Thursday, May 27, 2010

Today's Trading Summary

Today's trading was dominated by Jitney and BMO on the sell side.  With the falling share price we also got some selling from suspected former creditors that received shares for debt - selling through Instinet and Anonymous.  Yesterday Caldwell dumped an additional 270,000 shares in a single trade at 61 cents.  I think releasing the Q1 financials today stemmed the tide as there was probably a fear that if these were late, then the stock and management credibility would take another hit.

Q1 Financials

BLAINE, WASHINGTON--(Marketwire - May 27, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to announce its financial and operating results for the first quarter ended March 31, 2010.


Q1 2010 highlights versus historical:

Quarter Ended Year Ended Quarter Ended
Mar 31, 2010 Dec 31, 2009 Mar 31, 2009

Cash & Restricted Cash $ 17,008,056 $ 32,595,872 $ 2,104,975
Working Capital $ 8,215,944 $ 18,429,170 ($13,188,514)
Total Assets $ 128,166,408 $132,250,651 $ 92,632,415
Long Term Debt & Deferred Revenue $ 32,331,495 $ 32,553,554 $ 541,062
Revenue $ 4,898,011 $ 18,816,823 $ 4,084,592
Earnings from Mine Operations $ 1,541,521 $ 5,806,792 $ 1,818,991
Gold Production (ounces) 4,921 17,703 3,454
Mine Site Cash Cost (US$/oz Au) $ 566 $ 497 $ 490
Avg. Au Price Realized (US$/ounce) $ 1,113 $ 978 $ 908
Margin on Gold Sales $ 547 $ 481 $ 418
Weighted Avg. Common Shares 338,849,857 194,140,925 174,200,804
Net Income (Loss) ($553,187) ($4,018,114)$ 1,612,611
Net Income (Loss) per share ($0.00) ($0.02)$ 0.01

(Canadian $ except as noted)




The Company's financial position has significantly improved when compared to the same period of 2009. For the first quarter ended March 31, 2010, the Company reported working capital of $8,215,944 compared to a working capital deficit of $13,188,514 for the corresponding period in 2009. During the ramp up of the Lamaque gold project in Val d'Or, Quebec, the Company spent capital on the purchase of new underground low profile mine equipment, the refurbishment of the Sigma mill facility, the construction of new crushers and conveyors, and began the payment of long-term debts negotiated with various suppliers.


In the first quarter of 2010, corporate administration expenses were $1,009,583 (Q1 2009: $498,612), an increase of approximately 102%. These expenses are related to the re-start of the Lamaque operation including additional manpower, salaries and benefits, as well as travel and accommodation expenses.


Outlook for the full year 2010


On a consolidated basis, the Company plans to expand production to approximately 55,000 to 60,000 ounces in 2010, 115,000 ounces in 2011, and 120,000 in 2012. Additionally, in the second quarter of 2010, the Company will commence a 45,000+ meter underground diamond drill program at the Lamaque mine complex. The Company plans to commence a detailed exploration program later in 2010 at its San Juan gold project, and will continue to work on the continued expansion and modernization of its San Juan gold mine to fully anchor the Company's growth of its Peruvian business unit.


Margaret Kent, President and CEO of Century commented, "As discussed recently in our 2009 Year End Financials and MD&A, the worst times are behind us. The first quarter of 2010 was a busy period for our operational and technical teams at both the San Juan gold mine in Peru and our Lamaque gold mine in Quebec, Canada. The San Juan gold mine continues to meet our expectations and we will look to spend additional capital at the operation in 2010/11 to modernize the facility and expand the production. We are on schedule with our Lamaque gold mine and look to have a busy 2010 as we continue to bring the operation up to our production expectations."


Ms. Kent further commented, "I would like to personally thank each and every employee for their hard work during the first quarter of 2010. I am very proud of our team at Century Mining and the accomplishments and milestones we have reached to date."


The Company is well positioned to grow in market value as management pursues new opportunities, particularly in Quebec and Peru, with an emphasis on the acquisition of low-cost producing gold mines and assets that generate cash flow or that can be returned to profitability in the near term.


Conference call


Management will host a conference call on Wednesday, June 2 at 11:00 a.m. Pacific time (2:00 p.m. Eastern time) to discuss 2009 results, future developments at its operations in Quebec and Peru, and the results of the first quarter of 2010. Mining analysts, investors and the media are invited to dial toll-free 1-800-369-2128 in Canada and the United States, or 1-630-395-0029 from international locations (normal toll rates do apply) and state the verbal passcode "CenturyMining". Please dial approximately 5 minutes before the start of management's presentation. The presentation will be followed by a question and answer period.


The conference call will be archived for later playback and may be accessed by dialing 1-888-294-0358 or 1-402-220-9749 and entering the pass code 1324#, or via www.centurymining.com via a downloadable audio file. The archived playback will be available until June 25, 2010 11:59 p.m. Pacific Time.


Annual Shareholders Meeting


The Company's Annual General Meeting of shareholders which had been set for early June has been rescheduled for 10:00 a.m. Pacific Time, Friday, June 11, 2010 in the UBC Room at the Vancouver Club, 915 West Hastings Street, Vancouver, British Columbia, Canada.


About Century Mining Corporation


Century Mining Corporation is a Canadian junior gold producer and holds strategic land positions in Canada, United States and Peru. The Company's strategy is to grow to an intermediate gold producer through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.


On behalf of Century Mining Corporation,


Margaret M. Kent, President & CEO

Caution Concerning Forward-Looking Information


This press release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws. We use words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in gold and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our South American activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis included in this Annual Report, in our Annual Information Form and in other filings made by us with the Securities and Exchange Commission and with Canadian securities regulatory authorities and available at www.sedar.com.


While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information.



