMM shares in the market. 13,483,146 shares were acquired in a private placement and these are the shares that Canaccord is probably selling (or shorting with the 13 million shares available to cover). When Scion sold 4 million shares in December, they were also sold by Canaccord.
In the past month Canaccord has sold 10,578,300 shares and RBC has sold 7,486,990 so hopefully Wega has almost spent all of its ammo. That's a lot of shares to be absorbed by the market.
Today's trades have been posted.
Sunday, July 6, 2008
Opinion on Wega Mining ASA
In my opinion, Wega Mining ASA has a severe structural flaw (at least as a major shareholder invested in the same investment as me). In my view, Wega Mining ASA is too heavily influenced by one person. Jan Haudemann-Andersen:
“Mr. Haudemann-Andersen is a private investor and owner of Datum AS. …… Mr. Haudemann-Andersen is chairman in Datum AS, Wega ASA, and Maximus AS, ….”
http://www.wegamining.com/employee.cfm?path=2,19
Ownership in Wega Mining is as follows (per the Wega Mining website – at Jun 16’08):
*Datum AS – 32.06%
*Wega AS (this is an investment company, with this person being the Chairman of a 3 member board) – 4.81%
*Maximus AS – 3.37%
http://www.wegamining.no/section.cfm?path=14,35
It means that this one solitary person, Mr. Haudemann-Andersen, has either direct ownership, or significant influence, over more then 40% of Wega Mining ASA’s issued shares.
If this one single person had a specific mission in life, and had no problem with spending $23M to simply get his point across (regardless of the severity and the extent of the collateral damage to others), who associated with Wega Mining ASA would be able to stand up to this individual?
“Mr. Haudemann-Andersen is a private investor and owner of Datum AS. …… Mr. Haudemann-Andersen is chairman in Datum AS, Wega ASA, and Maximus AS, ….”
http://www.wegamining.com/employee.cfm?path=2,19
Ownership in Wega Mining is as follows (per the Wega Mining website – at Jun 16’08):
*Datum AS – 32.06%
*Wega AS (this is an investment company, with this person being the Chairman of a 3 member board) – 4.81%
*Maximus AS – 3.37%
http://www.wegamining.no/section.cfm?path=14,35
It means that this one solitary person, Mr. Haudemann-Andersen, has either direct ownership, or significant influence, over more then 40% of Wega Mining ASA’s issued shares.
If this one single person had a specific mission in life, and had no problem with spending $23M to simply get his point across (regardless of the severity and the extent of the collateral damage to others), who associated with Wega Mining ASA would be able to stand up to this individual?
Saturday, July 5, 2008
Gold: the precious laggard that will hit $2,000
Will CMM be around to enjoy the party?
Gold: the precious laggard that will hit $2,000
By Ian Williams, Charteris Treasury Portfolio Managers
Last Updated: 11:38pm BST 04/07/2008
In 1999 when oil was $10 a barrel, I suggested that the price would ride fivefold to $50 a barrel in real terms over the next few years. This forecast was dismissed with incredulity at the time. Almost 10 years later with the price over $130 a barrel, my original forecast turned out to be rather timid - with mainstream commentators now forecasting $200 a barrel.
Soaring oil costs have pushed the gold/oil ratio to the lowest levels in decades
My forecast was based on an analysis of long term future supply-demand trends, combined with a study of ultra-long term commodity cycles.
What is striking about ultra-long term commodity cycles is how seemingly unrelated commodities appear to rise and fall together.
Price data shows that around 1999-2000, virtually every single commodity hit a significant low before turning up sharply. Nickel hit a low before proceeding to rise ten-fold in the period up to April 2007. Similarly copper also bottomed around this time before an eight-fold rise up to May 2006. Copper is once again challenging its all-time high and looks set to move into new high ground.
The reasons for this stellar performance are now well-trodden - the emergence of China, India and Russia - as major consumers of scarce and in some cases increasingly finite resources.
advertisement
This commodity super-cycle phenomenon shows no signs of abating. But to profit from it, investors need an understanding of the leads and lags within the commodity family to avoid being caught buying a particular commodity at a short-term peak in its price. I would be very wary about buying oil assets at present - simply because the price of oil in relationship to other raw materials is becoming very stretched.
Instead a study of the laggards in the raw material family is likely to prove more profitable and carry less risk.
Gold is one of the biggest laggards and the one that confuses investors most. Like other commodities it made its super-cycle low in 1999 at $250 an ounce - a level now etched on the record of Gordon Brown who made the calamitous decision to sell half the UK's gold reserves at the absolute bottom of the market. Unlike oil, copper, nickel and a host of other commodities which have seen rises of between eight and thirteen fold increases in the last ten years, gold has risen a mere three and a half times from its low. This puts gold and gold mining shares very firmly in the laggard category.
The sharp rise in oil and the relatively low rise in gold has pushed the gold/oil ratio to the lowest levels seen for decades. Either gold is incredibly cheap or oil is incredibly expensive on a relative basis.
Even if oil were to succumb to short term profit-taking, very few commentators think that it would fall back much below $80 a barrel - a level still eight times its low in 1999. (Gold hit a peak of $850 in 1980 and to equate that in real terms, ie adjusted for inflation, gold today would have to rise to around $2,500 an ounce at present. A rise of that magnitude would also restore the gold/oil ratio to its historic norm.)
