(excluding costs related to development, exploration, etc., also excluding an adjustment to cover the operating costs associated with producing the 667 monthly Deutsche Bank ounces but maybe that gets partly offset by the $9M cash still in escrow (and should come available in the next 2 or 3 months if all continues to go well) coupled with the US$88 price participation cash we receive for each Deutsche Bank ounce)
The majority of the Lamaque operating costs should be in Canadian dollars (especially labour).
The Peruvian operation provides sufficient gross revenues to cover both the Peruvian costs (San Juan Operation and Peruvian office in Lima) and the Corporate Head Office US dollar expenses.
We haven`t had a Canadian operation for a while. The last time we were producing heavy in Canada (during the peak open pit days) we only had a gold price of around C$500 - C$600 to work with.
We now have the opportunity to start up Lamaque knowning we have C$1,328 gross revenue per ounce produced to work with, with the majority of our cost to produce the ounces paid out in Canadian dollars.
Tuesday, August 31, 2010
Sunday, August 29, 2010
Community parade by Century Mining Peru
Good idea! Good relations building activity with both the town and the workers. Century should post this type of video/info on Century`s main website (I stumbled onto this person`s You Tube video otherwise we have never known about this positive community event). Century should show the investment community all of the great support Century provides to the towns people down there. Since Century took over, Century has provided and paid for many essential services for the community over the years.
The parade was simple, but I imagine fun for the kids. It would be especially enjoyable since many in the audience likely have family members (i.e. dad) that work at the Mine. I notice a Veta Jessica sign. That`s one of our veins currently in production. Perhaps the sign is to indicate that the marchers (in that part of the parade) work at Veta Jessica. Also, at one part of the parade the rescue team demonstated a rescue/first aid situation (as part of the parade). I also notice that a couple of ladies in the final truck tossing over candies to the kids. One last observation: I noticed how serious every miner took their marching - no goofing off or laughing or playing around or anything like that. That was very impressive. It showed that this is something they really wanted to do for the community. It also shows that they are very proud of their trade and the job they do to bring success of the mine.
From Mr. Hulley`s comments in the last conference all, it sounds like relations with the workers have improved at Lamaque also (I think he said that relations are now very good and that they now understand the cultural differences). I can see Lamaque also doing and sponsoring community events in Val d`Or also.
http://www.youtube.com/watch?v=3l3I4eB8aSQ
The parade was simple, but I imagine fun for the kids. It would be especially enjoyable since many in the audience likely have family members (i.e. dad) that work at the Mine. I notice a Veta Jessica sign. That`s one of our veins currently in production. Perhaps the sign is to indicate that the marchers (in that part of the parade) work at Veta Jessica. Also, at one part of the parade the rescue team demonstated a rescue/first aid situation (as part of the parade). I also notice that a couple of ladies in the final truck tossing over candies to the kids. One last observation: I noticed how serious every miner took their marching - no goofing off or laughing or playing around or anything like that. That was very impressive. It showed that this is something they really wanted to do for the community. It also shows that they are very proud of their trade and the job they do to bring success of the mine.
From Mr. Hulley`s comments in the last conference all, it sounds like relations with the workers have improved at Lamaque also (I think he said that relations are now very good and that they now understand the cultural differences). I can see Lamaque also doing and sponsoring community events in Val d`Or also.
http://www.youtube.com/watch?v=3l3I4eB8aSQ
Friday, August 27, 2010
Dear God, Man!
So is "long stope" an oxymoron or an anatomical appendage? (and I always thought it was a hole in the ground...)
So does anyone have any suggestions for who would be the best new CEO we could hire? I vote for Bill Read from Gold Resource Corp (or else Chet Idzisek.) I know they're taken, but its only a wish!
So does anyone have any suggestions for who would be the best new CEO we could hire? I vote for Bill Read from Gold Resource Corp (or else Chet Idzisek.) I know they're taken, but its only a wish!
Wednesday, August 25, 2010
Long-hole open stope mining (LHOS) - general diagram
Recap of low-profile room and pillar mining in the Lamaque no. 2 flats:
As mentioned, the low-profile room and pillar mining we are currently performing in the Lamaque no. 2 area should be somewhat similar to the last animation video, especially with regards to the mechanization aspect. It is huge progress to be able to move away from jacklegs and slushers (though, using them in San Juan is still likely an improvement from whatever is currently being used at San Juan). We are mining in Val d`Or at a very good point in time. Val d`Or is populated with plenty of narrow vein ore bodies. This low-profile equipment sounds ``revolutionary`` and we are now the North American mining leader (it may open up doors for us once we are ready to grow the business). The abilities of these low-profile jumbo drills, scoops and trucks to travel deep into the mineralized areas completely changes the level of economic viability of mining these types of ore bodies:
1) Major efficiency gains with switching from jacklegs to jumbos.
2) Double the blasting capabilities in some cases (I guess partly due to the efficiency of the jumbos coupled with the abilities to quickly transport larger amounts of material away with the low-profile scoops and trucks being able to move closer to the mineralized zone).
3) Major efficiency gains from eliminating the slusher step.
4) Major increase in transported load from the scoops and trucks reaching closer to the the minerialzed zone coupled with the low-profile equipment designed in a manner which allows for greater transported load per carry.
5) Speed of the new low-profile equipment in maneuvering through tight underground quarters.
We are seeing very solid results so far. We are already up to 1,000 tpd primarily via the low-profile equipment in the Lamaque 2 area. In H1 2008, we had only made it up to about 200 tpd during the test pilot underground start up phase (with mainly a jackleg mining approach), prior to being left frozen from the global financial crisis.
LHOS mining of Bedard Dyke and North Wall:
Unfortunately, I am not able to find a good animation video (or otherwise) on long-hole open stope mining. I have provided a link of the World Gold Council diagram of long-hole stoping (located in the middle of the linked page). I had posted it on the blog a couple of times previously. This seems to be the only good long-hole stoping diagram on the internet, or so it seems. One can probably get a good appreciation of the development work going on at the Bedard Dyke by glancing at this diagram and relating it back to the conference call.
Per Adrian McNutt in the last conferance call:
1) They have already driven across the dyke.
2) They started the top crosscut (that`s likely the access area that says ``drill access`` on the diagram).
3) They are ramping down to the next level to set up the bottom fill for the stope (as it relates to the diagram, this likely means (once they ramp down to the next level) they will establish the ``undercut``, ``loading crosscut`` and the ``transport drift``.
4) They will put in the ventilation infrastructure also.
5) They will then initiate drilling and blasting (eventually).
http://www.trustingold.com/production/mining-methods/
As mentioned, the low-profile room and pillar mining we are currently performing in the Lamaque no. 2 area should be somewhat similar to the last animation video, especially with regards to the mechanization aspect. It is huge progress to be able to move away from jacklegs and slushers (though, using them in San Juan is still likely an improvement from whatever is currently being used at San Juan). We are mining in Val d`Or at a very good point in time. Val d`Or is populated with plenty of narrow vein ore bodies. This low-profile equipment sounds ``revolutionary`` and we are now the North American mining leader (it may open up doors for us once we are ready to grow the business). The abilities of these low-profile jumbo drills, scoops and trucks to travel deep into the mineralized areas completely changes the level of economic viability of mining these types of ore bodies:
1) Major efficiency gains with switching from jacklegs to jumbos.
2) Double the blasting capabilities in some cases (I guess partly due to the efficiency of the jumbos coupled with the abilities to quickly transport larger amounts of material away with the low-profile scoops and trucks being able to move closer to the mineralized zone).
3) Major efficiency gains from eliminating the slusher step.
4) Major increase in transported load from the scoops and trucks reaching closer to the the minerialzed zone coupled with the low-profile equipment designed in a manner which allows for greater transported load per carry.
5) Speed of the new low-profile equipment in maneuvering through tight underground quarters.
We are seeing very solid results so far. We are already up to 1,000 tpd primarily via the low-profile equipment in the Lamaque 2 area. In H1 2008, we had only made it up to about 200 tpd during the test pilot underground start up phase (with mainly a jackleg mining approach), prior to being left frozen from the global financial crisis.
LHOS mining of Bedard Dyke and North Wall:
Unfortunately, I am not able to find a good animation video (or otherwise) on long-hole open stope mining. I have provided a link of the World Gold Council diagram of long-hole stoping (located in the middle of the linked page). I had posted it on the blog a couple of times previously. This seems to be the only good long-hole stoping diagram on the internet, or so it seems. One can probably get a good appreciation of the development work going on at the Bedard Dyke by glancing at this diagram and relating it back to the conference call.
Per Adrian McNutt in the last conferance call:
1) They have already driven across the dyke.
2) They started the top crosscut (that`s likely the access area that says ``drill access`` on the diagram).
3) They are ramping down to the next level to set up the bottom fill for the stope (as it relates to the diagram, this likely means (once they ramp down to the next level) they will establish the ``undercut``, ``loading crosscut`` and the ``transport drift``.
4) They will put in the ventilation infrastructure also.
5) They will then initiate drilling and blasting (eventually).
http://www.trustingold.com/production/mining-methods/
Tuesday, August 24, 2010
GBG
There's an interesting read on Great Basin Gold on the "Seeking Alpha" blog today, in the Gold section. I find it a good description of what one's timing expectations ought to resemble when investing in miners.
Public Float Figure
I just wanted to correct the figure that I gave before about the public float. Currently the public float is only about 85million shares. 80-90mil and there are 412mil out if rights and warrants were to be exercised.
Monday, August 23, 2010
My thoughts
Well People, At this point in the game we have the Russian’s to give us cash when we need it and we are now making positive numbers in most recent statements. Much of the risk has been eliminated from century as we get into the late Fall I am convinced that we will see the share price appreciate greatly with financial's and more mine development things should go well. To be honest there is not much holding us back at this point, most major firm still very bullish on gold which is obviously a plus for us. Now if we can bring in a half decent CEO we will be good to go. Victors 5 Bagger statement on BNN was very conservative and we back up those figures as-well. I simply can’t see what could hold this stock back from this point forward so I will continue to buy as long as we stay under .70. If you compare this stock to other that are very similar some are trading in the 3-5$ range which brings up the question why our stock is so low currently. I blame the CTO that we had, that definitely knocked the wind out of us but I think we will be fine for the future. There was some talk about Shares outstanding and I just wanted to say that the actual Public float is less than 170million. The other shares are held by insiders. Also, the fact that we have had huge reads on this wall means that we have been attracting some attention from the public and new investors. At this point in time we consider Century to be a very good play and none the less a risk but a calculated risk. We consider it a buy with a target of a buck for the near term.
If people have additional comments please feel free to post them. We need to get more discussion going in here!!!
Animation video example of mechanized Room and Pillar Mining
Firstly, to emphasize the improvement, I thought I would show a quick (38 second) video of a jackleg miner hard at work. Jacklegs served Lamaque well for 70 years. However, there is now much more superior technology available on the market, especially for narrow veins.
http://www.youtube.com/watch?v=5pqVbcqbsaM&feature=related
Now, this next video should be somewhat similar to what our low-profile room and pillar mining approach would look like in the Lamaque 2 mining area (flat veins). You can see the jumbo drills, the blasting, the scooptram loaders and the low-profile trucks. You can see the size of the load being moved and the quickness of the equipment during this very efficient process.
The company is saying that our new low-profile mechanized approach has been extremely successful. If such is the case then mining our Lamaque 2 zone should look somewhat similar to this video (once all of the workers have received proper training and further optimization of the new equipment is realized, and also once they expand more of the previously built tunnels from 6 ft to 6.5 ft - maybe it`s metres, I don`t remember). Keep in mind that they are likely still using some jacklegs and slushers until they receive more of the low-profile equipment. Also, they will always be a need for some jackleg use, especially for difficult areas (it will likely be only occasionally though). However, a very large majority of the room and pillar mining areas will eventually be using low-profile equipment.
http://www.youtube.com/watch?v=LzsUMXVm49I&feature=related
http://www.youtube.com/watch?v=5pqVbcqbsaM&feature=related
Now, this next video should be somewhat similar to what our low-profile room and pillar mining approach would look like in the Lamaque 2 mining area (flat veins). You can see the jumbo drills, the blasting, the scooptram loaders and the low-profile trucks. You can see the size of the load being moved and the quickness of the equipment during this very efficient process.
The company is saying that our new low-profile mechanized approach has been extremely successful. If such is the case then mining our Lamaque 2 zone should look somewhat similar to this video (once all of the workers have received proper training and further optimization of the new equipment is realized, and also once they expand more of the previously built tunnels from 6 ft to 6.5 ft - maybe it`s metres, I don`t remember). Keep in mind that they are likely still using some jacklegs and slushers until they receive more of the low-profile equipment. Also, they will always be a need for some jackleg use, especially for difficult areas (it will likely be only occasionally though). However, a very large majority of the room and pillar mining areas will eventually be using low-profile equipment.
http://www.youtube.com/watch?v=LzsUMXVm49I&feature=related
Sunday, August 22, 2010
Something to Consider
The title to this post was the subject of an email I received this weekend from a reader of the blog who has done some research into "Fail to Deliver Data" of Century shares in the US. His work certainly adds credence to theories of short selling and price manipulation of century shares. He suggested that I post his email and it follows:
I'm not a member of the CMN blog, but wish to present specific information rather than introduce it as a comment on some other topic.