FOR FURTHER INFORMATION PLEASE CONTACT:

Century Mining Corporation
Peter A. Ball
Director of Investor Relations
(360) 332-4653 or Toll Free: (877) 284-6535
(360) 332-4652 (FAX)
pball@centurymining.com
www.centurymining.com



Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Saturday, May 22, 2010

Pieces of info surrounding the achievement of Performance Hurdle A

Per the Jan. 14`10 DB agreeement, Performance Hurdle A was identified as having 2 mandatory components:

1) Crusher up and running
2) 16,800 processed ore within a 14 day period (averages to 1,200 tpd)

On April 28`10, Century reported that it was processing ore at a rate of 900 - 1,100 tpd at Lamaque. This was below the 1,200 tpd average it was stated would eventually be needed for Performance Hurdle A.

``is currently processing 900 to 1,100 tonnes per day of ore from current production and existing stockpiles.``

Yet, on April 29``10, the next day, Century achieved Performance Hurdle A. From the MD&A:

``o) On April 29 2010, the Company withdrew from the Performance Reserve Account US $5.0 million after having satisfied their obligations under Performance Hurdle A, as amended``

On the surface, it looks like the original requirement was amended from 1,200 tpd to 900 - 1,100 tpd (in our favour). Although, (even though there are no indications that it does) it`s not clear if the agreement was amended to allow the ore difference to be made up with SJ ore.

Firstly, hopefully it`s an indication that DB like what they see from Lamaque so far, thus feeling comfortable enough to release the first $5M from escrow ahead of schedule (at 900 - 1,100 tpd level instead of having to make the company wait for 1,200 tpd to be achieved). Secondly, hopefully it`s an indication that DB is trying to be a partner in this venture, as oppose to being a shark just waiting to trip us up. However, only time will truly tell.

Friday, May 21, 2010

IIROC- Trade Resumption

VANCOUVER, May 21 /CNW/ - Trading resumes in:




<<
Issuer Name: Century Mining Corporation
TSX-V Ticker Symbol: CMM
Resumption Time: May 25, 2010 9:30 AM EDT

BCSC revoked the CTO (per Century`s AGM circular, pg 23)

At the time the circular was printed, no update was given about the status of the Quebec regulatory. Online documents now show that Quebec has since revoked its CTO also, but no official word in the circular about Quebec due likely to print cutoff timing. It now comes down to the TSX-V going through the entire processing of collecting all the valid documents, resetting the systems to allow trading to occur again and communicating with all the necessary parties to give the green light (and timing). I see that that blog posters are suggesting that the green light is next Tuesday.

Here is the comment from Century`s AGM Cirular:

``On May 12, 2010 the Company announced that the BCSC had invoked a cease trade order with respect to the Company’s shares as a result of the Company’s failure to file its annual financial statements and management’s discussion and analysis for the year ended December 31, 2009. As of the date of this Circular, the Company has filed its annual filings for 2009 and the BCSC has revoked the cease trade order.``

Odds and ends

Thanks for the update on the CTO status Paxman!

If we had to have a CTO, perhaps this is the best time for CMM to not be trading. The current market correction is probably the worst since early 2009 (when the planet was still heavily involved in the global crisis).

Century is in far better shape now, with having sufficient cash on hand and a far much better balance sheet. The market situation doesn`t change anything we are trying to do on the operations front (which is much different from the situation we faced during the global crisis, and also much different from what many juniors - not producing revenues and looking for cash injection from this turbulent market - are facing right now).

Perhaps today will give us our 3rd gold bar at Lamaque since the last gold pour update.

From the BD update NR:

``will collar the portal access drift, ahead of schedule, the week of May 10th``

``will only require approximately 25 meters of development from the portal entrance to reach the mineralized zone, where the permit also allows for the extraction of a 20,000 tonne bulk sample of mineralized material from the dyke``

It would be nice if we can add the BD ore to the mix at some point in the near future. It would take the place of the stockpile ore, as that pile dwindles down.

Also, hopefully the crown pillar study is going well. It would be nice if all is coming together super well on that front and we get our long-hole stoping permit early over the next few months. That permit will allow us to begin full-scale mining on the BD dyke, as well as initiate development work on the North Wall.

From the May 3rd NR:

``the first jumbo from the fleet of low profile underground mine equipment has arrived on schedule at the Lamaque operation and is being readied for underground deployment this week. The low profile equipment is expected to significantly increase the underground production rate in the Lamaque #2 mineralized flat zones and also assist in lowering mining costs.``

Hopefully more of the low profile equipment has arrived since this May 3rd update. We are banking on this new equipment to significantly improve room and pillar mining of ore located in Lamaque no. 2 (and also the 1.7M ounces located in the Cross-Over section much further down the road once exploration work has been performed to upgrade at least some of those ounces). As a side note, per Peggy in the January conference call, Century tested some of this low profile equipment during the test mining phase at Lamaque in early 2008 (before Century ran out of cash and the global financial crisis hammered us).

Monday, May 17, 2010

Just a minor follow up note on one of our Val d`Or neighbours

Harricana River Mining will not be moving forward with the Copper Reef transaction afterall. As you may recall, Harricana is the private company that holds the mining property rights directly to the west, northwest and north of Lamaque. They seem to have about 200,000 ounces in their resource profile (with likely the potential to increase ounces further) and about $3 - 4M in cash. I don`t know for sure (as they are not public) but I get the feeling that their ore body is somewhat advanced, although I don`t think they are at the infrastructure development stage as yet (their property seem to be listed on a number of maps as an advanced stage property).

Peggy should contact them for 2 reasons:

1) To get an appreciation of what they are all about.

2) If our geologists think they look good, to see if they want to do some sort of deal (now or later). Century is the ideal partner for them due to mill location.