A common reason offered for gold's relative underperformance is that it other commodities are driven solely by industrial demand whereas gold is subject to investor demand. This is only partially correct. Currently global jewellery demand of around 2,400 tonnes a year, roughly equates to global mine output so that this market is in balance. (Unlike oil, where a surplus of supply over consumption - as distinct from demand - has existed for several years.)
The swing factor that will affect the gold market is investor demand. Global investors can now buy exchange traded certificates (ETCs) and exchange traded funds (ETF) which alleviate the need to hold physical bullion in a bank vault.
The demand from this source has to be set against supply from the central banks who have been consistent sellers over the last few years. The balance between these two holds the key to if and when gold will catch up with the other commodities.
On a two to three year view the outlook looks increasingly bullish. Rising inflationary expectations around the world will lead to greater investor demand for inflation protected assets of which gold's 2000-year history in this space is unrivalled.
Previously it was the sale of gold by central banks that supplied the market and helped keep a lid on the gold price.
Gold jewellery demand is in balance
But this strategy is looking more and more like a busted flush. It is unlikely that the UK will be in a rush to sell any more of the Bank of England's gold, not that it has much left to sell. The same applies to many other central banks such as Holland, Belgium and Canada who have been long-term sellers of gold. They have run out of gold to sell. At the same time the central banks of the emergent economies, have become buyers.
Recent evidence shows that the central banks of Russia and Argentina are buyers. It is also rumoured but not confirmed that the central bank of China and other sovereign wealth funds are also buyers. As these possible central bank buyers have trillions more cash than the Western central banks have gold, it is very easy to envisage a scenario where the central banks in aggregate turn into net buyers - even if certain western central banks continue to sell.
And it is difficult to see where the extra supply would come from as mine output struggles to grow.
The gold market would then suffer a severe price squeeze similar to that already seen in other raw materials. Investors who subscribe to this view should look to either buying gold direct (via ETFs or ETCs ) or to possibly make even more money in the gold mining sector. It is our belief at Charteris that in the current environment every portfolio should have an exposure to gold.
We favour certain selected mining stocks over ETCs or ETFs as they traditionally provide a geared play on the metal itself. If our view is correct that gold will more than double then we would expect several of our favourite mining shares to rise five or tenfold in the years ahead.
Ian Williams is chief executive of Charteris Treasury Portfolio Managers
Gold: the precious laggard that will hit $2,000
By Ian Williams, Charteris Treasury Portfolio Managers
Last Updated: 11:38pm BST 04/07/2008
In 1999 when oil was $10 a barrel, I suggested that the price would ride fivefold to $50 a barrel in real terms over the next few years. This forecast was dismissed with incredulity at the time. Almost 10 years later with the price over $130 a barrel, my original forecast turned out to be rather timid - with mainstream commentators now forecasting $200 a barrel.
Soaring oil costs have pushed the gold/oil ratio to the lowest levels in decades
My forecast was based on an analysis of long term future supply-demand trends, combined with a study of ultra-long term commodity cycles.
What is striking about ultra-long term commodity cycles is how seemingly unrelated commodities appear to rise and fall together.
Price data shows that around 1999-2000, virtually every single commodity hit a significant low before turning up sharply. Nickel hit a low before proceeding to rise ten-fold in the period up to April 2007. Similarly copper also bottomed around this time before an eight-fold rise up to May 2006. Copper is once again challenging its all-time high and looks set to move into new high ground.
The reasons for this stellar performance are now well-trodden - the emergence of China, India and Russia - as major consumers of scarce and in some cases increasingly finite resources.
advertisement
This commodity super-cycle phenomenon shows no signs of abating. But to profit from it, investors need an understanding of the leads and lags within the commodity family to avoid being caught buying a particular commodity at a short-term peak in its price. I would be very wary about buying oil assets at present - simply because the price of oil in relationship to other raw materials is becoming very stretched.
Instead a study of the laggards in the raw material family is likely to prove more profitable and carry less risk.
Gold is one of the biggest laggards and the one that confuses investors most. Like other commodities it made its super-cycle low in 1999 at $250 an ounce - a level now etched on the record of Gordon Brown who made the calamitous decision to sell half the UK's gold reserves at the absolute bottom of the market. Unlike oil, copper, nickel and a host of other commodities which have seen rises of between eight and thirteen fold increases in the last ten years, gold has risen a mere three and a half times from its low. This puts gold and gold mining shares very firmly in the laggard category.
The sharp rise in oil and the relatively low rise in gold has pushed the gold/oil ratio to the lowest levels seen for decades. Either gold is incredibly cheap or oil is incredibly expensive on a relative basis.
Even if oil were to succumb to short term profit-taking, very few commentators think that it would fall back much below $80 a barrel - a level still eight times its low in 1999. (Gold hit a peak of $850 in 1980 and to equate that in real terms, ie adjusted for inflation, gold today would have to rise to around $2,500 an ounce at present. A rise of that magnitude would also restore the gold/oil ratio to its historic norm.)
A common reason offered for gold's relative underperformance is that it other commodities are driven solely by industrial demand whereas gold is subject to investor demand. This is only partially correct. Currently global jewellery demand of around 2,400 tonnes a year, roughly equates to global mine output so that this market is in balance. (Unlike oil, where a surplus of supply over consumption - as distinct from demand - has existed for several years.)
The swing factor that will affect the gold market is investor demand. Global investors can now buy exchange traded certificates (ETCs) and exchange traded funds (ETF) which alleviate the need to hold physical bullion in a bank vault.
The demand from this source has to be set against supply from the central banks who have been consistent sellers over the last few years. The balance between these two holds the key to if and when gold will catch up with the other commodities.