Posting may not be necessary, as all I have to contribute is the following. It may be (and I think should be!) of interest to you or other members.
http://www.sec.gov/foia/docs/failsdata.htm
Frequently Requested FOIA Document:
Fails-to-Deliver Data
This page describes the contents and structure of the tables that follow. Here is a list I've extracted from the semi-monthly tables,showing the number of shares "failed-to-deliver" of CMNZF during April, May, June, and the first half of July. 2010. "Failure-to-deliver" is not invariably a sign of short selling, as the SEC notes. But several days in this period show quite large numbers of fails. Possibly some of you may be able to correlate these with specific events in the stock's recent history.
Wouldn't it be nice if the SEC would publish similar data on Canadian exchanges!
I've bought into Century just in the last few days, in a small way.I noted mention of (possible?) predatory short selling in a recent post on the Century blog and thought this might be of interest.
(A useful reference on the disastrous effects of naked short selling:
http://www.thesanitycheck.com/GettingStarted/tabid/73/Default.aspx
Hope this helps--
I'd like to say also, good work on the Blog. I think it's unique and very useful.
I'm not a member of the CMN blog, but wish to present specific information rather than introduce it as a comment on some other topic.
Posting may not be necessary, as all I have to contribute is the following. It may be (and I think should be!) of interest to you or other members.
http://www.sec.gov/foia/docs/failsdata.htm
Frequently Requested FOIA Document:
Fails-to-Deliver Data
This page describes the contents and structure of the tables that follow. Here is a list I've extracted from the semi-monthly tables,showing the number of shares "failed-to-deliver" of CMNZF during April, May, June, and the first half of July. 2010. "Failure-to-deliver" is not invariably a sign of short selling, as the SEC notes. But several days in this period show quite large numbers of fails. Possibly some of you may be able to correlate these with specific events in the stock's recent history.
Wouldn't it be nice if the SEC would publish similar data on Canadian exchanges!
I've bought into Century just in the last few days, in a small way.I noted mention of (possible?) predatory short selling in a recent post on the Century blog and thought this might be of interest.
(A useful reference on the disastrous effects of naked short selling:
http://www.thesanitycheck.com/GettingStarted/tabid/73/Default.aspx
Hope this helps--
I'd like to say also, good work on the Blog. I think it's unique and very useful.
How many shares are there?
Seems there are a lot of numbers out there concerning our #shares outstanding (most of the wrong ones mine, sadly)...my trading site shows 367M shares outstanding, with a little over 45M tied up in warrants and options. This conforms with what the website shows. I am clearly going to have to swear off any more late-night math. As well as I can tell, my error was in reading the total #shares traded this year...apologies to all.
This changes the valuation based on 1yr gross profit to $0.54/sh, and 7.10/sh LOM. I suppose one could regard these figures as an estimate of free cash flow per share, since they regard only (supposed) profits, without capex, dilution and the basic cutoff at 600.00/oz for costs. Add in book value per share, you get another .20/sh. As well, this is based solely on SJ and S/LM's current status.
At the current price, we are selling at 2.2X Book Value, which is absurdly low. I would expect this sort of valuation for a company who might have gold in the ground 15 years away from production. Best guess is we are around 7X sales, also very light. Let us keep crossed fingers for a new CEO that Bay Street will like. Things at the mine certainly look positive. AM and KH strike me as being very much on top of things.
This changes the valuation based on 1yr gross profit to $0.54/sh, and 7.10/sh LOM. I suppose one could regard these figures as an estimate of free cash flow per share, since they regard only (supposed) profits, without capex, dilution and the basic cutoff at 600.00/oz for costs. Add in book value per share, you get another .20/sh. As well, this is based solely on SJ and S/LM's current status.
At the current price, we are selling at 2.2X Book Value, which is absurdly low. I would expect this sort of valuation for a company who might have gold in the ground 15 years away from production. Best guess is we are around 7X sales, also very light. Let us keep crossed fingers for a new CEO that Bay Street will like. Things at the mine certainly look positive. AM and KH strike me as being very much on top of things.
Saturday, August 21, 2010
I would like to see C$10M in monthly Gross Revenue in the Dec - Feb timeframe
(Lamaque and San Juan combined)
C$10,000,000 monthly Gross Revenue equates to C$120,000,000 on a sustainable annualized basis
Tpd hit 1,000 in first half of August, primarily from Lamaque 2 alone.
Bedard Dyke development has been far advanced and long-hole Bedard Dyke mining is expected to start in early October.
Portal work on the North Wall started in July (likely 4 months ahead of schedule).
1) Lamaque
A Lamaque formula that would work:
*1,600 tpd (1,000 Lamaque 2, 400 Bedard Dyke, 200 North Wall)
*4.5 g/t grade (improvements with Lamaque 2 grade, and further improvements from blending with higher grade BD and NW)
*96% recovery
4.5 g/t, 1600 tpd, 96% recovery = 6,670 monthly Lamaque ounces
6,670 less 667 delivery to Deutsche Bank = 6,003 net ounces
6,003 * US$1,241 sustained gold price average * 1.04 exch = C$7,748,000 + C$61,000 monthly price participation on the DB ounces = C$7,809,000 monthly Lamaque Gross Revenue
2) San Juan
1,700 monthly ounces * US$1,241 * 1.04 exch = C$2,194,000
3) Century overall (Lamaque + SJ)
C$7,809,000 + C$2,194,000 = C$10,003,000 monthly Century Gross Revenue
If everything continues to move forward, it seems like a real possibility for January or February, or even December of this year.
C$10,000,000 monthly Gross Revenue equates to C$120,000,000 on a sustainable annualized basis
Tpd hit 1,000 in first half of August, primarily from Lamaque 2 alone.
Bedard Dyke development has been far advanced and long-hole Bedard Dyke mining is expected to start in early October.
Portal work on the North Wall started in July (likely 4 months ahead of schedule).
1) Lamaque
A Lamaque formula that would work:
*1,600 tpd (1,000 Lamaque 2, 400 Bedard Dyke, 200 North Wall)
*4.5 g/t grade (improvements with Lamaque 2 grade, and further improvements from blending with higher grade BD and NW)
*96% recovery
4.5 g/t, 1600 tpd, 96% recovery = 6,670 monthly Lamaque ounces
6,670 less 667 delivery to Deutsche Bank = 6,003 net ounces
6,003 * US$1,241 sustained gold price average * 1.04 exch = C$7,748,000 + C$61,000 monthly price participation on the DB ounces = C$7,809,000 monthly Lamaque Gross Revenue
2) San Juan
1,700 monthly ounces * US$1,241 * 1.04 exch = C$2,194,000
3) Century overall (Lamaque + SJ)
C$7,809,000 + C$2,194,000 = C$10,003,000 monthly Century Gross Revenue
If everything continues to move forward, it seems like a real possibility for January or February, or even December of this year.
Friday, August 20, 2010
Victor`s BNN session - from today
Victor talked briefly about Century at the 2:30 mark - ``at least 5 bagger from these levels``.
http://watch.bnn.ca/#clip338878
http://watch.bnn.ca/#clip338878
A nice little note about the 2008 permit
``The Lamaque Mine is currently permitted for 1,200 tonnes per day production which also includes the Northeast portion of the North Wall zone.``
That was a note from the January 2009 bankable Lamaque study that was prepared for Fortis Bank. It means that the 2008 initial 1,200 tpd permit gave us permission to mine the Northeast portion of the North Wall zone at anytime. It means that we can mine that particular part of the North Wall right now if we wanted to and if we had infrastructure (and portal) already established, regardless of when we receive the next permit. We just wouldn`t be able to use a long-hole stoping approach. The next permit is the one that provides approval to use long-hole stoping in both the Bedard Dyke and the North Wall zone mining areas.
Also of note, it appears to me as if the North Wall portal is positioned on the east side of the North Wall zone (on the side of our already existing permit) - unless they recently decided to change the plans.
It never hurts to have contingency mining approvals built into already established mining permits.
That was a note from the January 2009 bankable Lamaque study that was prepared for Fortis Bank. It means that the 2008 initial 1,200 tpd permit gave us permission to mine the Northeast portion of the North Wall zone at anytime. It means that we can mine that particular part of the North Wall right now if we wanted to and if we had infrastructure (and portal) already established, regardless of when we receive the next permit. We just wouldn`t be able to use a long-hole stoping approach. The next permit is the one that provides approval to use long-hole stoping in both the Bedard Dyke and the North Wall zone mining areas.
Also of note, it appears to me as if the North Wall portal is positioned on the east side of the North Wall zone (on the side of our already existing permit) - unless they recently decided to change the plans.
It never hurts to have contingency mining approvals built into already established mining permits.
Thursday, August 19, 2010
Chillbynalysis
Fellow Sufferers,
I am postulating a share value for the company based on the following assumptions:
143,115,743 shares currently outstanding
Life of mine at 13 years
600.00/oz gross profit per ounce
1,321,287 oz P&P x 100% recovery (allowing for some added ounces moving forward)
1,300,366 oz M&I x 80% recovery
3,305,904 oz Inferred x 60% recovery
(all numbers from website, except gross profit, which is pure conjecture)
P&P: 1,321,287oz x $600/oz = 792,772,200.00 total gross profit/life of mine (LOM)
M&I: 1,040,292oz x $600/oz = 624,175,680.00 """
Inferred: 1,983,542oz x 600/oz = 1,190,125,440.00 """
Total Gross Profit = 2,607,073,320.00/13 years = 200,544,101.00/year (makes no allowances for current period, obviously)
Minimum share value, based on one year's gross profit (200,544,101/143,115,743) = 1.40/share
LOM share value: 2,607,073,320/143,115,743 shares = 18.21/share
Certainly a lot can happen in 13 years. We'll probably locate a lot more gold on our other holdings. This is why I like this company, and why I'm not interested in shenanigators.
Hope everyone had a good day today.
I am postulating a share value for the company based on the following assumptions:
143,115,743 shares currently outstanding
Life of mine at 13 years
600.00/oz gross profit per ounce
1,321,287 oz P&P x 100% recovery (allowing for some added ounces moving forward)
1,300,366 oz M&I x 80% recovery
3,305,904 oz Inferred x 60% recovery
(all numbers from website, except gross profit, which is pure conjecture)
P&P: 1,321,287oz x $600/oz = 792,772,200.00 total gross profit/life of mine (LOM)
M&I: 1,040,292oz x $600/oz = 624,175,680.00 """
Inferred: 1,983,542oz x 600/oz = 1,190,125,440.00 """
Total Gross Profit = 2,607,073,320.00/13 years = 200,544,101.00/year (makes no allowances for current period, obviously)
Minimum share value, based on one year's gross profit (200,544,101/143,115,743) = 1.40/share
LOM share value: 2,607,073,320/143,115,743 shares = 18.21/share
Certainly a lot can happen in 13 years. We'll probably locate a lot more gold on our other holdings. This is why I like this company, and why I'm not interested in shenanigators.
Hope everyone had a good day today.
Victor scheduled to be on BNN tomorrow
``(subject to change)``
``August 20
Victor Goncalves, president, Equities and Economics Report
Focus: It's Mailbag Friday! BNN gets answers to your commodities-related email questions from Victor Goncalves, president, Equities and Economics Report.``
http://www.bnn.ca/commoditiesreport.aspx
I guess we will have to wait and see if he will discuss CMM tomorrow. It`s possibe that he could wait for a future BNN session to discuss CMM (perhaps once there is more news).
I found this April 25`10 note on his website:
``The initial target is for 1.50 and at that price I will re-evaluate it, Iºm really looking for this to be bigger than a SAN GOLD.``
I`m not sure how he feels now, but I have a feeling his views have not changed since April 25th. I say that because Century`s core fundamentals have not changed. I believe one of the reasons Victor likes Century so much is due to its ``no brainer`` fundamentals. I think Victor fully understands about delays with start up mines. His investment approach and his newsletter recommendations are both based on getting into the investement early and then having the patience to wait for the goals to be realized.
Also, I believe the reason Victor is looking for Century to eventually be bigger than San Gold is because Victor is expecting to realize huge success on 3 key fronts:
1) Mid-tier production ounce profile
2) Major exploration successes on existing properties (I think Victor is thinking what I`m thinking with regards to exploration potential in the Val d`Or area - as mentioned on the blog a number of times before I am expecting (as well as Century`s geologists) 2,000,000 bulk mineable ounces still remaining at depth of the combined Lamaque Main Plug and the West Plug, as well as a (brand new) mini Lamaque complex on our properties beyond the Lamaque borders, in addition to ounces in a number of other places around Lamaque and Val d`Or, never mind the significant exploration potential of Peru)
3) Aggressive M&A once the company has reached the right stage.
