This was the BNN video from last December (for anyone who hasn`t seen as yet). It`s with Mark Lackey who is the VP of strategies at Hampton Securities. It`s only 30 seconds but his comments were genuine. He backed up his views by purchasing over 500,000 Century shares with his own personal money. He is probably up about 75% (at least) on this investment. He talks Century at about the 5.15 mark of the video.
Carib, we now have 2 analyst videos on Century. Not sure if it`s worth having a video area on the blog page to link these 2 analyst videos (perhaps more to come). They are not posted on the Century site so this can act as a compliment for people performing DD on Century.
http://watch.bnn.ca/clip247949#clip247949
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This is just a small note.
We only have to hand over 200 ounces per month to Deutsche Bank for the first 6 months, towards the prepaid gold sales program - basically only 600 ounces in Q1 and 600 ounces in Q2, or 1,200 ounces for the 6 month period.
Those ounces are likely being delivered from our San Juan operation. San Juan can easily handle it given that we generate 4,700 ounces out of San Juan per quarter (4,700 - 600 still leaves 4,100 ounces available for us in Q1, impact from the 1 week strike aside of course.
Ounces wise, what is interesting is we had 2,015 unfinished Lamaque ounces remaining in inventory at end of Q3`09. My understanding is that we were not able to finish the ounces off without Lamaque processing operation being back up and running again.
As such, we should be able to finish off those 2,015 ounces in the near future. At today`s gold price, that`s worth $2.3M cash to us.
That might be enough money to cover off Century`s Corporate G&A costs for Q1 and Q2, while allowing the financing dollars to go fully towards ramping up Lamaque.
Also, with each passing day our stockpile ore is getting higher. We probably have about 9,000 tonnes by now (March and 9 days of April). That will probably translate to about 1,300 ounces ($1.3M in gross revenue) once eventually processed, assuming a 95% recovery rate and 4.76 g/t grade of course).
In addition, as we know, we may have a chance to pull $5M from the $15M sitting in escrow (perhaps late May or early June).
Furthermore, there is the $15M Finskiy contingency. Finskiy`s warrants are $.23 above being in the money. It`s an extra source for quick cash, if the need was to arise.
And, of course, with a 70,000 ounce run rate production success (for 4 consecutive months), we will be able to access $8.5M (of the remaining $10M escrow balance) later this year.
We should also not rule out capitalized operating profits for the last 6 months of this year. Yes, we will not show surpluses as profits in the Income Statement (we will offset any surpluses at Lamaque against development costs within the Balance Sheet in 2010 or until commercial production has been declared). However, don`t get that confused with available cash. If we are running 1200 - 1400 tpd (at 95% recovery and 4.76 g/t) then ounces produced will likely generate some really good surplus cash over those last 6 months of 2010. As current gold prices, we can easily see $10M+ (Lamaque only) in surplus cash from production ounces come available to us (even after removing ounces towards the prepaid gold sales program).
The key to everything is a smooth mill start up and continuous success with mining ore to the 1200+ tpd level. It`s looking very good right now.
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