On a two to three year view the outlook looks increasingly bullish. Rising inflationary expectations around the world will lead to greater investor demand for inflation protected assets of which gold's 2000-year history in this space is unrivalled.
Previously it was the sale of gold by central banks that supplied the market and helped keep a lid on the gold price.
Gold jewellery demand is in balance
But this strategy is looking more and more like a busted flush. It is unlikely that the UK will be in a rush to sell any more of the Bank of England's gold, not that it has much left to sell. The same applies to many other central banks such as Holland, Belgium and Canada who have been long-term sellers of gold. They have run out of gold to sell. At the same time the central banks of the emergent economies, have become buyers.
Recent evidence shows that the central banks of Russia and Argentina are buyers. It is also rumoured but not confirmed that the central bank of China and other sovereign wealth funds are also buyers. As these possible central bank buyers have trillions more cash than the Western central banks have gold, it is very easy to envisage a scenario where the central banks in aggregate turn into net buyers - even if certain western central banks continue to sell.
And it is difficult to see where the extra supply would come from as mine output struggles to grow.
The gold market would then suffer a severe price squeeze similar to that already seen in other raw materials. Investors who subscribe to this view should look to either buying gold direct (via ETFs or ETCs ) or to possibly make even more money in the gold mining sector. It is our belief at Charteris that in the current environment every portfolio should have an exposure to gold.
We favour certain selected mining stocks over ETCs or ETFs as they traditionally provide a geared play on the metal itself. If our view is correct that gold will more than double then we would expect several of our favourite mining shares to rise five or tenfold in the years ahead.
Ian Williams is chief executive of Charteris Treasury Portfolio Managers
Friday, July 4, 2008
Today's and this week's trades
I've just posted today's trades and a summary of this weeks trades and verified that the link works. It looks like Wega dropped over 5 million shares this week through RBC and possibly another 1.5 million through Canaccord. At this rate we should be rid of them in another couple of weeks.
After the Q1 financials are posted (promised for no later than Monday), the MCTO should be lifted and there should be a frenzy of insider buying, right? Those shareholders that voted 60 million shares to keep PK should burn through the Wega shares in no time. It would take less than $1,000,000 (edit)at existing prices - PK could easily manage that herself.
Seriously it is going to take a long time to repair this damage. Some buyers are looking for a quick flip. There is one buyer that uses Woodstone that has bought 888,000 shares in the past 3 weeks at an average of 7.7 cents and has sold 731,000 shares at an average of 8.1 cents. When you add trading commissions, the profits are pretty slim. There will be others looking for a quick double or even a 50% gain is pretty good coin.
Any suggestions for the next poll?
After the Q1 financials are posted (promised for no later than Monday), the MCTO should be lifted and there should be a frenzy of insider buying, right? Those shareholders that voted 60 million shares to keep PK should burn through the Wega shares in no time. It would take less than $1,000,000 (edit)at existing prices - PK could easily manage that herself.
Seriously it is going to take a long time to repair this damage. Some buyers are looking for a quick flip. There is one buyer that uses Woodstone that has bought 888,000 shares in the past 3 weeks at an average of 7.7 cents and has sold 731,000 shares at an average of 8.1 cents. When you add trading commissions, the profits are pretty slim. There will be others looking for a quick double or even a 50% gain is pretty good coin.
Any suggestions for the next poll?
More on Accountability and Credibility
In my letter to the Board of Directors before the AGM, I outlined a few examples of the deception and lies told by Ms Kent through news releases and conference call comments over the past 2 years. Nothing has changed.
Here is more proof of how we have been deceived with respect to this year's financing activities:
March 20 news release:
The Company’s cash requirements for 2008 total $12 million. A sum of $9.3 million of this amount will be used for the ramp up of the Lamaque underground mining operation. On Friday March 14, the Company received Credit Committee approval for a $7.5 million leasing line for the Lamaque project. The Company intends to cover the balance of the shortfall, as well as capital requirements for San Juan and additional working capital with a $4 million private placement and the $2.0 million in proceeds from the recent sale of the SAG mill. The Company has retained First Canadian Securities to assist with the placement, which will be a combination of flow-through shares for Lamaque underground development and units for necessary working capital.
March 25 news release:
Capital requirements in 2008 will be covered by a $7.5 million leasing line and an additional $4.0 million equity placement. The Company is working with First Canadian Securities on the placement, which will be a combination of flow-through shares for Lamaque underground development and units for necessary working capital.
May 19 news release:
Century Mining Corporation (CMM: TSX-V) announces today that, subject to regulatory approval, it has closed a non-brokered private placement of 1,275,000 units at a subscription price of C$0.23 per unit for gross proceeds of C$293,250.
Century also announces that, subject to regulatory approval, it has closed a non-brokered private placement of 3,070,000 flow-through shares at a subscription price of C$0.25 per flow-through share for gross proceeds of C$767,500. This financing was previously announced on March 27, 2008.
In addition, the Company announced that it has closed a non-brokered private placement of 1,428,571 flow-through shares at $0.35 per flow-through share for gross proceeds of $500,000.
[Comment: $1.5 million raised out of the $4 million needed as identified above – still need another $2.5 million]
June 6 News Release:
Century Mining Corporation (CMM: TSX-V) announced that, subject to regulatory approval, it has arranged with a Swiss institution a C$6.0 million financing for its Lamaque Project.