``August 20
Victor Goncalves, president, Equities and Economics Report
Focus: It's Mailbag Friday! BNN gets answers to your commodities-related email questions from Victor Goncalves, president, Equities and Economics Report.``
http://www.bnn.ca/commoditiesreport.aspx
I guess we will have to wait and see if he will discuss CMM tomorrow. It`s possibe that he could wait for a future BNN session to discuss CMM (perhaps once there is more news).
I found this April 25`10 note on his website:
``The initial target is for 1.50 and at that price I will re-evaluate it, Iºm really looking for this to be bigger than a SAN GOLD.``
I`m not sure how he feels now, but I have a feeling his views have not changed since April 25th. I say that because Century`s core fundamentals have not changed. I believe one of the reasons Victor likes Century so much is due to its ``no brainer`` fundamentals. I think Victor fully understands about delays with start up mines. His investment approach and his newsletter recommendations are both based on getting into the investement early and then having the patience to wait for the goals to be realized.
Also, I believe the reason Victor is looking for Century to eventually be bigger than San Gold is because Victor is expecting to realize huge success on 3 key fronts:
1) Mid-tier production ounce profile
2) Major exploration successes on existing properties (I think Victor is thinking what I`m thinking with regards to exploration potential in the Val d`Or area - as mentioned on the blog a number of times before I am expecting (as well as Century`s geologists) 2,000,000 bulk mineable ounces still remaining at depth of the combined Lamaque Main Plug and the West Plug, as well as a (brand new) mini Lamaque complex on our properties beyond the Lamaque borders, in addition to ounces in a number of other places around Lamaque and Val d`Or, never mind the significant exploration potential of Peru)
3) Aggressive M&A once the company has reached the right stage.
Adding up the crumbs
We get to participate a tiny bit in the 667 ounces delivered to Deutsche Bank each month (gold price between US$900 and US$988).
667 ounces * US$88 * 1.04 exch = C$61,000
We get C$61,000 each month (over the original US$33M financing amount).
Also, as mentioned yesterday, the gold price has risen above US$1,200. It is now US$1,232.
Applying this $32 increase to the analysis from yesterday (instead of $29) now gives us C$150,000 in funding above the US$1,200 gold price.
C$61,000 + C$150,000 = C$211,000
These collective bread crumbs should be sufficient to fund about 35 of our workers or 15% of our workforce at Lamaque, based only on today`s production levels.
Then we still have our original US$1,200 of the gold price. Against current Lamaque and San Juan ounces (with the Deutsche delivered ounces backed out) we are looking at C$5,620,000 in monthly gross revenue, above the C$211,000.
667 ounces * US$88 * 1.04 exch = C$61,000
We get C$61,000 each month (over the original US$33M financing amount).
Also, as mentioned yesterday, the gold price has risen above US$1,200. It is now US$1,232.
Applying this $32 increase to the analysis from yesterday (instead of $29) now gives us C$150,000 in funding above the US$1,200 gold price.
C$61,000 + C$150,000 = C$211,000
These collective bread crumbs should be sufficient to fund about 35 of our workers or 15% of our workforce at Lamaque, based only on today`s production levels.
Then we still have our original US$1,200 of the gold price. Against current Lamaque and San Juan ounces (with the Deutsche delivered ounces backed out) we are looking at C$5,620,000 in monthly gross revenue, above the C$211,000.
I guess Deutsche Bank must like our prepaid deal - they just did a similar one with Petaquilla
I suppose what`s there not to like, right. Deutsche Bank is rolling in the dough (profits) from the ounces we deliver to them on a monthly basis. I guess it`s a win win as it was key to us getting Lamaque going again. It`s just a matter of time until Century shareholders realize greater benefits also.
Perhaps Deutsche Bank`s prepaid gold deal with Century was a first trial into this specific type of gold venture for their trading division. Maybe they concluded the Century deal to be a successful thus far, hence they have moved this model forward with this additional deal with Petaquilla.
Anyway, here is only part of the Petaquilla NR:
Aug 19, 2010 13:27 ET
Petaquilla Signs Prepaid Forward Gold Purchase Agreement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 19, 2010) - Petaquilla Minerals Ltd. (TSX:PTQ)(OTCBB:PTQMF)(FRANKFURT:P7Z) (the "Company") today announced that it has entered into a definitive Forward Gold Purchase Agreement (the "Agreement") with Deutsche Bank, AG, London Branch ("Deutsche Bank"), a major international bank with a large gold trading business. Subject to satisfaction of all closing conditions, Deutsche Bank will fund a US$45 million prepaid gold forward facility.
The facility is a forward contract to deliver 68,243 ounces of gold over a five year term. The schedule of gold payments is as follows: during the first eight (8) months of the term, 562 ounces per month; for the next eleven (11) months of the term, 1,125 ounces per month; for the next twenty-four (24) months, 1,503 ounces per month; for the final seventeen (17) months of the term, 900 ounces per month. The 68,243 ounces of gold that have been committed under this gold facility represent approximately 6.3% of the Company's total gold resources at its wholly-owned Molejon Gold Project in Panama.
Certain components within the Agreement, such as gold pricing valuations, will be finalized at the time of prepayment, which is anticipated to occur on August 25, 2010. As such, a subsequent news release regarding the Agreement will be issued upon the date of prepayment with the minimum and maximum gold prices per ounce expressed. There is no interest payable to the bank during the term of the facility. The Company will pay upfront structuring and finders' fees in the aggregate sum of US$2,250,000.
Perhaps Deutsche Bank`s prepaid gold deal with Century was a first trial into this specific type of gold venture for their trading division. Maybe they concluded the Century deal to be a successful thus far, hence they have moved this model forward with this additional deal with Petaquilla.
Anyway, here is only part of the Petaquilla NR:
Aug 19, 2010 13:27 ET
Petaquilla Signs Prepaid Forward Gold Purchase Agreement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 19, 2010) - Petaquilla Minerals Ltd. (TSX:PTQ)(OTCBB:PTQMF)(FRANKFURT:P7Z) (the "Company") today announced that it has entered into a definitive Forward Gold Purchase Agreement (the "Agreement") with Deutsche Bank, AG, London Branch ("Deutsche Bank"), a major international bank with a large gold trading business. Subject to satisfaction of all closing conditions, Deutsche Bank will fund a US$45 million prepaid gold forward facility.
The facility is a forward contract to deliver 68,243 ounces of gold over a five year term. The schedule of gold payments is as follows: during the first eight (8) months of the term, 562 ounces per month; for the next eleven (11) months of the term, 1,125 ounces per month; for the next twenty-four (24) months, 1,503 ounces per month; for the final seventeen (17) months of the term, 900 ounces per month. The 68,243 ounces of gold that have been committed under this gold facility represent approximately 6.3% of the Company's total gold resources at its wholly-owned Molejon Gold Project in Panama.
Certain components within the Agreement, such as gold pricing valuations, will be finalized at the time of prepayment, which is anticipated to occur on August 25, 2010. As such, a subsequent news release regarding the Agreement will be issued upon the date of prepayment with the minimum and maximum gold prices per ounce expressed. There is no interest payable to the bank during the term of the facility. The Company will pay upfront structuring and finders' fees in the aggregate sum of US$2,250,000.
Watch out for this guy (off-topic)
An article in today's Vancouver Sun, "Self-Professed Whiz Trader..." by David Baines...Avoid business with Adam Keller.
Wednesday, August 18, 2010
further fashion comment
If there are wash sales happening, anyone doing that would be caught out easily. Manipulating a company with as many shares out as we have would require one extremely wealthy person with numerous corporate identities (still easily caught), or several participants with a plan (and a lot of money, and much more difficult to catch).
The easiest way to trace this is to see who it is that is dropping us so hard in the premarket. Start there, and the trail will, if it is there, become clear. For us, its a question of getting someone with the license to examine this to have a look.
I have to take Carib's point as being as likely to be right as mine. I do think, however, that the issue bears scrutiny, and I think we ought to do what we can to limit share availability to the shorts.
The easiest way to trace this is to see who it is that is dropping us so hard in the premarket. Start there, and the trail will, if it is there, become clear. For us, its a question of getting someone with the license to examine this to have a look.
I have to take Carib's point as being as likely to be right as mine. I do think, however, that the issue bears scrutiny, and I think we ought to do what we can to limit share availability to the shorts.
2010 Trading summary
Based on the trading summary for January to July this year, it is pretty difficult to make a case for share price manipulation or shorting and without hard evidence, the Securities Commissions will dsmiss any complaints. Canaccord and Anonymous were huge net sellers in 2008 and 2009 and it was resonable to conclude that they were selling shares they never owned. But since Century began issuing millions of shares for debt settlements, the source of any large selling could be attributed to the selling of shares not acquired in the market. These are a few of the shares-for-debt deals:
MRI - 3,571,429
IQ (Investissement Quebec) - 5,000,000
14-cent PP Sept 09 - 7,857,143
Shares to creditors - 5,265,472
(Click to Enlarge)
MRI - 3,571,429
IQ (Investissement Quebec) - 5,000,000
14-cent PP Sept 09 - 7,857,143
Shares to creditors - 5,265,472
(Click to Enlarge)
These are the August numbers to date:
Stockwatch
For those interested in having a look at who's doing what during regular trading hours, Stockwatch has a free 30 day subscription that allows you to see individual trades, big house totals etc. With the right subscription, you can get pre-market tier-2 and really good in-depth, real time trading information.
Gold price, as a gold producer
Monthly production rate at Lamaque = 3,500 ounces (@ 1,000 tpd, 3.8 g/t, 96% recv)
Monthly production rate at San Juan = 1,670 ounces
3,500 + 1,670 = 5,170 ounces, current rate for company overall
5,170 less 667 ounces paid to Deutsche Bank = 4,503 avail. to Century
Current gold price = US$1,229
US$29 increase in gold price from the recent US1,200 level
4,503 ounces * US$29 * 1.04 exch = C$135,810
A sustained $29 increase in the gold price, as a gold producer, provides compensation funding for about 22 of our workers or 7 - 10% of our Lamaque workforce.
If the gold price goes to US$1,300 by Y/E this year (as even the mainstream white collar cr____als are forecasting, even Goldman Sachs) then that $100 increase alone should provide compensation funding for around 78 of our workers or maybe 30% of our Lamaque workforce.
With long-hole stope mining at the Bedard Dyke cranked up come December (launch expected in October), with the potential of 5,800 ounces (@ 1,400 tpd, 4.5 g/t, 96% recv.) at Lamaque and 1,670 at San Juan we could see 7,470 ounces in December for company overall (excluding what the North Wall coming online can do for our production ounce totals in 2010). This level of production with the $100 increase in gold price can (alone) provide funding for 118 of our workers or 50% of our Lamaque workforce. This is completely aside from the original US$1,200 per ounce in Gross Revenue we will get from December`s production ounces.
Monthly production rate at San Juan = 1,670 ounces
3,500 + 1,670 = 5,170 ounces, current rate for company overall
5,170 less 667 ounces paid to Deutsche Bank = 4,503 avail. to Century
Current gold price = US$1,229
US$29 increase in gold price from the recent US1,200 level
4,503 ounces * US$29 * 1.04 exch = C$135,810
A sustained $29 increase in the gold price, as a gold producer, provides compensation funding for about 22 of our workers or 7 - 10% of our Lamaque workforce.
If the gold price goes to US$1,300 by Y/E this year (as even the mainstream white collar cr____als are forecasting, even Goldman Sachs) then that $100 increase alone should provide compensation funding for around 78 of our workers or maybe 30% of our Lamaque workforce.
With long-hole stope mining at the Bedard Dyke cranked up come December (launch expected in October), with the potential of 5,800 ounces (@ 1,400 tpd, 4.5 g/t, 96% recv.) at Lamaque and 1,670 at San Juan we could see 7,470 ounces in December for company overall (excluding what the North Wall coming online can do for our production ounce totals in 2010). This level of production with the $100 increase in gold price can (alone) provide funding for 118 of our workers or 50% of our Lamaque workforce. This is completely aside from the original US$1,200 per ounce in Gross Revenue we will get from December`s production ounces.
Clothes for the Naked
Let's roll, ladies and Gentlemen.
We have listed our shares for sale at 4.00. Let's run 'em out into the sunlight, shall we?
We have listed our shares for sale at 4.00. Let's run 'em out into the sunlight, shall we?
Tuesday, August 17, 2010
Today's Trading
Today Canaccord handed the ball off to Anonymous; how many times have we seen that before in the last few years. To answer bigjohn's question - could this be shorting? It certainly could be. Pay no attention to the official short numbers for CMM or any TSX-listed stock. Naked shorting is rampant and not reported.
