1) Someone on Stockhouse wrote that they received an update from analyst Victor Goncalves` Equities and Economics Report. The Stockhouse person says that Mr. Goncalves has set a target price of $1.50 for Century. I have no way of verifying if this is true as I have not seen a copy of the report.
My own thinking is that any target price between $1.00 and $2.00 per share is likely reasonable for down the road, if all goes well with production ramp up of course. This is based on Century`s plan to ramp up to 1,200 tpd in 2010 and 2,000 tpd in 2011. It is also based on the market cap and enterprise value for producing companies with this type of successful production profile. If Century should happen to deliver over and above (i.e. move a big chunk of the inferred ounces into P&P Reserves and deliver 110,000 annual production ounces at Lamaque far ahead of schedule and demonstrate consistent sub US$450 cash cost per oz at Lamaque) then the sky is the limit for share price. The bottom line is they have to deliver regardless of target price of $.50 or $1.00 or $1.50 or $2.00 or beyond. Talk is cheap and everyone knows that.
2) Someone from Agoracom posted a new article from Norther Miner today. Thanks to that agoracom blogger for posting it!
The article is good, but I have a couple of notes/corrections. I don`t think the Northern Miner writer realized that it is Finskiy and Scola with the large equity position in Century (not Deutsche Bank). Also, I understand that the writer was trying to make the point of tremendous unexplored exploration upside still remain on the Lamaque side of the mine. However, in his attempt in doing so I think he minimized/discounted the easy ore feed potential of the Sigma side too much. For example, the Bedard Dyke and the North Wall ounces are both located on the Sigma side, and within 1000 ft of the surface - they will act as primary feed sources to drive our 90,000 annual Lamaque production ounces over the next 3 years and beyond.
Here is the link to the article posted on agoracom:
http://agoracom.com/ir/CenturyMining/forums/discussion/topics/410465-good-article-from-northern-miner-valley-of-gold/messages/1352590#message
1 comment:
Production5, your postings, as usual, are most valuable.
Concerning valuations for CMM, about ten days ago, Glorieux called attention to a Blog by Dennis Boyko (on goldminingvaluations.com). Mr Boyko values CMM at over $4.00 (based on published resource estimates, and other information). That would make CMM a "ten-bagger"!! He also made a "wild speculation" about why Aggnico Eagle may want to acquire CMM.
According to your post, Victor Goncalves thinks CMM is worth $1.50. Even that is nearly four times more than what the stock is trading today. The reason may be due to the "PK factor" (or Management factor, as Carib pointed out on this Blog). Perhaps the fireworks for the stock will start after the pouring of that first gold bar soon!
bigjohn37
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