As announced on May 12, 2008 Century is currently negotiating a significant project loan facility with Fortis for up to C$70 million. The financings announced today were arranged to provide Century with sufficient capital to continue production expansion at the Lamaque Mine until the proceeds from the project loan facility are available.
[Comment: This $6 million is $3.5 million more than was is needed for 2008 capital expenditures required for 2008 and to reach cash-flow neutral status in Q3 2008]
June 24 News Release:
To reach a positive cash flow status at Lamaque, the Company will need to secure bridge financing of up to $10 million, comprising debt and an equipment leasing package. The Company intends to replace this bridge debt facility with a senior debt facility that will allow the expansion to continue.
On June 5, 2008 the Company announced that it had secured a commitment for $6 million of this facility from MRI Trading AG.
[Comment: But according to the March 20 news release, the Company already has Credit Committee approval for a $7.5 million leasing line – so what’s the problem?]
We have recently announced bridge financing, and we are working to complete the due diligence required to enable completion of the Fortis senior debt facility which will fully fund the project.
[Comment: No indication here that more funding is needed besides the current bridge financing.]
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.
[Comment: And how did management plan to move this block of stock. The inference here is that if Wega would agree to sell its shares at the current 9 to 10 cents market price, management would arrange a block purchase. Wega is, as of July 4, selling its shares at 6 cents. If there was anyone whom management identified as a buyer of Wega shares at 9 cents, they would have bought Wega’s shares in the market at 6 cents.]
June 27 AGM:
Ms. Kent discloses that there is no leasing line.
2007 Year end Financials filed on June 24:
In December 2007, KCL West Holdings (Federal Equipment), a supplier of Komatsu parts and equipment to the Sigma-Lamaque Mine filed a suit against the Company in the Quebec Superior Court for approximately $1 million in accounts past due. On February 29, 2008, Century filed a defense against the amounts claimed by KCL West Holdings and filed a counter claim for approximately $250,000 demanding credit for parts returned, parts and components available for return, and damages to the Company’s equipment from improper parts supplied by KCL West Holdings. Since that time, the Komatsu Equipment leases have been assigned to KCL West Holdings. The Company is in the process of negotiating a global settlement with KCL West Holdings whereby the existing parts inventory would be credited to a negotiated settlement relieving the Company of all liability surrounding the open pit fleet and associated spares.
2007 Year end MD&A filed on June 24:
The Company is in negotiations to procure the financing needed to complete the developments at the Lamaque and San Juan mines so that a total of 40,000 ounces of gold can be produced this year. This forecast has been reduced from prior estimates because of the closure of the Company’s Sigma open pit operation and a slower-than expected ramp up of operations at Lamaque.
[Comment: The prior estimate of 55,000 oz did not include any production from the Sigma open pit which was shut down on November 5, 2007.]
July 2 News Release:
On June 5, 2008 the Company announced that it had secured a commitment for $6 million from MRI Trading AG. Century is also currently engaged in a due diligence process with Fortis Bank for a senior financing package of up to $70 million.
[Comment: Still no official notification that there is no $7.5 million equipment leasing line. The only persons that know about it are the handful of people that attended the postponed, relocated AGM, scheduled for 3PM on the Friday before the Canada Day long weekend.]
BTW, I intend to keep reminding the Board of their duty to shareholders by sending them a copy of this. If ever there is a Class Action lawsuit, they won't be able to plead ignorance.
Here is more proof of how we have been deceived with respect to this year's financing activities:
March 20 news release:
The Company’s cash requirements for 2008 total $12 million. A sum of $9.3 million of this amount will be used for the ramp up of the Lamaque underground mining operation. On Friday March 14, the Company received Credit Committee approval for a $7.5 million leasing line for the Lamaque project. The Company intends to cover the balance of the shortfall, as well as capital requirements for San Juan and additional working capital with a $4 million private placement and the $2.0 million in proceeds from the recent sale of the SAG mill. The Company has retained First Canadian Securities to assist with the placement, which will be a combination of flow-through shares for Lamaque underground development and units for necessary working capital.
March 25 news release:
Capital requirements in 2008 will be covered by a $7.5 million leasing line and an additional $4.0 million equity placement. The Company is working with First Canadian Securities on the placement, which will be a combination of flow-through shares for Lamaque underground development and units for necessary working capital.
May 19 news release:
Century Mining Corporation (CMM: TSX-V) announces today that, subject to regulatory approval, it has closed a non-brokered private placement of 1,275,000 units at a subscription price of C$0.23 per unit for gross proceeds of C$293,250.
Century also announces that, subject to regulatory approval, it has closed a non-brokered private placement of 3,070,000 flow-through shares at a subscription price of C$0.25 per flow-through share for gross proceeds of C$767,500. This financing was previously announced on March 27, 2008.
In addition, the Company announced that it has closed a non-brokered private placement of 1,428,571 flow-through shares at $0.35 per flow-through share for gross proceeds of $500,000.
[Comment: $1.5 million raised out of the $4 million needed as identified above – still need another $2.5 million]
June 6 News Release:
Century Mining Corporation (CMM: TSX-V) announced that, subject to regulatory approval, it has arranged with a Swiss institution a C$6.0 million financing for its Lamaque Project.
As announced on May 12, 2008 Century is currently negotiating a significant project loan facility with Fortis for up to C$70 million. The financings announced today were arranged to provide Century with sufficient capital to continue production expansion at the Lamaque Mine until the proceeds from the project loan facility are available.