However there could still be a lot of shares out there from debt settlements and previous financings. Could PK be selling? I highly doubt it; she's not hurting for money after being paid $1.2 million in 2009 and she just received another $1 million to retire for "personal reasons". She once said that fair value for Century shares was in the $6 - $7 range; I don't think she is willing to part with them now for 40 cents.
Why shares are falling while gold goes up
I don't recall if this is for Mike or Blevit, but its worth a read anyway - and I won't be able to hyperlink, but here it is if you're interested:
http://commentaryandanalysis.mining.com/2010/07/14/buy-gold-buy-silver-and-have-faith/
http://commentaryandanalysis.mining.com/2010/07/14/buy-gold-buy-silver-and-have-faith/
Article: ``Quebec Gold Mines`` (it mentions Century briefly)
Click on the link to view the full article.
http://www.thestreet.com/newsanalysis/metals-and-mining/10837469.html
``Century Mining Corporation (CVE:CMC) is a junior gold producer holding strategic land positions in Canada, United States and Peru. The company has eight properties consisting of 89 claims and seven mining leases covering an area of 2,151 hectares coincident with the Sigma-Lamaque Limited Partnership asset acquisition in the Val-d'Or area. The Lamaque mining operation has 1.14 million ounces of proven gold reserves and the company has estimated the average cash cost from between $450 to $500 per ounce with the expectation of eleven years of production from the near-production mine.``
http://www.thestreet.com/newsanalysis/metals-and-mining/10837469.html
``Century Mining Corporation (CVE:CMC) is a junior gold producer holding strategic land positions in Canada, United States and Peru. The company has eight properties consisting of 89 claims and seven mining leases covering an area of 2,151 hectares coincident with the Sigma-Lamaque Limited Partnership asset acquisition in the Val-d'Or area. The Lamaque mining operation has 1.14 million ounces of proven gold reserves and the company has estimated the average cash cost from between $450 to $500 per ounce with the expectation of eleven years of production from the near-production mine.``
2 encouraging signs from Management
1) Transparency
I like the way Hulley presented the situation in the NR and the conference call. He was up front about the mine challenges faced at Lamaque in the first 7 months (which were all typical start up mine challenges) and his explanations of the actions taken by Century. As best I can tell, there were no game changing challenges.
Actually, even if I might be alone in this thinking, I am actually very impressed with the Lamaque start up thus far.
The one area I am most disappointed in is the lack of Bedard Dyke bulk sample tonnage going to the mill at end of July. I was under the impression that they could begin grabbing ore from the mineralized area fairly quickly, even before development of the long-hole stope itself. Once they secured the portal and gained access to the mineralized area, I fully expected them to begin sending Bedard Dyke bulk sample ore to the mill for processing. Perhaps they will begin soon, as they are now working in the mineralized zone.
I also think the production targets were too aggressive for year 1, due perhaps to not leaving sufficient time allotments for typical start up and development issues. However, this does not mean the overall start up plan was flawed (see below, I actually like the start up plan a lot).
Otherwise, I like how things are progressing so far. Here are just some of the positives (off the top of my head):
*As mentioned, I actually like the start up plan a lot - it was well thought out (going after near-surface ore - start with the most advanced Lamaque 2, while developing Bedard Dyke with excellent drill intercepts and bulk mineable with long-hole mining, and then transitioning to the North Wall which requires a bit more developing)
*I loved the concept of low-profile equipment for the flats the first time I heard the description of what it could do. It has changed how they perform room and pillar mining in the flats (with narrow veins). Anytime you can go from labour intensive jacklegs and slushers over to much more mechanized bulkier mining, IT`S A GREAT MOVE! It sounds like things are working really good so far (everything they thought it would be). However, as with anything new (even great things), there is a learning curve and optimization period. Heavy training is happening right now. Also, they have had to expand some areas of the already established tunnels from 6 ft to 6.5 ft to accomodate the size and quickness of the new low profile equipment.
*No issues with crusher replacement and restart of the milling circuit.
*Excellent gold recovery rate of 96.5%.
*Excellent near-surface drill results for the Bedard dyke.
*They are well into the development of the initial Bedard Dyke long-hole stope. I personally was not expecting long-hole mining until October-November timeframe due to the 150 day period between permits that I have discussed many times on the blog. As such, I would be pleased if they are able to actually begin long-hole mining in early October.
*I`m very pleased to hear that they have started working on the North Wall portal. As mentioned before, I wasn`t expecting any development work on the North Wall until Q4 and I wasn`t expecting any North Wall production until early January 2011. With portal work having started in July, it`s possible that we might get some North Wall production ounces in 2010.
*I am actually not as disappointed with the Lamaque 2 grade as most people appear to be. Per Adrian, the Lamaque 2 reserves grade is coming in as expected. This likely means that the grade for the core Lamaque 2 area is in the 5.0 g/t area. They are discovering more economical ore (non-reserves) areas and also the reserves stopes to be stronger than expected (with longer stope life). This is actually a very positive development. The grades are lower than grades in the reserves areas, but they are economical. Adrian also feels that they will be able to increase the grades in these areas over time. Also bringing the Lamaque 2 average overall grade lower is the mineralized development material. This material they are processing is economical, with grades above 1.0 g/t and located near surface. No point wasting this material if it`s economical and can give us gold ounces at US$1225 gold. I think Lamaque 2 is delivering well, even beyond original tonnage expectations. I think its performance looks less pleasing to some (due to the lower blended grade) because it is pretty much carrying all of the load for Lamaque, including having to compensate for the Bedard Dyke bulk samples not being prominent as yet (with its higher grades, to balance off the overall average). I think Lamaque 2 started slowly (party due to the equipment delivery delay) but I really like how it has performanced in the last 2.5 months.
2) Management appears to want to make this work in the public markets
I think delivering the Q2 financials 18 days before they are/were actually due is a huge statement. Finskiy would have never allowed that action to occur if he had intentions of suppressing the share price. I think it`s a very meaningful signal that he is sticking to his original plan of using Century as a vehicle to become a significant player in the gold mining space, in the public markets.
In conclusion, I commend Finskiy, Scola and Hulley for stepping up to the plate like they have the last few days. I don`t think we are going to reach our goals overnight, but I do think we are on the right track. I don`t think Century`s share price is reflective of all the positives. I would like to see Hulley, IR and Century`s management in general continue to educate the market. I think delivery is obviously very important but I also think educating the market is critical also. I would like to see Century provide consistent updates and education to the market, be it via the monthly updates or some other form. I think keeping the market and shareholders in the dark for long stetches at a time is a big mistake, especially during this absolutely critical development period.
I like the way Hulley presented the situation in the NR and the conference call. He was up front about the mine challenges faced at Lamaque in the first 7 months (which were all typical start up mine challenges) and his explanations of the actions taken by Century. As best I can tell, there were no game changing challenges.
Actually, even if I might be alone in this thinking, I am actually very impressed with the Lamaque start up thus far.
The one area I am most disappointed in is the lack of Bedard Dyke bulk sample tonnage going to the mill at end of July. I was under the impression that they could begin grabbing ore from the mineralized area fairly quickly, even before development of the long-hole stope itself. Once they secured the portal and gained access to the mineralized area, I fully expected them to begin sending Bedard Dyke bulk sample ore to the mill for processing. Perhaps they will begin soon, as they are now working in the mineralized zone.
I also think the production targets were too aggressive for year 1, due perhaps to not leaving sufficient time allotments for typical start up and development issues. However, this does not mean the overall start up plan was flawed (see below, I actually like the start up plan a lot).
Otherwise, I like how things are progressing so far. Here are just some of the positives (off the top of my head):
*As mentioned, I actually like the start up plan a lot - it was well thought out (going after near-surface ore - start with the most advanced Lamaque 2, while developing Bedard Dyke with excellent drill intercepts and bulk mineable with long-hole mining, and then transitioning to the North Wall which requires a bit more developing)
*I loved the concept of low-profile equipment for the flats the first time I heard the description of what it could do. It has changed how they perform room and pillar mining in the flats (with narrow veins). Anytime you can go from labour intensive jacklegs and slushers over to much more mechanized bulkier mining, IT`S A GREAT MOVE! It sounds like things are working really good so far (everything they thought it would be). However, as with anything new (even great things), there is a learning curve and optimization period. Heavy training is happening right now. Also, they have had to expand some areas of the already established tunnels from 6 ft to 6.5 ft to accomodate the size and quickness of the new low profile equipment.
*No issues with crusher replacement and restart of the milling circuit.
*Excellent gold recovery rate of 96.5%.
*Excellent near-surface drill results for the Bedard dyke.
*They are well into the development of the initial Bedard Dyke long-hole stope. I personally was not expecting long-hole mining until October-November timeframe due to the 150 day period between permits that I have discussed many times on the blog. As such, I would be pleased if they are able to actually begin long-hole mining in early October.
*I`m very pleased to hear that they have started working on the North Wall portal. As mentioned before, I wasn`t expecting any development work on the North Wall until Q4 and I wasn`t expecting any North Wall production until early January 2011. With portal work having started in July, it`s possible that we might get some North Wall production ounces in 2010.
*I am actually not as disappointed with the Lamaque 2 grade as most people appear to be. Per Adrian, the Lamaque 2 reserves grade is coming in as expected. This likely means that the grade for the core Lamaque 2 area is in the 5.0 g/t area. They are discovering more economical ore (non-reserves) areas and also the reserves stopes to be stronger than expected (with longer stope life). This is actually a very positive development. The grades are lower than grades in the reserves areas, but they are economical. Adrian also feels that they will be able to increase the grades in these areas over time. Also bringing the Lamaque 2 average overall grade lower is the mineralized development material. This material they are processing is economical, with grades above 1.0 g/t and located near surface. No point wasting this material if it`s economical and can give us gold ounces at US$1225 gold. I think Lamaque 2 is delivering well, even beyond original tonnage expectations. I think its performance looks less pleasing to some (due to the lower blended grade) because it is pretty much carrying all of the load for Lamaque, including having to compensate for the Bedard Dyke bulk samples not being prominent as yet (with its higher grades, to balance off the overall average). I think Lamaque 2 started slowly (party due to the equipment delivery delay) but I really like how it has performanced in the last 2.5 months.
2) Management appears to want to make this work in the public markets
I think delivering the Q2 financials 18 days before they are/were actually due is a huge statement. Finskiy would have never allowed that action to occur if he had intentions of suppressing the share price. I think it`s a very meaningful signal that he is sticking to his original plan of using Century as a vehicle to become a significant player in the gold mining space, in the public markets.
In conclusion, I commend Finskiy, Scola and Hulley for stepping up to the plate like they have the last few days. I don`t think we are going to reach our goals overnight, but I do think we are on the right track. I don`t think Century`s share price is reflective of all the positives. I would like to see Hulley, IR and Century`s management in general continue to educate the market. I think delivery is obviously very important but I also think educating the market is critical also. I would like to see Century provide consistent updates and education to the market, be it via the monthly updates or some other form. I think keeping the market and shareholders in the dark for long stetches at a time is a big mistake, especially during this absolutely critical development period.
Monday, August 16, 2010
Various items
I'd like to express my thanks to Carib for maintaining continuity. There seems to be a certain segment of the investing public who thrive on personal attacks, fear-mongering and other quasi-manipulative behaviour. A pity that the exchange admins don't have the manpower to sort these folks out of the mix. Its nice to respond to one once in awhile, just to sort out their inability to spell, read, write and especially to do arithmetic. I realize, though, that the sorting-out is only an exercise in self gratification: some folks simply prefer to rant on, and clearly have no care for whether they are taken seriously or not.
On a note about our share price: On 23 July, in the premarket, someone somewhere sold an enormous block of stock. We dove from around .46/sh to .38/sh and then recovered by the open. We have been averaging down ever since. Then, last Friday (or thereabout), we hit .38 on the bid. That has formed our support line since. Given our travel around the 200 day MA lately, I'm curious to see how we fare in the next 30 days. I haven't the data to support this other than as anecdote, but I see this in the charts quite a lot. There will be some trade, a seemingly meaningless spike or drop in the course of an ordinary trading day, and three weeks later that is where the stock is. It is also interesting to note that, once that price is reached, there is almost always a trend reversal (we can only hope!) So what does it mean for us?
Management has done, IMO, a great job of bringing the company along, though fumbles and successes, with rather distracted leadership (I can't imagine that the months leading to PK's departure were without some tumult at HQ). And here we are, moving along up the production curve, with our support dead on that 23 July drop, and little if any participation in the Autumn outfitting. If we do begin to experience some positive momentum, I believe that the company ought to fan that flame a little.