Here is part of today`s NR from Copper Reef:

``Copper Reef further reports that the offer it previously announced on March 19, 2010, by which it proposed to acquire all of the issued and outstanding shares of the private mineral exploration company, Harricana River Mining Corporation (“Harricana”) based in Val-d'Or, Quebec, has been terminated. The Company and certain leading shareholders of Harricana were unable to reach an agreement on terms satisfactory to each.``

Here is my original post on this subject matter (with a link to a property location map, relative to Lamaque):


http://www.stockigloo.com/2010/04/owner-of-property-immediately-to.html

Sunday, May 16, 2010

$18.5M YE available Cash ($32.5M w/escrow Cash) is after major Debt repayments

This is something I forgot to highlight in my last post. The company made the following cash payments prior to closing the YE books:

$8.5M to IQ for debt settlement (cash portion only)

$750K to Teck for royalty buyout (cash portion only)

$2.2M to Gerald Metals to eliminate the working capital gold facility

$400K to Gerald Metals to eliminate the gold forward contract debt

$3.5M to Quebec Gov`t for prepaid reclamation purposes

$300K Accrued employee payments (estimate)


All of this adds to about $15.5M. In other words, Century made $15.5M in cash payments to clean up the books prior to YE, yet, Century still had $18.5M in available cash at YE or $32.5M in available plus restricted/escrow cash at YE (after all of this clearn up).

Century also eliminated the $1M convertible debenture to MRI (but subsequent to YE and paid with shares and not cash).

The deferred revenue amounts in the balance sheet all relate to the prepaid gold sales obligation. If we are successful operationally at Lamaque then this will have zero impact on our cash position. We just need to deliver the committed ounces (and achieve operational start up objectives at Lamaque) and this obligation will be eliminated over time. No interest payments either (again, if our gold deliveries are on time).

Our primary cash obligation in current balance sheet relates to the payables and accrued liabilities, but no interest payments required there either. We`ll see if the company used some of the available $18.5M to reduce a bit of the payables in Q1 and Q2.

The new low profile equipment ($7M) will be purchased via long-term capital leases. There shouldn`t be much up front cash outlay (if any).


We don`t know how much of the $18.5M available YE cash is still remaining at this time, but there should be some.

As highlighted previously, we have some other cash sources going forward:

$5.0M from escrow/restricted pool (as noted, Century`s start up accomplishments allowed us to receive this cash amount on April 29th)

$8.5M from escrow/restricted pool, which may be available as early as September (if all continues to go well)

$750K from accounts receivable at YE

$6.0M from other receivables at YE (includes $4.2M of VAT recoveries, which may be recovered at various points in the future)

$___M from Lamaque unfinished ounces carried in inventory from last year

$___M from 2 additional gold pours at Lamaque since the last gold pour update

$___M future gold pours at Lamaque

$___M from operating cash flow at SJ

$15.0M exercise of warrants from Finskiy and Scola (currently far in the money, if required at any time for emergency purposes)

Our balance sheet looks very good. Current cash position and future cash availability looks very good relative to cash needs. Everything comes down to delivering at Lamaque. If we deliver operationally at Lamaque we are in excellent shape for big things.

Saturday, May 15, 2010

Initial thoughts on the YE statements and my evaluation grades of selective areas of Century

All and all, things are looking good. Some bad habits still need to change, but generally there are a lot of positives and a lot of things are heading in the right direction.

Here is my grading (at this moment in time) of selective areas of Century:

*Century employees that kept things going during the financial crisis = A++

*IQ = A++

*Finskiy and Scola = A+

*The creditors that supported the company by signing up for the $.25 debt for share program (when the share price was far below $.25 on most days) = A+

*Lamaque exploration team = A-

*The people that built (and fine tuned) the Lamaque start up plan = A+

*Lamaque start up team = A

*Operations team at Lamaque = B- (early, could improve with time)

*IR = B (could easily be an A with more institutional investments and more analyst coverage)

*Meeting deadlines = D (big improvements due to Lamaque start up, as this use to be an F - the goal for this area needs to be A++)

*Credibility = D- (improved, lots more room to improve further)

*Communications = D+ (big improvement, as this use to be an F)

*Transparency = D

*Changing the perception/image of Century = D

*The people responsible for managing the audit process = F

*The person that wrote the MD&A = F



Here are my thoughts on the YE statements:

1) Performance Hurdle A was achieved. On April 29th, the company accessed the $5M from escrow. This is something they should include in one of their NR updates.
``Subsequent Events``
``o) On April 29 2010, the Company withdrew from the Performance Reserve Account US $5.0 million after having satisfied their obligations under Performance Hurdle A, as amended``

2) To access the next $8.5M in escrow, we can count SJ production as part of the 70K run rate production. This will make it more achievable as oppose to only being allowed to use Lamaque ounces. The note in the financials is consistent with the DB agreement document with regards to Performance Hurdle B. However, one should be aware that the start up guarantee still uses a 70K run rate target for Lamaque only (we don`t appear to be allowed to use SJ ounces for that goal, if I understand the DB document correctly).

Nevertheless, the inclusion of SJ ounces in the Performance Hurdle B target is extremely helpful. If SJ can continue to deliver 4,750 ounces of production per quarter then it means an annualized run rate contribution of 19,000 ounces. It means Lamaque only has to deliver run rate of 51,000 ounces. Assuming Lamaque eventually gets up to 95% recovery and 4.76 g/t grade, it means that Lamaque only has to deliver above 980 tpd in average ore for the 4 consecutive months, in order to achieve Performance Hurdle B. With only needing 980 tpd from Lamaque (@95% and 4.76 g/t), assuming Century can compensate later on for the early lower start up grade, we might be able to use May, June, July and August as the 4 consecutive months (without having to toss out May and June). If successful, it could mean we get to pull the next US$8.5M out of escrow in September (or October).