[Comment: This $6 million is $3.5 million more than was is needed for 2008 capital expenditures required for 2008 and to reach cash-flow neutral status in Q3 2008]
June 24 News Release:
To reach a positive cash flow status at Lamaque, the Company will need to secure bridge financing of up to $10 million, comprising debt and an equipment leasing package. The Company intends to replace this bridge debt facility with a senior debt facility that will allow the expansion to continue.
On June 5, 2008 the Company announced that it had secured a commitment for $6 million of this facility from MRI Trading AG.
[Comment: But according to the March 20 news release, the Company already has Credit Committee approval for a $7.5 million leasing line – so what’s the problem?]
We have recently announced bridge financing, and we are working to complete the due diligence required to enable completion of the Fortis senior debt facility which will fully fund the project.
[Comment: No indication here that more funding is needed besides the current bridge financing.]
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.
[Comment: And how did management plan to move this block of stock. The inference here is that if Wega would agree to sell its shares at the current 9 to 10 cents market price, management would arrange a block purchase. Wega is, as of July 4, selling its shares at 6 cents. If there was anyone whom management identified as a buyer of Wega shares at 9 cents, they would have bought Wega’s shares in the market at 6 cents.]
June 27 AGM:
Ms. Kent discloses that there is no leasing line.
2007 Year end Financials filed on June 24:
In December 2007, KCL West Holdings (Federal Equipment), a supplier of Komatsu parts and equipment to the Sigma-Lamaque Mine filed a suit against the Company in the Quebec Superior Court for approximately $1 million in accounts past due. On February 29, 2008, Century filed a defense against the amounts claimed by KCL West Holdings and filed a counter claim for approximately $250,000 demanding credit for parts returned, parts and components available for return, and damages to the Company’s equipment from improper parts supplied by KCL West Holdings. Since that time, the Komatsu Equipment leases have been assigned to KCL West Holdings. The Company is in the process of negotiating a global settlement with KCL West Holdings whereby the existing parts inventory would be credited to a negotiated settlement relieving the Company of all liability surrounding the open pit fleet and associated spares.
2007 Year end MD&A filed on June 24:
The Company is in negotiations to procure the financing needed to complete the developments at the Lamaque and San Juan mines so that a total of 40,000 ounces of gold can be produced this year. This forecast has been reduced from prior estimates because of the closure of the Company’s Sigma open pit operation and a slower-than expected ramp up of operations at Lamaque.
[Comment: The prior estimate of 55,000 oz did not include any production from the Sigma open pit which was shut down on November 5, 2007.]
July 2 News Release:
On June 5, 2008 the Company announced that it had secured a commitment for $6 million from MRI Trading AG. Century is also currently engaged in a due diligence process with Fortis Bank for a senior financing package of up to $70 million.
[Comment: Still no official notification that there is no $7.5 million equipment leasing line. The only persons that know about it are the handful of people that attended the postponed, relocated AGM, scheduled for 3PM on the Friday before the Canada Day long weekend.]
BTW, I intend to keep reminding the Board of their duty to shareholders by sending them a copy of this. If ever there is a Class Action lawsuit, they won't be able to plead ignorance.
Ms Kent's interview with a business reporter in 2006
Below is the weblink to an interview which Ms Kent gave to a reporter of Business Edge magazine, a couple of years ago. It makes an interesting read (especially in light of the postings of Optimusprime on this Blog yesterday). Enjoy!
http://www.businessedge.ca/article.cfm/newsID/13340.cfm
http://www.businessedge.ca/article.cfm/newsID/13340.cfm
Accountability
Understanable, the production charts were removed the website presentation.
Here is a presentation note on San Juan:
"The San Juan Gold Mine in Peru is currently in production and expected to be producing at an annualized rate of 25,000 oz. Au/year by the end of 2008."
Flowing out of the AGM, tpd for both April and May, was poor, and was lower than Q1 results, due to focusing on the stopes during those months. However, the forecast for Jun to Dec sounded promising. They used 350 tpd, but how can one believe them right? They have lost all credibility. Nevertheless, let's go with it in order to keep moving here. Using 350 tpd, 5.5 g/t and 85% recovery rate, the results show as 4,735 quarterly ounces and 18,940 annualized ounces. If they manage to achieve that level in a future quarter (Q3, Q4 or otherwise), using $720 (hedged) gold price, $350 cash cost per oz and 4,735 quarterly produced ounces, San Juan would give them $1,750,000 in operating profits to work with each quarter.
Now, the presentation note states that they are expecting to have an annualized run rate of 25,000 by the end of 2008. As mentioned, they have no credibility that would support this, but like also said, let's keep moving. It would take a tpd of 462 (with 5.5 g/t and 85% recovery rate) to produce 25,000 annualized ounces (6,250 quarterly). However, if it occurs it will generate $3,690,000 in quarterly operating profits (using a spot gold prrice of $940 and cash cost per oz of $350).
Here is there presentation note on Lamaque:
"The Company’s Lamaque Mine in Quebec is scheduled to recommence mining operations in November 2008, upon completion of development work and bank financing due diligence activities."
They are looking at re-start in Nov'08, about 5 months from now. I imagine it's going to take a couple of months to crank things up again. In anticipation of the Fortis draw down being approved in November, they need to begin making phone calls in October to organize their workers.
THEY CAN'T FLIPPING MESS THIS UP!!! Even if the HR person, Margaret Kent and each BOD member has to call every single employee every single month for the next 5 months just to tell them that Century Mining is thinking about them, then that's what they have to do. As far as I can see, the leaders of this company do not show even basic respect and dignity to their shareholders, I can only imagine how they treat their employees. THAT MUST CHANGE IF THEY INTEND TO BE SUCCESSFUL IN BRINGING BACK OUR EMPLOYEES.