So what I think we need, despite the ever-present list of things to do at Lamaque and San Juan, is a distinct effort on management's part to get some positive momentum on the street, as well as at the mines. A PR event. Take all the analysts fishing, and leave the ones who won't play to swim home (just kidding!). This, to my mind, is as important to the company now as the gold. There are too many companies out there with no production, or just where we are, who are getting juiced. Staying focussed on the mine is obviously Job One. Putting some energy into the marketplace, right now, may just be one of the things that turns our charts around.
What do the rest of you think would make a good PR event for the company? I know what we do in my business to get attention, but that would be awfully expensive for a gold mine!
On a note about our share price: On 23 July, in the premarket, someone somewhere sold an enormous block of stock. We dove from around .46/sh to .38/sh and then recovered by the open. We have been averaging down ever since. Then, last Friday (or thereabout), we hit .38 on the bid. That has formed our support line since. Given our travel around the 200 day MA lately, I'm curious to see how we fare in the next 30 days. I haven't the data to support this other than as anecdote, but I see this in the charts quite a lot. There will be some trade, a seemingly meaningless spike or drop in the course of an ordinary trading day, and three weeks later that is where the stock is. It is also interesting to note that, once that price is reached, there is almost always a trend reversal (we can only hope!) So what does it mean for us?
Management has done, IMO, a great job of bringing the company along, though fumbles and successes, with rather distracted leadership (I can't imagine that the months leading to PK's departure were without some tumult at HQ). And here we are, moving along up the production curve, with our support dead on that 23 July drop, and little if any participation in the Autumn outfitting. If we do begin to experience some positive momentum, I believe that the company ought to fan that flame a little.
So what I think we need, despite the ever-present list of things to do at Lamaque and San Juan, is a distinct effort on management's part to get some positive momentum on the street, as well as at the mines. A PR event. Take all the analysts fishing, and leave the ones who won't play to swim home (just kidding!). This, to my mind, is as important to the company now as the gold. There are too many companies out there with no production, or just where we are, who are getting juiced. Staying focussed on the mine is obviously Job One. Putting some energy into the marketplace, right now, may just be one of the things that turns our charts around.
What do the rest of you think would make a good PR event for the company? I know what we do in my business to get attention, but that would be awfully expensive for a gold mine!
Today's Trading & other comments
As requested by Rhump, todays trades follow. Canaccord and BMO Nesbitt were the biggest sellers last week and Canaccord is continuing to lead the selling today.
I did remove two "Anonymous" posts yesterday because the first rule of posting here as shown on the header is that if you wish to comment on posts, you must use a unique name and that Anonymous posts are subject to deletion. I won't tolerate the likes of December3 using this blog to anonymously further their negative agenda. Stockhouse serves that purpose very well. Posting to this blog is a privilege, not a right. I really don't care about anonymous posters whining about censorship. That being said, dissenting views are welcome as long as they are respectful and are not anonymous.
The delay in non-blog member comments being posted today was because comment moderation was turned on and I didn't receive notification.
If you wish to post unmoderated comments and/or have your posts appear immediately, then you must become a blog member.
blevit, I have received your request for membership and will be sending an invitation shortly.
I did remove two "Anonymous" posts yesterday because the first rule of posting here as shown on the header is that if you wish to comment on posts, you must use a unique name and that Anonymous posts are subject to deletion. I won't tolerate the likes of December3 using this blog to anonymously further their negative agenda. Stockhouse serves that purpose very well. Posting to this blog is a privilege, not a right. I really don't care about anonymous posters whining about censorship. That being said, dissenting views are welcome as long as they are respectful and are not anonymous.
The delay in non-blog member comments being posted today was because comment moderation was turned on and I didn't receive notification.
If you wish to post unmoderated comments and/or have your posts appear immediately, then you must become a blog member.
blevit, I have received your request for membership and will be sending an invitation shortly.
Carib
If you wouldn't mind, sure would like to see the house positions for today August 16th.
Thanks! rhump
Thanks! rhump
Sunday, August 15, 2010
Some more thoughts
1) The new Lamaque targets are much more achievable for 2010 (after adjusting the figures to reflect the start up issues)
Again, we don`t know the exact current grade, but let`s use 3.8 g/t as the foundation grade and then build it up a tiny bit each month as the operation progresses in 2010 due to training and experience, further optimization, new equipment arrival (at some point) and ore feeds from additional areas (especially Bedard Dyke bulk samples and start up of long-hole mining) - the grade build up I am using is likely extremely conservative:
Jun - 4.37 g/t (actual)
Jul - 3.80 g/t (using the mid point of the initial start up grade range)
Aug - 3.80 g/t (using this as the go forward foundation grade)
Sep - 3.90 g/t
Oct - 4.10 g/t (long-hole mining of the Bedard Dyke expected to start)
Nov - 4.30 g/t
Dec - 4.50 g/t
Tonnes per day:
Mar - 115 tpd (actual)
Apr/May - 265 tpd (actual)
Jun - 450 tpd (actual)
Jul - 820 tpd (actual)
Aug - 1,000 tpd (almost at this level in the first half of August)
Sep - 1,100 tpd
Oct - 1,200 tpd (long-hole mining of the Bedard Dyke expected to start)
Nov - 1,300 tpd
Dec - 1,400 tpd
Produced ounces at Lamaque in 2010 (with 96% recovery going forward):
Mar - 0 ounces
Apr/May - 1,961 ounces (actual)
Jun - 1,870 ounces (actual)
Jul - 2,885 ounces (blind estimate using 3.8 g/t grade)
Aug - 3,500 ounces
Sep - 3,970 ounces
Oct - 4,550 ounces (long-hole mining of the Bedard Dyke expected to start)
Nov - 5,175 ounces
Dec - 5,800 ounces
Total, Lamaque 2010 (using the above assumptions) = 29,711 Ounces
Revised target range, Lamaque 2010 = 25,000 to 30,000 ounces
If all key drivers/enablers progress well for the balance of 2010 at Lamaque, especially long-hole mining at the Bedard Dyke effective October, we will be well positioned to achieve the revised 2010 target and to get a solid kick start into 2011 (and a hugely successful 2011 for Century Mining and its shareholders).
2) Our Mighty Mouse operation (San Juan) is still doing some heavy lifting for us - even despite the temporary inefficienies resulting from the shutdowns to accommodate upgrades and expansions. San Juan continues to handle our Corporate G&A costs while Lamaque is ramping up. It handled our $1,632,000 of Corporate G&A costs in Q2`10. Not many emerging gold producing companies can claim to have a little mine like San Juan to help out in this manner.
3) Start of a new era: Century trying to build a new reputation with the TSX, BCSC, Quebec Securities Regulators, the market, institutional investors, retail shareholders and everyone else I`ve missed. This is the first step in showing all of those groups why Century deserves (will eventually deserve) to be a TSX ``Main Board`` company (once we are ready to apply). The TSX `Main Board`` deadline for companies to file financials was mid August. The TSX Venture deadline is not until end of August.
This is only a baby step, but it`s a good first step on the way back respectibility.
Again, we don`t know the exact current grade, but let`s use 3.8 g/t as the foundation grade and then build it up a tiny bit each month as the operation progresses in 2010 due to training and experience, further optimization, new equipment arrival (at some point) and ore feeds from additional areas (especially Bedard Dyke bulk samples and start up of long-hole mining) - the grade build up I am using is likely extremely conservative:
Jun - 4.37 g/t (actual)
Jul - 3.80 g/t (using the mid point of the initial start up grade range)
Aug - 3.80 g/t (using this as the go forward foundation grade)
Sep - 3.90 g/t
Oct - 4.10 g/t (long-hole mining of the Bedard Dyke expected to start)
Nov - 4.30 g/t
Dec - 4.50 g/t
Tonnes per day:
Mar - 115 tpd (actual)
Apr/May - 265 tpd (actual)
Jun - 450 tpd (actual)
Jul - 820 tpd (actual)
Aug - 1,000 tpd (almost at this level in the first half of August)
Sep - 1,100 tpd
Oct - 1,200 tpd (long-hole mining of the Bedard Dyke expected to start)
Nov - 1,300 tpd
Dec - 1,400 tpd
Produced ounces at Lamaque in 2010 (with 96% recovery going forward):
Mar - 0 ounces
Apr/May - 1,961 ounces (actual)
Jun - 1,870 ounces (actual)
Jul - 2,885 ounces (blind estimate using 3.8 g/t grade)
Aug - 3,500 ounces
Sep - 3,970 ounces
Oct - 4,550 ounces (long-hole mining of the Bedard Dyke expected to start)
Nov - 5,175 ounces
Dec - 5,800 ounces
Total, Lamaque 2010 (using the above assumptions) = 29,711 Ounces
Revised target range, Lamaque 2010 = 25,000 to 30,000 ounces
If all key drivers/enablers progress well for the balance of 2010 at Lamaque, especially long-hole mining at the Bedard Dyke effective October, we will be well positioned to achieve the revised 2010 target and to get a solid kick start into 2011 (and a hugely successful 2011 for Century Mining and its shareholders).
2) Our Mighty Mouse operation (San Juan) is still doing some heavy lifting for us - even despite the temporary inefficienies resulting from the shutdowns to accommodate upgrades and expansions. San Juan continues to handle our Corporate G&A costs while Lamaque is ramping up. It handled our $1,632,000 of Corporate G&A costs in Q2`10. Not many emerging gold producing companies can claim to have a little mine like San Juan to help out in this manner.
3) Start of a new era: Century trying to build a new reputation with the TSX, BCSC, Quebec Securities Regulators, the market, institutional investors, retail shareholders and everyone else I`ve missed. This is the first step in showing all of those groups why Century deserves (will eventually deserve) to be a TSX ``Main Board`` company (once we are ready to apply). The TSX `Main Board`` deadline for companies to file financials was mid August. The TSX Venture deadline is not until end of August.
This is only a baby step, but it`s a good first step on the way back respectibility.
Saturday, August 14, 2010
Some thoughts
1) Nice little milestone here (from the Q2 M&A rpt, Outlook section):
``As of August 13, 2010, Lamaque underground ore production had reached close to 1,000 tonnes per day (tpd) and the mill is operating on a daily basis.``
We now seem to have enough ore to operate the mill efficiently on a daily basis. I think this is the first time in Century`s history for underground mining (without having to depend on stockpile ore). I think the last daily mill operation at Lamaque was 2007, but that was open pit mining.
2) Mr. McNutt didn`t really answer the Union Securities Analyst`s question about Lamaque no. 2 grade. Perhaps Mr. McNutt would still like everyone to reference the grade range given in the August presentation (``Initial startup head grade ranging 3.32 g/t Au to 4.37 g/t Au; expect life of mine to average 4.77 g/t Au``).
From Mr. McNutt`s conference call explanation, it sounds like the ore within the Lamaque 2 reserves area is consistent with reserve expectations. It sounds like it`s the ore in the extra ore (non-reserves) areas that contributes the lower grade. This is also consistent with Peggy`s explanation in one of the conference calls. I believe Mr. McNutt mentioned in this conference call they may be able to improve the grade in this area once they get a better handle on mining these mineralized extensions. Of course, some of the lower grade (economical) development material is also mixed into the average grade result.
It would be good if they eventually get the Lamaque no. 2 grade up to around the 4.0 g/t to 4.3 g/t range. They might be able to then load in the higher grade Bedard Dyke ore and eventually the North Wall ore to bring the overall average up to the LOM average of 4.77 g/t.
3) It would be good if they can do at least the mid point of the grade range for August, of perhaps 3.8 g/t.
3.8 g/t, 96% recovery, 1,000 tpd can give us a monthly run rate of 3,500 ounces (42,000 ounces on an annualized basis prior to full scale Bedard Dyke mining and prior to any mining from the North Wall)
4) They are currently in the development phase for long-hole stope mining. Per Mr. McNutt in the conference call:
* they have driven across the dyke
* they have done (or are doing) a cross cut at an upper level of the long-hole stope
* they are ramping down to do set up preparation work on the buttom fill of the stope
* they are putting in infrastructure for ventilation
* they will be doing some drilling work on the stope once access is ready
They are expecting to begin long-hole stope mining on the Bedard Dyke in early October (about 1.5 to 2.0 months from now). I get the impression that they feel comfortable that the long-hole stope mining permit is not far away. The timing is consistent with the info that was included in the Deutsche Bank agreement. As mentioned before, info in the Deutsche Bank document (SEDAR, January 14`10) has an estimate for the long-hole stope mining permit being granted 150 days after the Lamaque exploration permit has been granted. The exploration permit was granted in early May, thus 150 days probably brings us to about end of September timeframe. As such, starting long-hole mining at the Bedard Dyke in early October would be reasonable.