From YE financials:
``Once the Company has achieved a combined annualized production rate from the San Juan Mine in Peru and the Lamaque Mine based upon the sum of production for the period of four consecutive calendar months, of at least 70,000 ounces of gold, a further $8.8 million (US $8.5 million) can be withdrawn. (Performance B)``

From the Jan 14`10 DB agreement filed on SEDAR:
``Performance Hurdle B` means the Seller meets or exceeds an annualised
production rate from the Mining Projects (based upon the sum of production for the period of four consecutive calendar months ended immediately prior to the relevant Performance Reserve Account Release Date) of at least 70,000 Ounces of Gold which such production rate shall have been verified by the Buyer or by a third party appointed by the Buyer based upon refined Gold receipts issued by the Refiner and changes in the mill and mine inventory;``

3) I don`t see a note in this MD&A about the 2,000 unfinished Lamaque ounces that had been carried forward all this time. However, I still see about $1.7M of in-process gold booked at YE. The in-process gold total was about $2.1M at end of Q3. If I take the $2.1M Q3 amount and I divide by 2,000 ounces, I get about $1,050 per ounce value. If I then apply the $1,050 book price to the $1.7M in-process amount booked at YE, I get about 1,600 ounces. Perhaps we still have somewhere between 1,000 and 1,600 unfinished Lamaque ounces we can finish off (now that the mill is up again) and sell at the current $1,245 gold price.

4) Current Liabilities:

a) There is an amount of $3.2M labelled as deferred revenue - booked as Current Liabilities. This represents the current portion of the prepaid gold sales commitment.

Financials: ``The current portion of deferred revenue represents the revenue expected to be recognized in 2010 in respect of gold to be delivered in 2010 pursuant to this agreement.``

MD&A: ``The Company has recognized a current liability for the ounces to be delivered in the next twelve months. ``

b) The $1M Convertible Debenture (MRI) has since been retired (converted to shares).

c) Their A/P and Accrued Liabilities area is quite confusing to me. It was about $14.2M in Q3. For YE, they are now showing $14.4M plus $5.0M in current portion of LT debt. Here is the note about the $5.0M:

``During the year, the Company renegotiated amounts owing to certain vendors and creditors, whereby payment terms were extended into 2012........... As a result of this extension of payment terms, these amounts have been reclassified from accounts payable to Long-Term Debt. The payments under these extended terms are as follows: 2010 - $4,952,767; 2011 - $910,504; 2012 - $494,021.``

Where I am confused is how $14.2M at Q3 turned into $20M+ (with $19.4M due in 2010). This isn`t what I was expecting. I was expecting some of the $14.2M to still be unpaid (perhaps maybe with a remaining outstanding balance below $10M). I certainly was not expecting it to grow from $14.2M to $20M+, especially given that this period for prior to Lamaque start up. If all $20M+ existed in Q3 then I am unclear where the difference was booked (above the $14.2M). It would have been nice if they had provided better disclosure in the YE financials, with perhaps a reconciliation between Q3 and YE. I guess even though the current obligation of $19.2M is substantial, at least it is (or should be) unsecured obligations. That should provide an opportunity to renegotiate if all of the cash is not available during 2010. The recent $5.0 from escrow will help. The $8.5M from escrow later in the year will help also. Hopefully we will also have surplus cash from both operations . We also have the $15M worth of Finskiy and Scola emergency warrants (currently way in the money). The A/P and Accrue Liabilities area is our main payment area (from the balance sheet) so there shouldn`t be a major need to divert cash to other balance sheet items. We do not have to pay interest on the DB gold sales (if we are on time with our deliveries of course). We do not have to make any cash payments on the principal either. This should all help in allowing us to address the A/P and Accrued Liabilities situation.

5) Income Statement

As a general comment, personally, I found their commentary/lack of explanations on key Income Statement lines to be extremely poor. Going from reporting strong profits all year long to suddenly showing a significant YE loss is something that warrants up front explanations, in my view. Without it, it`s a very quick way of losing credibility and encouraging people to second guess all future published information, in my opinion.

Best I can tell, the loss resulted from a number of (net) factors - it`s not nearly as bad as it appears on the surface (the up front costs of the various financings is one of the big contributors):

a) Mining operating expenses went from being $6.7M at YTD Q3 to $13.0M at Y/E. This represents an increase of $6.3M in one quarter alone. This is the reason for the operating loss in Q4 and plays a significant role in driving out the net loss in overall 2009. Now, SJ did 17,036 ounces in `09 @ US$485 cash cost per ounce. That works out to around $8.3M in mine operating costs (maybe a bit more after converting to cdn$), but it doesn`t equate to the C$13.0M booked for 2009. This would suggest that there are other costs booked as well. The extra costs are likely mine development costs that were expensed. Either heavy Q4 work that was done or work that was done in previous quarters and released at YE (by the auditors), or a combination of both. They may have also been a change in accounting treatment the drove the catch up. This is why the company`s MD&A is so poor. The market should not have to go through this exercise in blindly trying to put the pieces together (certainly not with something so critical to the outcome of the statements and the performance of the company).

b) $5.2M in financing charges

MD&A: ``transaction costs pertaining to the forward gold purchase agreement and other financings of $5,255,943``

c) Offsetting a portion of those new charges is a $4.8M gain resulting from various items (otherwise the net loss would have been a lot worst).
``a gain on settlement of debts of $4,777,370``

d) There were a few other (smaller) contributors also, such as $700K in stock base compensation (a non-cash item of course).

Thursday, May 13, 2010

Frustrating, embarrassing, more kicks in the groin area for long suffering shareholders, but at least the core business is moving along

We need to shed the label of being a mickey mouse operation (we were on our way, but this is a big setback, confidence and perception wise).

As frustrating and embarrassing as this CTO situation is, with yet another kick in the groin for LONG LONG LONG suffering Century shareholders, at least our bread and butter parts on the business should still be trucking along alright.

I am not as much disappointed with the company/auditors needing a bit of extra time with the YE audit process (due to the complexity aspects) as I am with the company allowing the situation to reach BCSC initiated full CTO stage.

