Welcome to the Century Mining Blog.
This blog is open for viewing to the general public, but posting is restricted to Blog Members. If you wish to become a Blog Member send an email request to centurycarib@gmail.com.
Comments by the viewing public has been reinstated.
Check out the Information Links down the right-hand side.
The usual suspects maintain their roles as the largest sellers. The 2010 Trading summary (link on right) has been updated for April and 2010 and Canaccord and Anonymous continue to be the biggest net sellers.
Of note, as of April 30th no reporting on SEDI of Mr McNutt selling his 200,000 shares (and thus cashing in on his $80,000 investment in the company). He exercised his options on the same day as Peggy (April 18th). So far, it`s an encouraging development. I guess we`ll have to wait see if it continues.
I talked to Peter Ball yesterday at 6pm EST and he thought the financials would be out before 11pm that night. Well, he is only as good as his info. I like Peter and I think he is doing a great job but CMM still has to deliver. There was an issue here with delivering this on time. Peter alluded to the CFO being new and very thorough and the auditors going over everything. Obviously, something was not passing mustard so instead of putting out financials with some doubts, they have decided to delay those financials. I hope they are burning the midnight oil all weekend to get this done pre market on Monday. More delay than this would hurt our SP and reputation that we are trying really hard to rebuild! Peter did state that there was no surprise in the financials, that everything was positive. Still, I will feel better when I can read them myself!
I`m probably more frustrated than anyone else, having seen the company struggle with delivering financials in a timely manner on many occasions.
Having said that, we should probably go easy on them this time around. I think this time is very unique in the company`s life. Ultimately, the final accountability is with Peggy. Now, if Peggy has been busy with 95% her energies going towards dilivering Lamaque and only 5% of her time managing the audit process at the executive level then I can live with that.
If we don`t deliver on Lamaque we will have serious issues to overcome. If we are late with audited Y/E financials then we get our hands slapped by the BC exchange (perhaps blackmarked and a much tougher time getting upgraded to the TSX big board) and maybe we take a bit of a temporary hit on share price, but ultimately we will bounce back and with serious profits from operations.
Yes, the lessor of 2 evils. I would rather have Peggy, Finskiy, Scola and the rest of the executive team focus 95% of their brain power on deliving Lamaque.
Having said that, my guess is that they are probably going back and forth on how to treat the financings and timing of the balance sheet clean up. The prepaid financing was especially a unique type of financing. Also, the closing of the financings and the retirement of all of those balance sheet items was awkward, being January 4th (Dec. 31`09 close might have been much more simple, as was planned). Are they allowed to process everything in 2009 and show a nicely cleaned up balance sheet or are they left explaining a messy YE balance then processing everything in 2010.
With regards to the prepaid, they got $539 per oz, plus they might get $88, which adds to $627. The gold price is currently $1,165, representing a difference of $538 per oz or $32.8M based current gold price. How do they treat that and when do they begin recognizing it as an extraordinary item loss (below the operating line) in the income statement. Do they treat it as a financing cost up front and book some of in the YE statements (assuming they show the closing in 2009 of course) and then reverse a bit of it each year if the gold price falls below the price used in the calculation (i.e. $1,165). That doesn`t make a lot of sense, but these are the type of questions (pushbacks) from the auditors in an effort to fully understand the nature of the financing. The auditors will want to dot all of the i`s and cross all of the t`s, especially with such unique financing arrangement. However, it makes more sense for them to amortize the gold price loss on those 61,183 prepaid ounces over the 5 year period as oppose to recognizing it as an up front up financing charge.
By the way, I took a quick glance at Luna Gold`s YE statements and I do not see a large up front financing charge for their prepaid ounces. As you may recall, they had a similar prepaid gold sales arrangement as Century.
Hopefully they will be in a position to file before Monday morning. It`s not clear (or I don`t remember) if the BOD needs to approve final package first (after the auditors sign off) and give their blessings to Peggy and the CFO to sign off on the company`s behalf. Either way, I`m sure the BOD members will want to be kept up to speed as they make the final decisions for the company and they are ultimately responsible for the performance of the company. Hopefully it`s a situation where everyone involved (including the auditors) is working around the clock on the weekend to ensure statements are filed before Monday morning comes around.