They now have a contractor focused on the Bedard Dyke development work (from the NR):
``....and an underground mine contractor has been hired to advance the development of the Bedard dyke.``
Hopefully they still have plans to process some of the Bedard Dyke bulk samples (as we have been expecting all along) at some point between now and the start of long-hole (as we know, they are currently permitted for the bulk samples). Perhaps they will pull the bulk sample tonnage once they start drilling. At least we know a drill station has been completed (from the August presentation):
``BedardDyke portal opened with access driven into mineralized zone, drill station completed and ramp commenced``
5) Staffing is starting to shape up (from the MD&A rpt, Outlook section):
``Lamaque mine staffing is almost complete, and the company is reviewing candidates for the general manager of the Québec mining division. As the Bedard Dyke is opened up, additional employees, contractors and support staff will be hired. Due to the operation of the new fleet of new low-profile underground equipment, a significant amount of training is ongoing and will assist in obtaining the full complement of hourly and staff workforce from the Val d’Or area.``
6) Of note, our current monthly prepaid gold commitment to Deutsche Bank is 667 ounces. It will be a while until it increases. The next monthly increase is not until June 2012, when it goes to 1,425 ounces per month. From the Deutsche Bank ``AMENDMENT AGREEMENT`` document (January 14`10, SEDAR):
``e. The definition of `Scheduled Monthly Quantity` as set forth in the Gold Purchase Agreement is hereby deleted and replaced in its entirety with the following:``
```Scheduled Monthly Quantity` means: (i) for Monthly Delivery Dates falling in the months of January 2010 to May 2010, inclusive, 200 Ounces of Gold per Monthly Delivery Date; (ii) for Monthly Delivery Dates falling in the months of June 2010 to May 2012, inclusive, 667 Ounces of gold per Monthly Delivery Date; and (iii) for Monthly Delivery Dates falling in the months of June 2012 to December 2014 inclusive, 1,425 Ounces of Gold per Monthly Delivery Date; Any portion of the Contract Quantity not otherwise required to be delivered hereunder shall be Delivered on the Monthly Delivery Date occurring in the month of December 2014.``
``As of August 13, 2010, Lamaque underground ore production had reached close to 1,000 tonnes per day (tpd) and the mill is operating on a daily basis.``
We now seem to have enough ore to operate the mill efficiently on a daily basis. I think this is the first time in Century`s history for underground mining (without having to depend on stockpile ore). I think the last daily mill operation at Lamaque was 2007, but that was open pit mining.
2) Mr. McNutt didn`t really answer the Union Securities Analyst`s question about Lamaque no. 2 grade. Perhaps Mr. McNutt would still like everyone to reference the grade range given in the August presentation (``Initial startup head grade ranging 3.32 g/t Au to 4.37 g/t Au; expect life of mine to average 4.77 g/t Au``).
From Mr. McNutt`s conference call explanation, it sounds like the ore within the Lamaque 2 reserves area is consistent with reserve expectations. It sounds like it`s the ore in the extra ore (non-reserves) areas that contributes the lower grade. This is also consistent with Peggy`s explanation in one of the conference calls. I believe Mr. McNutt mentioned in this conference call they may be able to improve the grade in this area once they get a better handle on mining these mineralized extensions. Of course, some of the lower grade (economical) development material is also mixed into the average grade result.
It would be good if they eventually get the Lamaque no. 2 grade up to around the 4.0 g/t to 4.3 g/t range. They might be able to then load in the higher grade Bedard Dyke ore and eventually the North Wall ore to bring the overall average up to the LOM average of 4.77 g/t.
3) It would be good if they can do at least the mid point of the grade range for August, of perhaps 3.8 g/t.
3.8 g/t, 96% recovery, 1,000 tpd can give us a monthly run rate of 3,500 ounces (42,000 ounces on an annualized basis prior to full scale Bedard Dyke mining and prior to any mining from the North Wall)
4) They are currently in the development phase for long-hole stope mining. Per Mr. McNutt in the conference call:
* they have driven across the dyke
* they have done (or are doing) a cross cut at an upper level of the long-hole stope
* they are ramping down to do set up preparation work on the buttom fill of the stope
* they are putting in infrastructure for ventilation
* they will be doing some drilling work on the stope once access is ready
They are expecting to begin long-hole stope mining on the Bedard Dyke in early October (about 1.5 to 2.0 months from now). I get the impression that they feel comfortable that the long-hole stope mining permit is not far away. The timing is consistent with the info that was included in the Deutsche Bank agreement. As mentioned before, info in the Deutsche Bank document (SEDAR, January 14`10) has an estimate for the long-hole stope mining permit being granted 150 days after the Lamaque exploration permit has been granted. The exploration permit was granted in early May, thus 150 days probably brings us to about end of September timeframe. As such, starting long-hole mining at the Bedard Dyke in early October would be reasonable.
They now have a contractor focused on the Bedard Dyke development work (from the NR):
``....and an underground mine contractor has been hired to advance the development of the Bedard dyke.``
Hopefully they still have plans to process some of the Bedard Dyke bulk samples (as we have been expecting all along) at some point between now and the start of long-hole (as we know, they are currently permitted for the bulk samples). Perhaps they will pull the bulk sample tonnage once they start drilling. At least we know a drill station has been completed (from the August presentation):
``BedardDyke portal opened with access driven into mineralized zone, drill station completed and ramp commenced``
5) Staffing is starting to shape up (from the MD&A rpt, Outlook section):
``Lamaque mine staffing is almost complete, and the company is reviewing candidates for the general manager of the Québec mining division. As the Bedard Dyke is opened up, additional employees, contractors and support staff will be hired. Due to the operation of the new fleet of new low-profile underground equipment, a significant amount of training is ongoing and will assist in obtaining the full complement of hourly and staff workforce from the Val d’Or area.``
6) Of note, our current monthly prepaid gold commitment to Deutsche Bank is 667 ounces. It will be a while until it increases. The next monthly increase is not until June 2012, when it goes to 1,425 ounces per month. From the Deutsche Bank ``AMENDMENT AGREEMENT`` document (January 14`10, SEDAR):
``e. The definition of `Scheduled Monthly Quantity` as set forth in the Gold Purchase Agreement is hereby deleted and replaced in its entirety with the following:``
```Scheduled Monthly Quantity` means: (i) for Monthly Delivery Dates falling in the months of January 2010 to May 2010, inclusive, 200 Ounces of Gold per Monthly Delivery Date; (ii) for Monthly Delivery Dates falling in the months of June 2010 to May 2012, inclusive, 667 Ounces of gold per Monthly Delivery Date; and (iii) for Monthly Delivery Dates falling in the months of June 2012 to December 2014 inclusive, 1,425 Ounces of Gold per Monthly Delivery Date; Any portion of the Contract Quantity not otherwise required to be delivered hereunder shall be Delivered on the Monthly Delivery Date occurring in the month of December 2014.``
Friday, August 13, 2010
Century Reports Continued Progress During Second Quarter 2010
Century Reports Continued Progress During Second Quarter 2010
BLAINE, WASHINGTON, Aug. 13, 2010 (Marketwire) -- Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) reports its financial and operating results for the second quarter and first half of 2010. See below for key highlights:
----------------------------Three Months ---Six Months ------Six Months
----------------------------June 30, 2010 ---June 30, 2010 ---June 30, 2009
Cash & Restricted Cash $ 9,365,313--------$ 9,365,313------$ 396,253
Working Capital --------$ 2,728,839 -------$ 2,728,839----- ($11,128,404)
Total Assets -------------$ 130,670,527 ----$ 130,670,527 ---$ 92,226,846
Long Term Debt & Deferred
Revenue ----------------$ 32,234,804 ------$ 32,234,804---- $ 326,619
Revenue ----------------$ 6,901,434 --------$ 11,799,445 -----$ 8,431,979
Earnings from Operations $ 3,483,142 -----$ 5,024,663 -----$ 3,934,892
Gold Production (ounces) 5,075 ------------9,996 -------------7,744
Mine Site Cash Cost
(US$/oz Au) ------------$ 702 -------------$ 639 -------------$ 442
Realized Gold Price
(US$/ounce) -------------$ 1,128 -----------$ 1,096 -----------$ 916
Weighted Avg. Common
Shares --------------------345,362,196------ 342,124,016 ---181,539,921
Net Income (Loss) ------$ 255,098 ---------($298,089) ----$ 2,750,468
Net Income (Loss) per share $ 0.00 ---------($0.00) --------$ 0.02
(Canadian $ except as noted)
As at June 30, 2010, the Company reported working capital of $2,728,839 compared to a working capital deficit of $11,128,404 for the corresponding date 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 half of 2010, corporate administration expenses were $2,645,755 (first half 2009: $1,746,841), an increase of approximately 51%. 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.
Corporate Operational Outlook
San Juan Operation Update and Guidance
The San Juan operation is now producing at approximately 4,500 to 5,000 ounces of gold per quarter, and production guidance remains at 18,000 to 20,000 ounces in 2010. During the first half of 2010, ending June 30, 2010, San Juan produced 9,996 ounces of gold at an average mine site cash cost of $639 per ounce, and in the second quarter ending June 30, 2010 produced 5,075 ounces of gold at a mine site cash cost of $702 per ounce.
In the second quarter, cash costs increased due to additional expenses related to the construction of a new cyanide tailings pond facility, and a subsequent shut down of the mill circuits for a period of time. The CIL plant operated on restricted tonnage in the quarter and the project was completed in July 2010. Also transition ore from mining at the Jessica vein system required campaigning through the mill and produced a lower recovery. The average mine site cash cost for the San Juan mine for 2010 has subsequently increased from $550-$570 per ounce to $575-$625 per ounce, but is expected to decrease in 2011 back to the $550-$570 range.
With an investment of US$1.5 million in the operation, the production rate can be expanded from the current 250 tonnes per day to in excess of 400 tonnes per day, which will increase production to 6,000 to 7,000 ounces per quarter. The Company expects to make this investment after the Lamaque mine has reached capacity and the final draw of the Deutsche Bank AG forward gold purchase amount is made.
The mine is continuing with improvements of the tailings dam to increase tailings storage capacity for the planned future production increases. Gold production at San Juan is expected to reach 25,000 - 30,000 ounces of gold per year by 2012.
Lamaque Operation Update and Guidance
On April 30, 2010, the Lamaque mine poured its first gold bar, and subsequently produced a total of 3,942 ounces in the second quarter. Revenue associated with gold production at the Lamaque operation has been offset against the deferred development costs. Company's production guidance for Lamaque for 2010 has decreased from 35,000-40,000 ounces to 25,000-30,000 ounces gold, reflecting an overall production decrease of approximately 10,000 ounces for 2010.
During the startup and commissioning of the Lamaque Project certain equipment procurement, operational obstacles, and mining delays previously identified have hampered production. The Company has identified the following key operational obstacles that have directly affected the production guidance for 2010 as stated above:
1. Three week delay in electrical power grid being connected to minesite affected access to the underground, mine development and the initial stockpile of mill feed prior to mill being operational in April 2010;
2. Three week delay in receiving low-profile underground equipment contributed to postponed underground mine and stope pre-development;
3. Delay in completion of technical reports from consultants, and subsequent permits postponed the Bedard dyke portal and underground development program;
4. Slower than expected recruitment of experienced management, technical staff and underground mining employees has contributed to the delay in the training on equipment and mining methods, and the management of ore feed assay and sampling controls;
5. Competing with numerous other mining projects in the area for vendor services and equipment.
On the positive side of the Lamaque operation, improvements in underground production through the controlling dilution and blasting, and continued efficiencies in the operation of the new low-profile underground equipment, have increased production with more predictable grades and mill recoveries exceeding budget. The Lamaque operation is now staffed with an experienced surface and underground work force, and an underground mine contractor has been hired to advance the development of the Bedard dyke.
Subsequent to the quarter ending June 30, 2010, July production has increased to approximately 820 tpd, and early August production has reached close to 1,000 tpd. The guidance for 2011 at Lamaque remains at 80,000 to 90,000 ounces, and Lamaque is anticipated to reach commercial production in the first half of 2011.
The consolidated production outlook for the Company is approximately 45,000 to 50,000 ounces in 2010, 115,000 ounces in 2011, and 130,000 in 2012. The long term cash cost, on a consolidated basis for the Lamaque and San Juan operations, is estimated to range between $450 to $550 per ounce.
Keith Hulley, Interim CEO of Century commented, "The Company's initial six months of 2010 have been a challenge, with the usual start-up operational difficulties. Our team at the Lamaque operation have done well bringing the project into production, and have worked through some difficult obstacles and unexpected delays resulting in lowering of our corporate production outlook. The operational startup issues are being resolved as we continue with the start-up activities."
On July 28, 2010, Margaret M. Kent, the Company's Chairman, President and Chief Executive Officer resigned. The Board of Century accepted her resignation and has initiated a global executive search for a new President and CEO. During this period of transition, the Board has appointed Mr. Keith Hulley, a Century Director, as interim CEO, and also promoted Mr. Adrian McNutt from VP Operations to Chief Operating Officer. The Company continues with the search for a new President and CEO and expects to be able to make the appointment and announcement in the fall of 2010.