Also, planning will be essential for the re-start of Lamaque, otherwise the start up will fail again, like every single other start up operation in the entire history of Century Mining. Move McNutt aside, or whomever have been responsible for the other failures. They need to do their homework, put together a solid plan, and then execute.
THE CULTURE NEEDS TO BE CHANGED!!! Failure can no longer be the norm. Accountability has to be firmly embedded within the culture, and it starts at the top. It starts with the BOD. In the past, (IMO) the BOD members have been as much to blame as the CEO, due to not holding the CEO accountable and also failure to take decisive actions. The culture must change immediately if this company is to succeed.
Unfortunately, (IMO) Century's shareholder base is fractured, fragmented and fragile (suicidal in one case, IMO). The company does not have any strong institutional sharesholders that have demonstrated abilities to bring the shareholder base together, in order to guide the company in a direction that is beneficial to all shareholders. Rather, Century's largest shareholder has demonstrated only self serving interests, which have all been severely detrimental to the rest of the shareholder base. If Century had more ideal (significant) institutional investors then Century Mining would not be a $.06 stock today (in a $940 gold price environment) - Century's Board of Directors would be held fully (and decisively) accountable.
Whether it's at the very top or the very bottom, everything starts and ends with accountability.
Here is a presentation note on San Juan:
"The San Juan Gold Mine in Peru is currently in production and expected to be producing at an annualized rate of 25,000 oz. Au/year by the end of 2008."
Flowing out of the AGM, tpd for both April and May, was poor, and was lower than Q1 results, due to focusing on the stopes during those months. However, the forecast for Jun to Dec sounded promising. They used 350 tpd, but how can one believe them right? They have lost all credibility. Nevertheless, let's go with it in order to keep moving here. Using 350 tpd, 5.5 g/t and 85% recovery rate, the results show as 4,735 quarterly ounces and 18,940 annualized ounces. If they manage to achieve that level in a future quarter (Q3, Q4 or otherwise), using $720 (hedged) gold price, $350 cash cost per oz and 4,735 quarterly produced ounces, San Juan would give them $1,750,000 in operating profits to work with each quarter.
Now, the presentation note states that they are expecting to have an annualized run rate of 25,000 by the end of 2008. As mentioned, they have no credibility that would support this, but like also said, let's keep moving. It would take a tpd of 462 (with 5.5 g/t and 85% recovery rate) to produce 25,000 annualized ounces (6,250 quarterly). However, if it occurs it will generate $3,690,000 in quarterly operating profits (using a spot gold prrice of $940 and cash cost per oz of $350).
Here is there presentation note on Lamaque:
"The Company’s Lamaque Mine in Quebec is scheduled to recommence mining operations in November 2008, upon completion of development work and bank financing due diligence activities."
They are looking at re-start in Nov'08, about 5 months from now. I imagine it's going to take a couple of months to crank things up again. In anticipation of the Fortis draw down being approved in November, they need to begin making phone calls in October to organize their workers.
THEY CAN'T FLIPPING MESS THIS UP!!! Even if the HR person, Margaret Kent and each BOD member has to call every single employee every single month for the next 5 months just to tell them that Century Mining is thinking about them, then that's what they have to do. As far as I can see, the leaders of this company do not show even basic respect and dignity to their shareholders, I can only imagine how they treat their employees. THAT MUST CHANGE IF THEY INTEND TO BE SUCCESSFUL IN BRINGING BACK OUR EMPLOYEES.
Also, planning will be essential for the re-start of Lamaque, otherwise the start up will fail again, like every single other start up operation in the entire history of Century Mining. Move McNutt aside, or whomever have been responsible for the other failures. They need to do their homework, put together a solid plan, and then execute.
THE CULTURE NEEDS TO BE CHANGED!!! Failure can no longer be the norm. Accountability has to be firmly embedded within the culture, and it starts at the top. It starts with the BOD. In the past, (IMO) the BOD members have been as much to blame as the CEO, due to not holding the CEO accountable and also failure to take decisive actions. The culture must change immediately if this company is to succeed.
Unfortunately, (IMO) Century's shareholder base is fractured, fragmented and fragile (suicidal in one case, IMO). The company does not have any strong institutional sharesholders that have demonstrated abilities to bring the shareholder base together, in order to guide the company in a direction that is beneficial to all shareholders. Rather, Century's largest shareholder has demonstrated only self serving interests, which have all been severely detrimental to the rest of the shareholder base. If Century had more ideal (significant) institutional investors then Century Mining would not be a $.06 stock today (in a $940 gold price environment) - Century's Board of Directors would be held fully (and decisively) accountable.
Whether it's at the very top or the very bottom, everything starts and ends with accountability.
Thursday, July 3, 2008
Wega shares analysis (blinded version)
Wega started with 25,557,646 shares
They sold it down to 20,355,146 shares at Jun 19'08
RBC sales from Jun 19'08 to Jul 2'08 seemed slow, so let's assumed it only moved their balance down to 20,000,000 shares even
I don't have a breakdown of today's 5,300,500 shares traded as yet, but let's blindly assumed that 4,000,000 of those were from RBC/Wega (until we get better info)
It would then mean that Wega's position is now down to 16,000,000 shares (63% of their original position)
Now, here is something else to thing about. Canaccord burst onto the scene at the beginning of the Jun 9'08 week, and RBC for the most part disappeared into the background (until today of course). From Jun 9'08 to Jul 2'08 (prior to today) there were probably 13M shares traded, with RBC only playing a minimal role. Of the 13M shares (during that time period), my guess is that Canaccord sold the majority of those shares. I wouldn't be surprised if Canaccord sold 7 - 10M shares during that specific period.