The usual suspects maintain their roles as the largest sellers. The 2010 Trading summary (link on right) has been updated for April and 2010 and Canaccord and Anonymous continue to be the biggest net sellers.
5 comments:
Of note, as of April 30th no reporting on SEDI of Mr McNutt selling his 200,000 shares (and thus cashing in on his $80,000 investment in the company). He exercised his options on the same day as Peggy (April 18th). So far, it`s an encouraging development. I guess we`ll have to wait see if it continues.
What happened to the financials? Anyone know?
I talked to Peter Ball yesterday at 6pm EST and he thought the financials would be out before 11pm that night. Well, he is only as good as his info. I like Peter and I think he is doing a great job but CMM still has to deliver. There was an issue here with delivering this on time. Peter alluded to the CFO being new and very thorough and the auditors going over everything. Obviously, something was not passing mustard so instead of putting out financials with some doubts, they have decided to delay those financials. I hope they are burning the midnight oil all weekend to get this done pre market on Monday. More delay than this would hurt our SP and reputation that we are trying really hard to rebuild! Peter did state that there was no surprise in the financials, that everything was positive. Still, I will feel better when I can read them myself!
Thanks glorieux for the info. I really really hope they make it before market opens.
Thanks for the update Glorieux!
I`m probably more frustrated than anyone else, having seen the company struggle with delivering financials in a timely manner on many occasions.
Having said that, we should probably go easy on them this time around. I think this time is very unique in the company`s life. Ultimately, the final accountability is with Peggy. Now, if Peggy has been busy with 95% her energies going towards dilivering Lamaque and only 5% of her time managing the audit process at the executive level then I can live with that.
If we don`t deliver on Lamaque we will have serious issues to overcome. If we are late with audited Y/E financials then we get our hands slapped by the BC exchange (perhaps blackmarked and a much tougher time getting upgraded to the TSX big board) and maybe we take a bit of a temporary hit on share price, but ultimately we will bounce back and with serious profits from operations.
Yes, the lessor of 2 evils. I would rather have Peggy, Finskiy, Scola and the rest of the executive team focus 95% of their brain power on deliving Lamaque.
Having said that, my guess is that they are probably going back and forth on how to treat the financings and timing of the balance sheet clean up. The prepaid financing was especially a unique type of financing. Also, the closing of the financings and the retirement of all of those balance sheet items was awkward, being January 4th (Dec. 31`09 close might have been much more simple, as was planned). Are they allowed to process everything in 2009 and show a nicely cleaned up balance sheet or are they left explaining a messy YE balance then processing everything in 2010.
With regards to the prepaid, they got $539 per oz, plus they might get $88, which adds to $627. The gold price is currently $1,165, representing a difference of $538 per oz or $32.8M based current gold price. How do they treat that and when do they begin recognizing it as an extraordinary item loss (below the operating line) in the income statement. Do they treat it as a financing cost up front and book some of in the YE statements (assuming they show the closing in 2009 of course) and then reverse a bit of it each year if the gold price falls below the price used in the calculation (i.e. $1,165). That doesn`t make a lot of sense, but these are the type of questions (pushbacks) from the auditors in an effort to fully understand the nature of the financing. The auditors will want to dot all of the i`s and cross all of the t`s, especially with such unique financing arrangement. However, it makes more sense for them to amortize the gold price loss on those 61,183 prepaid ounces over the 5 year period as oppose to recognizing it as an up front up financing charge.
By the way, I took a quick glance at Luna Gold`s YE statements and I do not see a large up front financing charge for their prepaid ounces. As you may recall, they had a similar prepaid gold sales arrangement as Century.
Hopefully they will be in a position to file before Monday morning. It`s not clear (or I don`t remember) if the BOD needs to approve final package first (after the auditors sign off) and give their blessings to Peggy and the CFO to sign off on the company`s behalf. Either way, I`m sure the BOD members will want to be kept up to speed as they make the final decisions for the company and they are ultimately responsible for the performance of the company. Hopefully it`s a situation where everyone involved (including the auditors) is working around the clock on the weekend to ensure statements are filed before Monday morning comes around.
Post a Comment