Although, a sharp finance team would never ever (under no circumtances, IMO) have allowed this to happen. I know from experience. I have been involved in YE audit processes (on the company side), where major complex reorganizations (and accounting treatments) were encountered (far larger than what Century went through here). The deadlines were set in stone and there were no allowable excuses for missing them. As such, the key is staying ahead of the game and leaving yourself significant room for last minute surprises (even if it means the accounting staff has to burn the midnight oil for several months straight, including weekends). It comes down to taking pride in your job. Also, there needs to be open conversations with the auditors throughout the year (if possible). For example, Century`s CFO should have been running potential accounting treatments by the auditors as early as Q4 last year (even prior to the financing close). A successful audit process is about a good partnership between the company and the auditor, and to ensure no major surprises - COMMUNICATION/ADVANCE AGREEMENT ON ACCOUNTING TREATMENTS IS VITAL. The CFO should put pressure on the audit firm to ensure the auditors step up, and also work overtime if necessary, if they are not carrying their side of the deal. The CFO`s job is to manage the process.

Honestly, having lived through major (complex) YE processes (where there is no tomorrow if you don`t meet your deadlines), I am just shocked to see how frequently Century misses on its Y/E deadlines (and even how many last minute submissions with quarterly statements, or so it seems). Again, I don`t know if it`s a lack of pride, lack of accountability, lack of burning the midnight oil, lack of advance communications/partnership with the auditors, lack of planning, lack of pressure from executives..... It`s impossible for us to know. Though, IMO, there is a critical flaw somewhere. In my view, the problems need to be identified and corrected if the company is serious about growing or even confidence from the market (especially from instituations).

Anyway, (as disappointed as I am about missing the filing deadline - I can give them a break as the executives were focused on delivering operationally, which is much more vital) I am more disappointed that they allowed the situation to end up turning into a BCSC initiated (full) CTO. It`s not clear if they missed the boat in not applying for a management CTO (far less damaging) or if they somehow maxed out on that option (from previous years).

Anyway, here is the positive: Gold price is strong and we are pouring gold - that is what ultimately matters the most. Regardless of everything else, we must deliver operationally at Lamaque otherwise we will have serious issues to overcome.


*230 ounces from Lamaque for the wk of April 30th = about $270K in gross revenue (assuming around $1,175 gold price)

*the rumour seems to be 700 ounces per wk (this is probably reasonable for early low grade processing, 900 tpd @ 95% recovery will likely eventually get us about 900+ ounces per week once we eventually step it up to around 4.76 g/t) = about $840K in gross revenue for week ending May 7th at Lamaque (assuming $1,200 gold price)

*let`s go with another 700 ounces for wk ending tomorrow, May 14th = about $870K in gross revenue at Lamaque (assuming $1,240 gold price)

That would equate to almost $2M in gross revenue at Lamaque since we starting pouring gold. That goes a long way in covering a chunk of our daily operating costs (even though the costs will be capitalized until commercial production).

Also, at the current gold price, we are likely looking at generating about $900K per month of operating profits out of San Juan (not gross revenue, but Ops contribution). This is even after deducting the 200 ounces per month going towards the prepaid gold program and maybe, say, profits from another 100 ounces to cover the operating costs to produce the 200 prepaid ounces.

Then, we still don`t know what the status is with the 2,015 ounces previously sitting in the Lamaque in-process inventory (to be fully processed after restart of the mill operation). That will give us about $2.5M at current gold prices.

Wednesday, May 12, 2010

NR on Cease Trade

BLAINE, WASHINGTON--(Marketwire - May 12, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) advises that because the Company's December 31, 2009 audited financial statements and management's discussion & analysis that were required to be filed by April 30, 2010 have not yet been completed, the British Columbia Securities Commission has issued a cease trade order until the Company's December 31, 2009 financials are filed. The Company is working closely with its auditors to complete and issue the financial reports as soon as possible and expects to do so later this week.


About Century Mining Corporation


Century Mining Corporation is a Canadian junior gold producer and holds strategic land positions in Canada, United States and Peru. The Company's strategy is to grow to an intermediate gold producer through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.

CMM halted

We`ll have to wait and see about the true details. Some people have posted that Stockwatch says it`s a Cease Trade Order (CTO). It`s better to wait for confirmation from the company, just to be sure.

Tuesday, May 11, 2010

Monday, May 10, 2010

I think the drill operators are for Jumbo drilling purposes and not for the exploration drilling afterall

I thought about jumbo drilling possibilities after I posted my last post. As such, I decided to take another look at the job description. The actual job description on the post is very limited, and it`s in French. I couldn`t copy and paste it so I retyped the french words in order to get a Bablefish translation. Here is the translated Bablefish description.

``To operate a drilling machine have arrow (JUMBO) and to achieve work of development necessary so D `ensuring the good performance of the operations of the mining one.``

I don`t think we are hiring to keep the exploration work in-house afterall. I think the 6 people are being hired to operate our Jumbo drills (based on the limited job posting, translated, explanation). The Jumbo drills are required just prior mining the ore areas (and also during the mining process). It`s a completely different type of drilling relative to (large drill rig) exploration drilling

As a result, our exploration drill program will likely still be outsourced to a drilling contractor. I believe the company has been reviewing tenders from contract operators over the past few months. If we are sticking with a contract drill operator we should expect to see the new drill program launched soon (is my guess) - perhaps May or early June.

