Monday, May 18, 2009

3 mth libor - May 18'09

down to 0.785%

3 comments:

rock3030 said...

Seems as though the two weeks for submission of financials is coming to an end...Century has said "two weeks" and we all wish Peggy would make realistic timelines...but does anybody know exactly how long the extension was?

production05 said...

Given that the 2 week dafault update has not been issued as yet, it likely means that Century is attempting to finalize the Y/E statements at the 11th hr (and bring closure without dragging the situation on with default update notice). With it being the 19th today, they are probably at the edges of the window, before they need to issue the update (if they can't close before then).

By the way, 3 mth libor was down to 0.752% today. The lowering of benchmark lending rates (with each passing day) bodes well for us. With each passing day, our $65M terms should look more and more attractive to the potential lenders, relative to what they can get in the market place. If the lenders liked our terms a couple of months ago (when global benchmark rates were much higher) then no reason they shouldn't be even more attracted to our terms today.

production05 said...

I am not too concerned with filing of the Y/E '08 financials, as it will likely be filed soon enough once auditor approval has been gained ('08 audited statements should me simple and clean - all of the complex issues were fully addessed and closed off in the '07 audited statements).

It is the timing of the Q1'09 financials that I have been mainly concerned about since the default notice came out on April 30th, as the Q1 statements cannot be prepared until Y/E '08 statements have been completed and rolled over to '09.

Of course, finalizing the Q1'09 statements should be like 30 times simplier than audited Y/E statements:

*Q1 is not audited

*accruals can be set up for revenues and expenses based on best guesses (if actuals are not processed as yet), knowing that there are 3 more quarters to make minor adjustments before the books are closed off for the fiscal year

Ideally, 10 days should still be sufficient to complete no frills Q1'09 statements (once Y/E'08 is done), thus meeting the May 31st deadline. If a few extra days are required for Q1 statements then it would really be a non-issue. My guess is that the BCSC fully understand the process - Q1 cannot be worked on until the Y/E delayed statements are filed (they see these challenges with with every other small cap companies that get delayed with the Y/E process).

I just think that Century is a small enough company (with currently only one small producing mine) and its business type is simple enough that filing interim (non-audited) Q1 financials shouldn't be an issue for May 31st. Once the Y/E statements are out of the way, Q1 preparation is completely within Century's control - auditor involvement is not mandatory. If Century's management and staff truly want to establish professionalism, and break away from this ongoing tradition of COMPLETE EMBARRASSMENT with regards to these types of things, then I would recommend that they all burn the midnight all to ensure that the Q1 statements are filed on time.