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.

5 comments:

paxman said...

i find it very aggravating that the president of cmm considers the companies response to the various regulaters to be not only timely but expeditious. if she really thinks that is the case she should be replaced.

Anonymous said...

Hey paxman,

If you're lucky enough to be in Vancouver next month, and you're a shareholder of record, you could always bring up a motion to kick out Peggy. Or at least kick out the CFO.

With Scola and Finsky holding just under 50% of the company, you never know what could happen at this meeting. It could get exciting. Peggy's no longer got an iron grip.

In fact, considering CMM is an "untouchable" in the eyes of a lot of professional houses, a simple move to replace Peggy (with someone chosen by Finsky) could result in a double on the share price instantly.

paxman said...

i wish i owned more than small six figures in the number of shares. i dont type often or use e-mail extensively. i am a retired professional trader .gold looks like it might be ready again.

paxman said...

if we could close the gold futures above 1217 today we would confirm the 1172 support ane confirm the coming rally.
why did cmm lose 10 cents yesterday? is the gold we are harvesting inferior?

paxman said...

MAYBE our reputation as a responsible corporate entity was trimmed by a mere 15 cents or so- i know about the currency fluctions. to me its ridiclous that the am-dollar should appreciate under these conditions.