Friday, May 7, 2010

Job posting - Drilling Machine Operators (6 people to be hired)

This is a very interesting job posting, at least from a drill strategy perspective. I thought they were leaning towards contracting out the drilling work. If such is the case then I wonder why they would need to hire in-house drill operators. It almost seems as if they decided to go in the direction of carrying full-time employee drillers instead of contracting out (perhaps partly because it`s too costly too contract out and partly because we will likely be drilling continously for many years into the future). If they are hiring drillers then they will likely need to lease drill rigs (likely long-term capital leases). I believe they had leased 2 drills back in 2008. I believe they returned one and was considering keeping the second one. If they are hiring 6 drill operators (in Quebec) then it sure sounds like they are planning to have at least 2 drills going simultaneously (even if the drillers work in shifts).

By they way, if this is the direction they going in, it makes for an interesting side business in periods of downtime. With an in-house assay lab, in-house drillers and our leased drill rigs, we can provide our own contracting service to the numerous exploration companies in the neighbourhood. There might be a couple of months of downtime in between our own drill programs in order to review the data and build the next phase of the program. Also, having multiple drilling crews should give us some flexibility to avoid delays (if we decided to get creative). I am fimiliar with at least a couple of mining companies that operate in this manner.

Taking things a step further, Century does have a Corporate goal of becoming a mid-tier gold producer, via both current mine expansions and strategic and synergistic opportunities. If they eventually consolidate junior companies within the Val d`Or area then they wouldn`t need to contract out our drillers during downtimes. There will be plenty of drilling work for our drill crews. Perhaps Century`s executive team is thinking ahead here by (potentially) selecting this in-house drilling approach.

The posting can be access to the right of this page.

``Drilling Machine Operator - Underground Mining``

``Number of positions to fill: 6``

``This employer invites people aged 55 and over to apply.``

``Equal access``
``We implement a voluntary equal access employment program under the Qu├Ębec Charter of Human Rights and Freedoms and encourage applications from women and ethnic minorities.``

Wednesday, May 5, 2010

Today's Trading Summary

A little more selling from Instinet bringing their 3-day total to just under 500,000 shares, but sustained buying from Canaccord all day.

Observations from the Bedard dyke NR

1) The 2 holes with minor gold showings play an essential role in mine planning. It identifies the assumed external limits of the dyke. However, it`s possible that the limits may extend further, but they wouldn`t be able to confirm either way until they drill at a deeper level.

The other hole returned excellent results. It hit mineralization 8 times. We`ve had a lot of really good BD drill holes, and I think this one ranks in the upper tier. This drill hole further confirms that the Bedard dyke is make up of a number of solid mineralized zones going down the dyke (this is what was visualized for the BD as far back as 2007, or before, and was confirmed by recent drill holes and further confirmed by this drill hole - it at least indicates that our geologists are getting a good handle on the Lamaque structures, and it potentially also indicates that the mineralized structures we are currently targeting are looking similar to historical Lamaque structures that produced over 9 million ounces of gold in the past). Hits from this drill hole:

*hit 1 - 1.23 (m) True Width @ 1.33 g/t (21.61 to 22.83 m level)

*hit 2 - 1.24 (m) True Width @ 2.93 g/t (63.73 to 64.95 m level)

*hit 3 - 2.78 (m) True Width @ 11.08 g/t (73.12 to 75.86 m level)

*hit 4 - 1.67 (m) True Width @ 8.88 g/t (82.36 to 84.00 m level)

*hit 5 - .80 (m) True Width @ 8.95 g/t (99.73 to 100.52 m level)

*hit 6 - .77 (m) True Width @ 5.23 g/t (102.14 to 102.90 m level)

*hit 7 - 1.71 (m) True Width @ 1.79 g/t (105.25 to 106.92 m level)

*hit 8 - 1.26 (m) True Width @ 7.35 g/t (210.53 to 211.74 m level)


2) ``The initial exploration drift into the Bedard Dyke will be used to immediately develop underground drill stations to continue further exploration which was not able to be drilled or collared from surface. The exploration team will be targeting the dyke through an underground drill program to test the new system at depth and to the southwest. The goal is to define multiple continuous mineralized flats that are assumed to continue outside of the mineralized zone which was recently discovered in the Company's February 2010 drill campaign.``

``The exploration program will also examine potential rollover or "blowout" zones where the Bedard Dyke meets "north dipper" structures, identical to what was mined in the historical open pit, and will target an additional high grade shear zone just north of the Bedard Dyke that was mined at depth historically.``

At lot of good stuff here. Firstly, they will continue the BD drilling once they gain access to the underground (from u/g drill stations). They will test at depth and southwest. From what I remember, the flats run horizontal (at various levels down the dyke) and extend beyond the dyke limits. I think this might be similar to other historical dyke structures on the property. It likely bodes well for picking up further ounces. I wouldn`t be surprised if the dyke itself extends further at depth. In addition, the ``north dipper`` structures are extremely prominent on the property. Given the close BD proximity to the the o/p, I wouldn`t be surprised at all if some of the BD and some of the north dippers are joined together. Also, I look forward to see what we find at the (historically mined) high grade shear zone just to the north of the BD.


3) ``The Bedard Dyke exploration permit will allow the Company to collar the access portal and proceed underground via 300 meters of exploration drifting and decline ramps. The Company will only require approximately 25 meters of development from the portal entrance to reach the mineralized zone, where the permit also allows for the extraction of a 20,000 tonne bulk sample of mineralized material from the dyke.``

``The development of the exploration drifts will be used in preparation for mining, which will commence upon completion of the crown pillar study.``

Here is my interpretation of all this: It sounds like the exploration permit allows them to also extract the 20,000 tonne bulk sample at anytime. That should be worth around 3,000 ounces. Full scale mining of the BD is not expected to start until the crown pillar study has been completed later this year (as has been the plan all along). I believe that is about when the long-hole stoping permit will be granted. I believe the long-hole stoping permit allows for long-hole stop mining at both the BD and the North Wall mining location (which will be developed in Q4 this year).