The question is who sold those 7-10M shares through Canaccord? It doesn't appear to be either Scion or the other major shareholder (the one that joined Century via the Sept'07 financing). Also, Scion hasn't filed anything on insider reports during this period. Wega appears to be the only remaining Century shareholder with this type of share count position.
So, is Wega the seller of those 7-10M Canaccord sales? It sure looks like it. If so, then how are they bypassing/delaying filing requirements? One person made the suggestion to me that they could be borrowing through Canaccord to short the stock (the shares wouldn't belong to them so they wouldn't have to update insider reports, unlike their RBC sales). At the end of the process they wouldn't have to buy back the Canaccord shares on the open market for repayment because they already have plenty of replacement shares. Again, at the end of the process, Wega can just give back the borrowed shares to Canaccord (from their own pocket) and at that point they can update the insider transactions report (long after the actual sale took place on the market).
Anyway, I really have no idea who is behind the Canaccord sales.
However, if it happens to be Wega, then it might be possible that the true Wega share count position is not 16,000,000, but rather maybe in the 6,000,000 to 9,000,000 range.
Though, we should probably stick to the 16,000,000, as we have no firm info to confirm otherwise.
They sold it down to 20,355,146 shares at Jun 19'08
RBC sales from Jun 19'08 to Jul 2'08 seemed slow, so let's assumed it only moved their balance down to 20,000,000 shares even
I don't have a breakdown of today's 5,300,500 shares traded as yet, but let's blindly assumed that 4,000,000 of those were from RBC/Wega (until we get better info)
It would then mean that Wega's position is now down to 16,000,000 shares (63% of their original position)
Now, here is something else to thing about. Canaccord burst onto the scene at the beginning of the Jun 9'08 week, and RBC for the most part disappeared into the background (until today of course). From Jun 9'08 to Jul 2'08 (prior to today) there were probably 13M shares traded, with RBC only playing a minimal role. Of the 13M shares (during that time period), my guess is that Canaccord sold the majority of those shares. I wouldn't be surprised if Canaccord sold 7 - 10M shares during that specific period.
The question is who sold those 7-10M shares through Canaccord? It doesn't appear to be either Scion or the other major shareholder (the one that joined Century via the Sept'07 financing). Also, Scion hasn't filed anything on insider reports during this period. Wega appears to be the only remaining Century shareholder with this type of share count position.
So, is Wega the seller of those 7-10M Canaccord sales? It sure looks like it. If so, then how are they bypassing/delaying filing requirements? One person made the suggestion to me that they could be borrowing through Canaccord to short the stock (the shares wouldn't belong to them so they wouldn't have to update insider reports, unlike their RBC sales). At the end of the process they wouldn't have to buy back the Canaccord shares on the open market for repayment because they already have plenty of replacement shares. Again, at the end of the process, Wega can just give back the borrowed shares to Canaccord (from their own pocket) and at that point they can update the insider transactions report (long after the actual sale took place on the market).
Anyway, I really have no idea who is behind the Canaccord sales.
However, if it happens to be Wega, then it might be possible that the true Wega share count position is not 16,000,000, but rather maybe in the 6,000,000 to 9,000,000 range.
Though, we should probably stick to the 16,000,000, as we have no firm info to confirm otherwise.
E-mail for Mark A. Lettes (Independent Director)
I cannot guarantee that his e-mail address is 100% accurate, but it should be fine. For ease of access, I have also included the e-mails for the other 5 directors (including the other 2 independent directors).
1) Mark A. Lettes (Independent Director):
letswimmer@msn.com
2) Ricardo M. Campoy (Independent Director):
rmcampoy@gmail.com
3) Allen V. Ambrose (Independent Director):
allen@minandes.com
4) William J.V. Sheridan (Director)
wsheridan@langmichener.ca
5) Ross F. Burns (Director)
burns_r@msn.com
6) Margaret K. Kent (Director)
mkent@centurymining.com
1) Mark A. Lettes (Independent Director):
letswimmer@msn.com
2) Ricardo M. Campoy (Independent Director):
rmcampoy@gmail.com
3) Allen V. Ambrose (Independent Director):
allen@minandes.com
4) William J.V. Sheridan (Director)
wsheridan@langmichener.ca
5) Ross F. Burns (Director)
burns_r@msn.com
6) Margaret K. Kent (Director)
mkent@centurymining.com
Wednesday, July 2, 2008
CMM Announces Temporary Curtailment of Lamaque Underground Production
- Company to continue development work, further resource upgrades and focus on achieving senior debt financing draw down -
BLAINE, WA, July 2 /CNW/ - Century Mining Corporation (CMM: TSX-V) today announced that it will temporarily curtail production at the Company's Lamaque Underground Mine, located in Val d'Or Quebec. The Company also announced that mining operations at the San Juan Gold Mine in Peru will continue as normal.
Investor Conference Call
------------------------
Management will host a conference call after the 2008 first quarter financial results are released to discuss the details of the financial results and the future strategies at its operations in Québec and Peru. The date and other details of the conference call will be included in the first quarter financial results announcement.
