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.