4) Finally, a mid-term to long-term target I would eventually like to see Century take a shot at if possible (and no important structures in the way). There were a number of high grade zone targets identified in the April 6`09 NR. Two of these high grade zones appear to be located just to the north and northwest of the BD structure, but deeper (around the 1,700 ft level). It is believed that these zones represent at least 150 ft extension of existing workings at that level. It is also believed that these are dyke structures. I`m hoping that perhaps eventually the establishment of u/g BD drill stations (and the proximity to these lower zones) will allow Century to poke a few test holes further downwards (if nothing important is in the way). Not only could it confirm the outward extentions of these lower high grade zones, but I wouldn`t be surprised if the drills find new mineralization on the way to these zones.

Below is a link to the CNW version of the April 6`09 NR. There is a figure you can click on that shows a diagram of the drill hole location relative to the pit (the BD is located at the left side of the pit, flowing southwest). I think it`s a word file. The April 6`09 NR is even better on the company`s website (as it has the diagram within the NR), but I had problems calling it up sometimes. You can try your luck on the company`s site first (it`s a better NR visually). By the way, here is what those 2 historical holes look like (from that April 6`09 NR):

1) 13.8 (m) True Width @ 23.20 g/t

2) 23.6 (m) True Width @ 8.50 g/t


http://www.newswire.ca/en/releases/archive/April2009/06/c7682.html

Century Receives Permit to Access the Bedard Dyke Gold Zone at the Lamaque Gold Mine, Val D'or, Quebec

http://www.marketwire.com/press-release/Century-Receives-Permit-Access-Bedard-Dyke-Gold-Zone-Lamaque-Gold-Mine-Val-Dor-Quebec-TSX-VENTURE-CMM-1159296.htm

New Poll

Countdown to YE Financials. May 6th - 13th; May 14th to 21st; May 22nd to May 29; May 30 to June 3rd.

I think I will ask Peter Ball to post this on the homepage of CMM. "Countdown to YE Financials".

LOL.

Tuesday, May 4, 2010

Today's Trading Summary


Even Canaccord and Anonymous can recognize a bargain sometimes.  Yesterday was the first time ever that I saw Instinet buy or sell CMM shares.  Their 2-day total sales is 370,000 shares.  If they continue selling, then it is probably shares acquired through a debt settlement.

Operations focused

1) ``The mill can now expect the commencement of regular weekly gold pours going forward``

I`m sure Century will never do it, but, in my view, they need to publish (on a weekly basis) approximately how many gold ounces are poured each week - for at least the next few weeks.


2) ``The Company is also now preparing to commence a 150,000 foot (45,000+ meter) exploration and definition drill program in May 2010 at Lamaque``

Assuming they are ready (and it doesn`t get in the way of finalizing the YE financials), Century should launch the Lamaque exploration program as soon as possible. It doesn`t matter if it doesn`t boast share price right now. Time is precious. Getting drill data back asap should help in stope development for near-term mining, as well as improve the mid-tier and long-term mine plan expansions. The assay lab is ready. Let`s get the drill program going (if the program is ready of course).


3) ``The Company is also pleased to report that the first jumbo from the fleet of low profile underground mine equipment has arrived on schedule at the Lamaque operation and is being readied for underground deployment this week.``

This is also vital information to share with the market on a weekly basis over the new few weeks, or until more of the equipment has been deployed. This is a key part of the strategy to successfully mine the flats.


4) As mentioned several times already, in my view better (more specific) info needs to be shared with the market with regards to timing of Bedard dyke mining start up and what type of tonnage contribution is expected in the near-term from the Bedard dyke. The Bedard dyke is a key component of the ramp up strategy.

Monday, May 3, 2010

Today's Trading Summary























Today's news headline from Stockwatch was "Century Mining fails to file 2009 results on time".  What should have been a Red Letter Day was turned into a Red Flag Day.  This is the third consecutive year that year-end financials have been late.  The more things change the more they stay the same.  Bad enough to be late, but obviously Peter Ball was completely in the dark as he apparently kept insisting that they would be out by Friday at the latest.  4 months should be enough time for anyone to get their financials out. As a result the stock was (rightly) punished.  It looks like there will have to a second rescheduling of the AGM.

Brief thoughts

1) ``The first gold pour was from the gravity table concentrate from the first few days of operation, which yielded a gold dore bar weighing approximately 230 ounces. The mill can now expect the commencement of regular weekly gold pours going forward as the Carbon-in-Pulp (CIP) circuit is now fully operational. Future gold pours will include gold from the stripping circuit as well as the gravity recovered gold.``

A gold bar of 230 ounces is probably reasonable for the first few days of operations (depending on the definition of ``few days``). Lamaque uses a 2 step recovery process. It sounds like the gold pour was from only the first step in the process. Historically, I believe the gravity circuit recovers about 40-60% of the gold. Century should now be able to run that same ore material through the CIP circuit for further gold recovery, which should add to the 230 ounces recovered already from that bunch of ore material. I believe this second stage uses a cyanide solution to help liberate the gold. The CIP process is a good low grade recovery process. The ore starts as high grade prior to entering the gravity circuit, but after the 40-60% recovery the grade (from the remaining unrecovered gold) naturally would get substantially lowered. The CIP circuit is a good 2nd stage recovery compliment to the gavity circuit, and has allowed Lamaque to historically deliver a 96% recovery rate.

It sounds like both the gravity circuit and the CIP circuit are fully functional now (and going forward).


2) ``The Company will be able to provide tonnage, grade and recovery statistics from the first weeks of production at a later date.``

No point providing detailed stats to the market right now as the ore has likely not even gone through the full gold recovery process as yet. Providing incomplete data too early in the mine start up process can only lead to misunderstandings and ultimately a massive selloff in the share price. At the same time, it is absolutely critical to feed this info to the market as soon as the data is complete. The market needs to gain confidence that all of the key indictors are where they should be, or at least are heading in the right direction.


