Sunday, July 25, 2010

CMM Valuation

Century Mining Valuation as of July 23rd 2010

Okay Jason,,, I hope you can read the above link. Peace!

3 comments:

chillby said...

Mike,
I am carrying my comment from your post up here as I am a wordy fellow and there's more room...haha.
The CMM valuation done on this main post is interesting both for its conclusions and the information they are drawn from. Nicely conservative with no gloss.
With respect to the death-spiral, however, I have a slightly different , or perhaps corollary set of observations.
25 years ago, if a gnat farted in Afghanistan, nobody knew or cared. Nowadays its front page news ten minutes after the fact. We have the impression (and the fact, so far as information is concerned) that said gnat is next door, even though its still 12000 miles away. We built "the global village," and left many of the same idiots running the place as we had before (and we wonder why we have such a mess). Nobody knew, or cared enough in the early stages of building the global infrastructure, to give any thought to how to manage or regulate the resulting types and volumes of trade. Is it any wonder that the most auspicious of the liars and thieves have defined the parameters we need to pay attention to now? 24 hour trading, the explosion of trading platforms, the rise and development of offshore banking, and most of all, the ability to transmit information instantaneously have changed many fundamentals for businesses and governments the world over.
What we are experiencing now is the painful hangover that comes with not paying attention to what would happen when the village was built. Painful as it is, though, its really a great thing. Out of this chaos and chicanery will eventually come a body of law that governs global trade, a basis for valuing currency that supercedes individual government caveats, and the best brains of our species thinking on a global scale. Far more of our planet's population live in poverty than out of it, but we all started there historically. America, Canada and Australia were largely (Caucasian) peopled by the poor, criminal and indentured. While there is much to be sorry for about how we went about it, we have all collectively managed to get around several giant wars, plagues, financial crashes and greedy pirates - all of whom are likely with us forever.
So here we are, having tasted the best and worst results of our own behaviour. We'll figure this out, too. 175 years ago nobody knew what recycling meant. Now its mandated by bureaucracies- the most inert of all social structures. In the meantime, gold is going higher - it can't help it when everyone is printing more money. Production is down year-on-year for the last several, and nobody trusts their politicians. I believe that things bode well for miners. We're just having a hiccough right now.

Wingfong said...

Hi Mike and Chillby
I am in the gold will do well, things will bode well for gold miners and gold will not fall below $1000 camps too.
Besides all the many fashionable reasons advanced by western writers in western media, here are some others out from China:-
1) Growth in jewelry consumption and gold investments resulting support for a rising gold price requires only moderate economic growth and household incomes in China and neighbouring countries. To them, gold is real wealth even their warring enamies will accept and owning gold is a symbol of being wealthy. Inflation and financial market uncertainties are not what drive them. Of course if they are present, it will further strengthen the drive.
2) From 1949 to 1997, gold ownership in China was banned. The law was repealed 3 yrs ago and since then private gold owning and gold investments were legalised.
3) This yr Chinese gold comsumption is 100 ton. In my opinion, this is all imported gold. The gold mined in China are all bought up by the Chinese Centrtal Bank . . con't

Wingfong said...

4) The secretary general of the chinese gold association commented that China may want to hold a toatl of 5000 tons (current official holding is 1054 tons) in its central bank reserve - better use x2, x3 this publicly mentioned quantity. Further, assuming the USA still has its 8134 ton of gold. In my opinion, exceeding this figure is highly symbolic to the chinese
5) Gold ETFs and other gold related investment vehicles are yet to be born in China. Be informed they were being studied. As you are awared of the appetiate of the American GLD,it is not difficult to figure out how much gold will be sucked up by a Chinese GID equivalent when it makes its debut.
6) Whether by coincidence or by design, it is clear that
a) the US official stand is anti-gold
b) the Chinese official stand is pro-gold (own gold to be precise)