Kinross's acquisition of Underworld Resources is valued at $139.2 million. Underworld is an exploration company with 0 reserves, 1 million ounces indicated resources and 400,000 inferred resource ounces. They have no operating mines nor even a feasibility study for their properties.
Century has 1.14 million ounces of reserves, 1.28 million ounces of measured and indicated resources and 3.13 million inferred resource ounces at Lamaque alone plus all of the operating infrastructure. They also have a profitable operating mine in Peru producing about 20,000 oz/yr.
Question: How can Century have a market cap of $119 million?
Answer: Management
Our share price continues to be a cruel joke. Where is the new Chairman we were promised?
2 comments:
When I visited CMM at the PDAC, there was a senior mining analyst (it was on his name tag) who stated that "CMM would shock the market" when it starts pouring gold.
He said that BMO is currently not covering CMM but that he personally had a big position and expects good things from CMM.
They currently state that production at Lamaque will start in 79 days, but from what I heard, this will be closer to 50 days and will catch the market by surprise.
yes, this time frame falls in line with what I heard from Peter Ball. Definitely there was a flavour of underpromise and over deliver tone in our conversation. I know CMM is pedal to the metal to get the mill working at 1200 tpd for 14 consective days in May as that will meets their requirements for the $ 5M from Deutsche Bank.
Post a Comment