3) ``The Company is also pleased to report that the first jumbo from the fleet of low profile underground mine equipment has arrived on schedule at the Lamaque operation and is being readied for underground deployment this week. The low profile equipment is expected to significantly increase the underground production rate in the Lamaque #2 mineralized flat zones and also assist in lowering mining costs.``

Theoretically, the low profile equipment should have a positive impact. The new equipment is designed to load and carry more material from similar spaces of the mine (the Lamaque no. 2 flats) than the old equipment. Hopefully they will receive the rest of the fleet in early May (or if they have arrived, will be deployed soon also).

It would have been nice to get a more detailed update on when the early stage mining (non-long hole stoping) of the Bedard dyke is expected to start. I know they are putting in the portal and still fine tuning (or executing) the mine plan, but I think they need to better educate the market (given the important role BD plays in the ramp up process).

First Gold Pour/Missed Deadline for Financials

BLAINE, WASHINGTON--(Marketwire - May 3, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to announce the successful completion of another milestone ahead of schedule at the Lamaque Gold Mine in Val d'Or, Quebec. The Lamaque operation reports that all systems are up and running and the mill facility poured its first bar of gold one month ahead of schedule on April 30, 2010. The first gold pour was from the gravity table concentrate from the first few days of operation, which yielded a gold dore bar weighing approximately 230 ounces. The mill can now expect the commencement of regular weekly gold pours going forward as the Carbon-in-Pulp (CIP) circuit is now fully operational. Future gold pours will include gold from the stripping circuit as well as the gravity recovered gold.


The Company will be able to provide tonnage, grade and recovery statistics from the first weeks of production at a later date. The Company is also pleased to report that the first jumbo from the fleet of low profile underground mine equipment has arrived on schedule at the Lamaque operation and is being readied for underground deployment this week. The low profile equipment is expected to significantly increase the underground production rate in the Lamaque #2 mineralized flat zones and also assist in lowering mining costs.


The Company also wishes to advise that the Company's December 31, 2009 financials have not yet been completed and filed by the required deadline of April 30, 2010.


"The Company and its audit committee have been working closely with its auditors over the last three months and has yet to complete the 2009 audit of the Company's financial statements. The delay in completing the audit of the financials has resulted from the complexity of the Company's year-end financing transactions, certain accounting treatments respecting the Peruvian operations, combined with the restructuring and paying out of a significant amount of debt including short and long-term payables. The auditors, the Company's financial team and its audit committee, are working diligently to complete the routine year-end audit. It is expected that the audit will be completed within the next two weeks. At the time of conclusion of the audit, the Company anticipates showing a set of financial statements containing a much stronger and cleaner balance sheet as compared to the previous year," commented Margaret M. Kent, President & CEO of Century Mining.


About Century Mining Corporation


Century Mining Corporation is a Canadian junior gold producer and holds strategic land positions in Canada, United States and Peru. The Company's strategy is to grow to an intermediate gold producer through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.


On behalf of Century Mining Corporation,


Margaret M. Kent, President & CEO


Caution Concerning Forward-Looking Information


This press release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws. We use words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in gold and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our South American activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis included in this Annual Report, in our Annual Information Form and in other filings made by us with the Securities and Exchange Commission and with Canadian securities regulatory authorities and available at www.sedar.com.


While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information.

Sunday, May 2, 2010

Prepaid gold sales - detailed analysis

If I was Century`s finance guy, I would make a case (similar to below) and push the auditors hard to ensure that the break-even prepaid gold price is at least $1,144 per ounce for accounting purposes. Based on the analysis, I see no reasons for a NET extraordinary loss being booked in Century`s Income Statement in the 5 year period if the gold price averages out to $1,144 (on a weighted average basis) - although there may need to be entries in some years and clawbacks in other years.

It is my view that Century shareholders` PE ratio (and ultimately share price) does not need to be lowered from this prepaid arrangement, up to a gold price to $1,144.

prepaid gold sales = 61,183 ounces

There are costs associated with any type of debt deal, be it traditional debt or prepaid debt. We received a heavily discounted upfront price for our 61,183 ounces - $33M (plus we may receive $88 per oz in the future, as a gold price participation component). However, we save in other areas, such as interest payments, underwriting fees, finder`s fees and warrants.

Value components of the deal had it been a traditional debt deal:

1) upfront cash = $33.0M


2) gold price participation @ $88 per oz = $5.4M


3) interest payments @ 10% annual rate = $11.6M ($3.3M yr1, $3.0M yr2, $2.6M yr3, $1.8M yr4, $.9M yr5)

Keeping it simple for this exercise - no discount factors, no npv calcs, etc. Fyi, in addition to Luna Gold`s prepaid gold sale arrangement in 2009, they also did a traditional debt deal of $15M. Their traditional debt facility bears interest at LIBOR plus 7.5%.


4) underwriting fee (3%) + finder`s fee (6%), conservatively on the $33M only = $3.0M

Fyi, Union Securities was charging these rates for the Chinese traditional debt deal in 2009, had that deal done through for Century.


5) additional finder`s fee of 10M warrants (Century`s conservative average future share price of $2.00 over the next 5 years less $.30 warrant exercise price, equates to $1.70) = $17.0M

The $2.00 is extremely conservative relative to Century`s future expected ramped up and organic growth expectations and also to market caps for Century`s mid-tier peers.

Fyi, Union Securities was scheduled to receive 10M Century warrants had the Chinese traditional debt deal gone through.

By not having to burn (dilute) 10M warrants/shares as part of the debt deal, Century can now do a PP at anytime in the future with those 10M shares @ a $2.00 share price and raise significant cash.


Calculation:

$33M + $5.4M + $11.6M + $3.0M + $17M = $70.0M

$70.0M / 61,183 = $1,144 adjusted gold price value of the deal for accounting purposes (in my view)

Let`s hope that Century`s management do a good job in the upcoming years in protecting the Net Profit line for Century shareholders.