Conference call
Management will host a conference call on Friday, August 13th at 11:00 a.m. Pacific time (2:00 p.m. Eastern time) to discuss the six months and second quarter ending June 30, 2010.
Mining analysts, investors and the media are invited to dial toll-free 1-888-942-9044 in Canada and the United States, or 1-517-308-9426 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 1-800-406-7492 or 1-203-369-3274 and entering the pass code 1324#, or via www.centurymining.com via a downloadable audio file. The archived playback will be available until September 10, 2010 11:59 p.m. Pacific Time.
The second quarter Financials and Management Discussion & Analysis is available on the Company's website at www.centurymining.com and have been filed on www.sedar.com.
BLAINE, WASHINGTON, Aug. 13, 2010 (Marketwire) -- Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) reports its financial and operating results for the second quarter and first half of 2010. See below for key highlights:
----------------------------Three Months ---Six Months ------Six Months
----------------------------June 30, 2010 ---June 30, 2010 ---June 30, 2009
Cash & Restricted Cash $ 9,365,313--------$ 9,365,313------$ 396,253
Working Capital --------$ 2,728,839 -------$ 2,728,839----- ($11,128,404)
Total Assets -------------$ 130,670,527 ----$ 130,670,527 ---$ 92,226,846
Long Term Debt & Deferred
Revenue ----------------$ 32,234,804 ------$ 32,234,804---- $ 326,619
Revenue ----------------$ 6,901,434 --------$ 11,799,445 -----$ 8,431,979
Earnings from Operations $ 3,483,142 -----$ 5,024,663 -----$ 3,934,892
Gold Production (ounces) 5,075 ------------9,996 -------------7,744
Mine Site Cash Cost
(US$/oz Au) ------------$ 702 -------------$ 639 -------------$ 442
Realized Gold Price
(US$/ounce) -------------$ 1,128 -----------$ 1,096 -----------$ 916
Weighted Avg. Common
Shares --------------------345,362,196------ 342,124,016 ---181,539,921
Net Income (Loss) ------$ 255,098 ---------($298,089) ----$ 2,750,468
Net Income (Loss) per share $ 0.00 ---------($0.00) --------$ 0.02
(Canadian $ except as noted)
As at June 30, 2010, the Company reported working capital of $2,728,839 compared to a working capital deficit of $11,128,404 for the corresponding date 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 half of 2010, corporate administration expenses were $2,645,755 (first half 2009: $1,746,841), an increase of approximately 51%. 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.
Corporate Operational Outlook
San Juan Operation Update and Guidance
The San Juan operation is now producing at approximately 4,500 to 5,000 ounces of gold per quarter, and production guidance remains at 18,000 to 20,000 ounces in 2010. During the first half of 2010, ending June 30, 2010, San Juan produced 9,996 ounces of gold at an average mine site cash cost of $639 per ounce, and in the second quarter ending June 30, 2010 produced 5,075 ounces of gold at a mine site cash cost of $702 per ounce.
In the second quarter, cash costs increased due to additional expenses related to the construction of a new cyanide tailings pond facility, and a subsequent shut down of the mill circuits for a period of time. The CIL plant operated on restricted tonnage in the quarter and the project was completed in July 2010. Also transition ore from mining at the Jessica vein system required campaigning through the mill and produced a lower recovery. The average mine site cash cost for the San Juan mine for 2010 has subsequently increased from $550-$570 per ounce to $575-$625 per ounce, but is expected to decrease in 2011 back to the $550-$570 range.
With an investment of US$1.5 million in the operation, the production rate can be expanded from the current 250 tonnes per day to in excess of 400 tonnes per day, which will increase production to 6,000 to 7,000 ounces per quarter. The Company expects to make this investment after the Lamaque mine has reached capacity and the final draw of the Deutsche Bank AG forward gold purchase amount is made.
The mine is continuing with improvements of the tailings dam to increase tailings storage capacity for the planned future production increases. Gold production at San Juan is expected to reach 25,000 - 30,000 ounces of gold per year by 2012.
Lamaque Operation Update and Guidance
On April 30, 2010, the Lamaque mine poured its first gold bar, and subsequently produced a total of 3,942 ounces in the second quarter. Revenue associated with gold production at the Lamaque operation has been offset against the deferred development costs. Company's production guidance for Lamaque for 2010 has decreased from 35,000-40,000 ounces to 25,000-30,000 ounces gold, reflecting an overall production decrease of approximately 10,000 ounces for 2010.
During the startup and commissioning of the Lamaque Project certain equipment procurement, operational obstacles, and mining delays previously identified have hampered production. The Company has identified the following key operational obstacles that have directly affected the production guidance for 2010 as stated above:
1. Three week delay in electrical power grid being connected to minesite affected access to the underground, mine development and the initial stockpile of mill feed prior to mill being operational in April 2010;
2. Three week delay in receiving low-profile underground equipment contributed to postponed underground mine and stope pre-development;
3. Delay in completion of technical reports from consultants, and subsequent permits postponed the Bedard dyke portal and underground development program;
4. Slower than expected recruitment of experienced management, technical staff and underground mining employees has contributed to the delay in the training on equipment and mining methods, and the management of ore feed assay and sampling controls;
5. Competing with numerous other mining projects in the area for vendor services and equipment.
On the positive side of the Lamaque operation, improvements in underground production through the controlling dilution and blasting, and continued efficiencies in the operation of the new low-profile underground equipment, have increased production with more predictable grades and mill recoveries exceeding budget. The Lamaque operation is now staffed with an experienced surface and underground work force, and an underground mine contractor has been hired to advance the development of the Bedard dyke.
Subsequent to the quarter ending June 30, 2010, July production has increased to approximately 820 tpd, and early August production has reached close to 1,000 tpd. The guidance for 2011 at Lamaque remains at 80,000 to 90,000 ounces, and Lamaque is anticipated to reach commercial production in the first half of 2011.
The consolidated production outlook for the Company is approximately 45,000 to 50,000 ounces in 2010, 115,000 ounces in 2011, and 130,000 in 2012. The long term cash cost, on a consolidated basis for the Lamaque and San Juan operations, is estimated to range between $450 to $550 per ounce.
Keith Hulley, Interim CEO of Century commented, "The Company's initial six months of 2010 have been a challenge, with the usual start-up operational difficulties. Our team at the Lamaque operation have done well bringing the project into production, and have worked through some difficult obstacles and unexpected delays resulting in lowering of our corporate production outlook. The operational startup issues are being resolved as we continue with the start-up activities."
On July 28, 2010, Margaret M. Kent, the Company's Chairman, President and Chief Executive Officer resigned. The Board of Century accepted her resignation and has initiated a global executive search for a new President and CEO. During this period of transition, the Board has appointed Mr. Keith Hulley, a Century Director, as interim CEO, and also promoted Mr. Adrian McNutt from VP Operations to Chief Operating Officer. The Company continues with the search for a new President and CEO and expects to be able to make the appointment and announcement in the fall of 2010.
Conference call
Management will host a conference call on Friday, August 13th at 11:00 a.m. Pacific time (2:00 p.m. Eastern time) to discuss the six months and second quarter ending June 30, 2010.
Mining analysts, investors and the media are invited to dial toll-free 1-888-942-9044 in Canada and the United States, or 1-517-308-9426 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 1-800-406-7492 or 1-203-369-3274 and entering the pass code 1324#, or via www.centurymining.com via a downloadable audio file. The archived playback will be available until September 10, 2010 11:59 p.m. Pacific Time.
The second quarter Financials and Management Discussion & Analysis is available on the Company's website at www.centurymining.com and have been filed on www.sedar.com.
Thursday, August 12, 2010
Victor to be on BNN
Hello Folks, Just heard from a good source that victor will be on BNN tomorrow making remarks on cmm apparently. Be sure to let everyone know and tune in tomorrow!
Tuesday, August 10, 2010
Another $3 million Cash injection by Finskiy
$3,000,000 Cash = 10,000,000 full warrants converted to shares @ $.30 (Aug. 6`10 transaction date, Aug. 10`10 filed date on SEDI), it now brings the total to $6,000,000 injected since July
Monday, August 9, 2010
Today's Trading
BMO Nesbitt has been steadily selling a relatively small number of shares in a somewhat programmed fashion for about the last month, but today a BMO Nesbitt shareholder dumped 187,500 shares all at once into the 46, 45.5 and 45-cent bids. The buying continues to come from retail via TD and CIBC.
It is disappointing to see so much selling at such low prices, but as I said before, all that really matters is operational progress and a strong gold price which has crept back to the $1,200 level. 820 tpd average for July is a really good number, and we are probably now cash flow positive from Lamaque. To reach the 2011 production targets, we only need to get to 1,200 tpd by the end of the year, and that is looking to be a near certainty.
It is disappointing to see so much selling at such low prices, but as I said before, all that really matters is operational progress and a strong gold price which has crept back to the $1,200 level. 820 tpd average for July is a really good number, and we are probably now cash flow positive from Lamaque. To reach the 2011 production targets, we only need to get to 1,200 tpd by the end of the year, and that is looking to be a near certainty.
Possible July Lamaque scenarios (based on latest July data)
JUNE ACTUAL:
*gross production ounces = 1,870
*net production ounces (after the 667 ounce deutsche bank prepaid delivery) = 1,203
*approximate Lamaque Gross Revenue in June = C$1,500,000
(@ US$1,200 price, 1.04 exch rate)
JULY POSSIBILITIES:
Known info, from the August Corp Presentation:
``2010 March ~115 TPD, April/May ~265 TPD, June ~450 TPD, July ~820 TPD``
``Mill recovery averaging approximately 95.97% to 96.5%``
``Initial startup head grade ranging 3.32 g/t Au to 4.37 g/t Au; expect life of mine to average 4.77 g/t Au``
Scenario 1 (3.32 g/t grade):
820 tpd = 2,521 gross ounces or 1,854 net ounces = C$2,300,000 Gross Revenue available entirely to Century, based on net ounces
Scenario 2 (3.70 g/t grade):
820 tpd = 2,809 gross ounces or 2,124 net ounces = C$2,660,000 Gross Revenue available entirely to Century, based on net ounces
Scenario 3 (4.00 g/t grade):
820 tpd = 3,037 gross ounces or 2,370 net ounces = C$2,945,000 Gross Revenue available entirely to Century, based on net ounces
Scenario 4 (4.37 g/t grade):
820 tpd = 3,318 gross ounces or 2,651 net ounces = C$3,300,000 Gross Revenue available entirely to Century, based on net ounces
Notes:
1) Other key assumptions: @ US$1,195 gold price, 96% recovery, 1.04 exch rate, 667 ounces paid to DB
2) This is only for Lamaque. The 1,700 monthly San Juan produced ounces and associated gross revenues have been excluded from the figures above.
3) Assumes 30 production days for the month.
4) The 820 tpd is mining tpd. This analysis assumes that all tonnes mined made it to the mill and was processed during the month. The reality is that there will be carryovers from month to month with regards to tonnes mined (not all July mined ore ended up in ounces produced in July). However, ounces could still be similar to those profiled above due to opening balance of mill circuit inventory and ore stockpile carryovers mined in previous month.
*gross production ounces = 1,870
*net production ounces (after the 667 ounce deutsche bank prepaid delivery) = 1,203
*approximate Lamaque Gross Revenue in June = C$1,500,000
(@ US$1,200 price, 1.04 exch rate)
JULY POSSIBILITIES:
Known info, from the August Corp Presentation:
``2010 March ~115 TPD, April/May ~265 TPD, June ~450 TPD, July ~820 TPD``
``Mill recovery averaging approximately 95.97% to 96.5%``
``Initial startup head grade ranging 3.32 g/t Au to 4.37 g/t Au; expect life of mine to average 4.77 g/t Au``
Scenario 1 (3.32 g/t grade):
820 tpd = 2,521 gross ounces or 1,854 net ounces = C$2,300,000 Gross Revenue available entirely to Century, based on net ounces
Scenario 2 (3.70 g/t grade):
820 tpd = 2,809 gross ounces or 2,124 net ounces = C$2,660,000 Gross Revenue available entirely to Century, based on net ounces
Scenario 3 (4.00 g/t grade):
820 tpd = 3,037 gross ounces or 2,370 net ounces = C$2,945,000 Gross Revenue available entirely to Century, based on net ounces
Scenario 4 (4.37 g/t grade):
820 tpd = 3,318 gross ounces or 2,651 net ounces = C$3,300,000 Gross Revenue available entirely to Century, based on net ounces
Notes:
1) Other key assumptions: @ US$1,195 gold price, 96% recovery, 1.04 exch rate, 667 ounces paid to DB
2) This is only for Lamaque. The 1,700 monthly San Juan produced ounces and associated gross revenues have been excluded from the figures above.
3) Assumes 30 production days for the month.
4) The 820 tpd is mining tpd. This analysis assumes that all tonnes mined made it to the mill and was processed during the month. The reality is that there will be carryovers from month to month with regards to tonnes mined (not all July mined ore ended up in ounces produced in July). However, ounces could still be similar to those profiled above due to opening balance of mill circuit inventory and ore stockpile carryovers mined in previous month.