Overview
--------
Explaining today's decision, the Company cited economic and timing issues that favor a temporary curtailment of underground production. The Company stressed, however, that the operation will continue to remain open. Century expects to complete necessary preparations and close the financing in order to commence ramp up of the underground mining operations in November 2008.
Purpose of Curtailment
----------------------
The Company's Board of Directors, after carefully evaluating current operations and near-term financial commitments and capital requirements, determined that there are significant benefits to curtailing production for a period of up to 6 months. During this period, the Company will utilize funds procured through the recently announced financings to fully focus the key staff on mine development, mine planning, permitting activities and financing due diligence activities. Century recommenced development at the Lamaque underground mine in May of 2007 and in parallel has undertaken a substantial data compilation program that has resulted in a NI 43-101 compliant technical report including 1.13 million ounces of gold reserves, 624,000 ounces of measured and indicated resources and 2.83 million ounces in the inferred resource category. During the interim curtailment, Century will maintain its key staff at the Lamaque Complex.
Financing
---------
On June 5, 2008 the Company announced that it had secured a commitment for $6 million from MRI Trading AG. Century is also currently engaged in a due diligence process with Fortis Bank for a senior financing package of up to $70 million. Both of these financings are expected to proceed as planned during the interim period. Funds procured through the MRI facility will be used for the aforementioned due diligence activities, which will lead to the Company's ability to draw down on the Fortis facility.
Margaret Kent, President & CEO, commented: "The decision to implement a curtailment of production during this interim period for Lamaque was carefully considered by management and the Board of Directors based on all available financial and operational information. Underground mining at Lamaque carried out since May of last year has provided a thorough understanding of the mine and the associated operating costs. This information was needed to confirm previously reported feasibility numbers and provide the backup necessary for the current banking due diligence processes. The underground operation was operating at about 20% of optimum capacity, and the lack of necessary bridge financing to increase production has resulted in continued operating losses.
By temporarily curtailing production the Company will be able to allocate all funding and dedicate all management resources to mine development so that full-scale production may begin immediately upon draw down of the previously announced Fortis Bank debt financing. Management believes that this plan will ensure the long-term success of the Lamaque Underground Mine and minimize further dilution to the Company's shareholders. During the interim period Century will work closely with the Company's financial backers and all other stakeholders to ensure a smooth transition from development to the restart of full-scale mining operations. The project has a 10 year life based on mineable reserves and it is expected that the overall mine life will approach 20 plus years, based on the known resource profile. A six month curtailment of production is a positive step toward achieving our long-term goals."
BLAINE, WA, July 2 /CNW/ - Century Mining Corporation (CMM: TSX-V) today announced that it will temporarily curtail production at the Company's Lamaque Underground Mine, located in Val d'Or Quebec. The Company also announced that mining operations at the San Juan Gold Mine in Peru will continue as normal.
Investor Conference Call
------------------------
Management will host a conference call after the 2008 first quarter financial results are released to discuss the details of the financial results and the future strategies at its operations in Québec and Peru. The date and other details of the conference call will be included in the first quarter financial results announcement.
Overview
--------
Explaining today's decision, the Company cited economic and timing issues that favor a temporary curtailment of underground production. The Company stressed, however, that the operation will continue to remain open. Century expects to complete necessary preparations and close the financing in order to commence ramp up of the underground mining operations in November 2008.
Purpose of Curtailment
----------------------
The Company's Board of Directors, after carefully evaluating current operations and near-term financial commitments and capital requirements, determined that there are significant benefits to curtailing production for a period of up to 6 months. During this period, the Company will utilize funds procured through the recently announced financings to fully focus the key staff on mine development, mine planning, permitting activities and financing due diligence activities. Century recommenced development at the Lamaque underground mine in May of 2007 and in parallel has undertaken a substantial data compilation program that has resulted in a NI 43-101 compliant technical report including 1.13 million ounces of gold reserves, 624,000 ounces of measured and indicated resources and 2.83 million ounces in the inferred resource category. During the interim curtailment, Century will maintain its key staff at the Lamaque Complex.
Financing
---------
On June 5, 2008 the Company announced that it had secured a commitment for $6 million from MRI Trading AG. Century is also currently engaged in a due diligence process with Fortis Bank for a senior financing package of up to $70 million. Both of these financings are expected to proceed as planned during the interim period. Funds procured through the MRI facility will be used for the aforementioned due diligence activities, which will lead to the Company's ability to draw down on the Fortis facility.
Margaret Kent, President & CEO, commented: "The decision to implement a curtailment of production during this interim period for Lamaque was carefully considered by management and the Board of Directors based on all available financial and operational information. Underground mining at Lamaque carried out since May of last year has provided a thorough understanding of the mine and the associated operating costs. This information was needed to confirm previously reported feasibility numbers and provide the backup necessary for the current banking due diligence processes. The underground operation was operating at about 20% of optimum capacity, and the lack of necessary bridge financing to increase production has resulted in continued operating losses.
By temporarily curtailing production the Company will be able to allocate all funding and dedicate all management resources to mine development so that full-scale production may begin immediately upon draw down of the previously announced Fortis Bank debt financing. Management believes that this plan will ensure the long-term success of the Lamaque Underground Mine and minimize further dilution to the Company's shareholders. During the interim period Century will work closely with the Company's financial backers and all other stakeholders to ensure a smooth transition from development to the restart of full-scale mining operations. The project has a 10 year life based on mineable reserves and it is expected that the overall mine life will approach 20 plus years, based on the known resource profile. A six month curtailment of production is a positive step toward achieving our long-term goals."
Subscribe to:
Posts (Atom)