July TPD
Have a look at the website - +/-820 TPD for July. Peter has updated the presentation. North Wall is being collared. Despite the share price fall today, the big houses were nearly all net buyers.
Peggy Appointed Executive Chairman of TAM
BLAINE, WASHINGTON--(Marketwire - Aug. 9, 2010) - Tamerlane Ventures Inc. ("Tamerlane" or the "Company") (TSX VENTURE:TAM) is pleased to announce the appointment of Margaret M. Kent as Executive Chairman of Company. The Company and the new executive management team of Tamerlane is 100% focused on raising the financing required to put the Pine Point Lead Zinc permitted project into production.
"On behalf of the Board of Directors, I am pleased that Margaret "Peggy" Kent has chosen to take the lead executive role to advance the Pine Point lead-zinc project. Peggy is taking an active management role from her previous non-Executive Chairman role to focus a majority of her time to ensure the Pine Point project advances to production from the permitted stage. Peggy is known in the industry for her ability to arrange creative financing packages, raise capital, and advance mining projects to production. Tamerlane is now at a turning point with the current robust economics of the Pine Point project, and the recent rise in commodity prices specifically in lead and zinc. With the newly appointed CEO Michael Willett, newly appointed members of the Board, an experienced management team including VP Exploration Wolf Schleiss, I look forward to what looks to be a promising year ahead," commented Ross F. Burns, President of Tamerlane.
"CEO Michael Willett brings a wealth of hands-on base metals mine engineering and project management experience to our team, most recently from Hudson Bay Mining & Smelting Co. Ltd. Mr. Willett will be working closely with the executive management team to update the feasibility study and subsequently work closely with our financing team. The Pine Point project has a completed bankable feasibility study with robust economics, significant resources, excellent infrastructure including power and a paved highway to site and railway proximal to the site. I look forward to becoming involved on a daily basis to ensure the Pine Point project moves towards production," commented Margaret M. Kent, Executive Chairman of Tamerlane.
Subject to the approval of the TSX Venture Exchange, the Company approved the issue of 1,100,000 stock options to the Executive Chairman and an employee of Tamerlane. The stock options are exercisable into common shares of Tamerlane at an exercise price of C$0.18 per share for a period of five years. Tamerlane's common shares closed at C$0.18 on the TSX Venture Exchange on August 6, 2010. Included in this grant are 1,000,000 options to Margaret M. Kent, the newly appointed Executive Chairman of the Company. Options granted to Ms. Kent, over the five year period, will vest upon the successful completion of raising the required capital to put the Pine Point project into production.
About the Pine Point Project
The Pine Point project is an advanced and permitted Pb/Zn project that hosts extensive infrastructure and significant Pb/Zn resources. The project is situated adjacent to a paved road, close to existing hydro facilities, the existing rail head at Hay River connects directly to the south. A bankable feasibility study was completed in 2008 that identified robust economics and a long mine life. The Company is currently building additional resources through a targeted confirmation surface diamond drill program and reviewing options for potential mine financing alternatives and mine development. Historically, the Pine Point Mine was the largest and most profitable zinc-lead mine in Canadian history. Located on the south side of the Great Slave Lake 129 kilometers (80 miles) south of Yellowknife and 80 kilometers (50 miles) east of Hay River, the historic Pine Point Mine extracted over 64,259,570 tonnes of ore at a grade of 7.0% zinc and 3.1% lead between 1964 and 1987.
The Pine Point Project current mineral inventory contains a NI 43-101 compliant proven & probable reserves of 7.8 million tonnes grading 3.01% Pb and 6.16% Zn, measured & indicated resources of 8.0 million tonnes grading 1.13% Pb and 2.26% Zn. In addition the property hosts non 43-101 compliant historical resources(i) totaling approximately 50.9 million tonnes at a grade of 1.24 % Pb and 3.84% Zn.
The information in this press release was prepared by Mr. Wolfgang A. Schleiss, P.Geo., under the guidance of Mr. Ross F. Burns, P.Geo., LG. Mr. Schleiss is designated as a Qualified Person with the ability and authority to verify the authenticity and validity of the data.
(i)The historical estimates contained in this news release are not in accordance with the mineral resources or mineral reserves classifications contained in the CIM Definition Standards on Mineral Resources and Mineral Reserves, as required by National Instrument 43-101 ("NI 43-101"). Accordingly, the Company is not treating these historical estimates as current mineral resources or mineral reserves as defined in NI 43-101 and such historical estimates should not be relied upon. A qualified person has not done sufficient work to date to classify the historical estimates as current mineral resources or mineral reserves.
About Tamerlane Ventures Inc.
Tamerlane Ventures Inc. is an exploration and development mining company with advanced base metal development projects in Canada and Peru. The Company is working towards bringing the world-class Pb/Zn Pine Point Property back into production in Northwest Territories, Canada, and developing its Los Pinos heap leach copper project in Peru. The Company's primary focus is the Pine Point Project, which consists of the Pine Point Mine, which was the largest and most profitable base metal mine in Canadian history. Tamerlane controls the Pine Point Project, along with a large contiguous property to the west.
On behalf of Tamerlane Ventures Inc.
Ross F. Burns, President
"On behalf of the Board of Directors, I am pleased that Margaret "Peggy" Kent has chosen to take the lead executive role to advance the Pine Point lead-zinc project. Peggy is taking an active management role from her previous non-Executive Chairman role to focus a majority of her time to ensure the Pine Point project advances to production from the permitted stage. Peggy is known in the industry for her ability to arrange creative financing packages, raise capital, and advance mining projects to production. Tamerlane is now at a turning point with the current robust economics of the Pine Point project, and the recent rise in commodity prices specifically in lead and zinc. With the newly appointed CEO Michael Willett, newly appointed members of the Board, an experienced management team including VP Exploration Wolf Schleiss, I look forward to what looks to be a promising year ahead," commented Ross F. Burns, President of Tamerlane.
"CEO Michael Willett brings a wealth of hands-on base metals mine engineering and project management experience to our team, most recently from Hudson Bay Mining & Smelting Co. Ltd. Mr. Willett will be working closely with the executive management team to update the feasibility study and subsequently work closely with our financing team. The Pine Point project has a completed bankable feasibility study with robust economics, significant resources, excellent infrastructure including power and a paved highway to site and railway proximal to the site. I look forward to becoming involved on a daily basis to ensure the Pine Point project moves towards production," commented Margaret M. Kent, Executive Chairman of Tamerlane.
Subject to the approval of the TSX Venture Exchange, the Company approved the issue of 1,100,000 stock options to the Executive Chairman and an employee of Tamerlane. The stock options are exercisable into common shares of Tamerlane at an exercise price of C$0.18 per share for a period of five years. Tamerlane's common shares closed at C$0.18 on the TSX Venture Exchange on August 6, 2010. Included in this grant are 1,000,000 options to Margaret M. Kent, the newly appointed Executive Chairman of the Company. Options granted to Ms. Kent, over the five year period, will vest upon the successful completion of raising the required capital to put the Pine Point project into production.
About the Pine Point Project
The Pine Point project is an advanced and permitted Pb/Zn project that hosts extensive infrastructure and significant Pb/Zn resources. The project is situated adjacent to a paved road, close to existing hydro facilities, the existing rail head at Hay River connects directly to the south. A bankable feasibility study was completed in 2008 that identified robust economics and a long mine life. The Company is currently building additional resources through a targeted confirmation surface diamond drill program and reviewing options for potential mine financing alternatives and mine development. Historically, the Pine Point Mine was the largest and most profitable zinc-lead mine in Canadian history. Located on the south side of the Great Slave Lake 129 kilometers (80 miles) south of Yellowknife and 80 kilometers (50 miles) east of Hay River, the historic Pine Point Mine extracted over 64,259,570 tonnes of ore at a grade of 7.0% zinc and 3.1% lead between 1964 and 1987.
The Pine Point Project current mineral inventory contains a NI 43-101 compliant proven & probable reserves of 7.8 million tonnes grading 3.01% Pb and 6.16% Zn, measured & indicated resources of 8.0 million tonnes grading 1.13% Pb and 2.26% Zn. In addition the property hosts non 43-101 compliant historical resources(i) totaling approximately 50.9 million tonnes at a grade of 1.24 % Pb and 3.84% Zn.
The information in this press release was prepared by Mr. Wolfgang A. Schleiss, P.Geo., under the guidance of Mr. Ross F. Burns, P.Geo., LG. Mr. Schleiss is designated as a Qualified Person with the ability and authority to verify the authenticity and validity of the data.
(i)The historical estimates contained in this news release are not in accordance with the mineral resources or mineral reserves classifications contained in the CIM Definition Standards on Mineral Resources and Mineral Reserves, as required by National Instrument 43-101 ("NI 43-101"). Accordingly, the Company is not treating these historical estimates as current mineral resources or mineral reserves as defined in NI 43-101 and such historical estimates should not be relied upon. A qualified person has not done sufficient work to date to classify the historical estimates as current mineral resources or mineral reserves.
About Tamerlane Ventures Inc.
Tamerlane Ventures Inc. is an exploration and development mining company with advanced base metal development projects in Canada and Peru. The Company is working towards bringing the world-class Pb/Zn Pine Point Property back into production in Northwest Territories, Canada, and developing its Los Pinos heap leach copper project in Peru. The Company's primary focus is the Pine Point Project, which consists of the Pine Point Mine, which was the largest and most profitable base metal mine in Canadian history. Tamerlane controls the Pine Point Project, along with a large contiguous property to the west.
On behalf of Tamerlane Ventures Inc.
Ross F. Burns, President
Note to Canadian Journal Mining (CMJ) readers
Thanks to ``BeerRun`` for the heads up (posted on Stockhouse).
``Marilyn Scales is in Val d'Or, QC, this week touring Century Mining's reopened Lamaque gold mine. Read her article in the September issue of Canadian Mining Journal.``
CMJ currently has it posted at the top of their queue on their home page (dated August 4th). They wrote a favourable article about Century earlier in the year. I expect this new article to be very postive also, otherwise Century would not have allowed them to visit at this time. Link to the CMJ site:
http://www.canadianminingjournal.com/
``Marilyn Scales is in Val d'Or, QC, this week touring Century Mining's reopened Lamaque gold mine. Read her article in the September issue of Canadian Mining Journal.``
CMJ currently has it posted at the top of their queue on their home page (dated August 4th). They wrote a favourable article about Century earlier in the year. I expect this new article to be very postive also, otherwise Century would not have allowed them to visit at this time. Link to the CMJ site:
http://www.canadianminingjournal.com/
Saturday, August 7, 2010
Chillby, here is John Embry`s take on a number of related items
Note: The mineweb link has the option to either listen to or read the interview.
http://www.mineweb.com/mineweb/view/mineweb/en/page96985?oid=109174&sn=2010+Detail&pid=102055
http://www.mineweb.com/mineweb/view/mineweb/en/page96985?oid=109174&sn=2010+Detail&pid=102055
a thought on share prices
If I get some flak for not making a note of the link to the article, then I deserve it. Somewhere on the Goldsheets news directory, i read something the other day that made some sense about why so many company shares in the juniors are so beaten down, despite gold price, production, etc. As the price of gold has risen, we have seen massive inflows of cash into ETF's. Most, if not all, of these dollars would ordinarily be finding themselves invested in producers. What has happened, though, is that the cash has gone into "buying bullion." If there is a gold bubble out there, it will be when the ETF's have to deliver on their sales. The numbers vary, but it is clear that there is a lot of leveraged paper out there.
The result has been a loss to banks, producers and the traditional marketplace for gold. Investment dollars are going into ETF promoters' pockets, making funding for juniors hard to come by. This, in turn, is depressing share prices. Like so many smoke-and-mirror games, though, sooner or later it has to come back to the mine. You can only sell so much paper when there has to be solid merchandise to back up the sale. All it takes is one run on the bullion to uncover the BS being foisted on the investing public by these funds.
My guess is that money must, at some point, begin flowing into mining company shares: it is the only sensible way to produce enough metal to keep the ETF's honest.
On a different note, we are near the nadir of the season. Don't be too surprised if we start seeing our current buying opportunities begin to get more expensive as we move into September.
Hope everyone is having a good weekend!
The result has been a loss to banks, producers and the traditional marketplace for gold. Investment dollars are going into ETF promoters' pockets, making funding for juniors hard to come by. This, in turn, is depressing share prices. Like so many smoke-and-mirror games, though, sooner or later it has to come back to the mine. You can only sell so much paper when there has to be solid merchandise to back up the sale. All it takes is one run on the bullion to uncover the BS being foisted on the investing public by these funds.
My guess is that money must, at some point, begin flowing into mining company shares: it is the only sensible way to produce enough metal to keep the ETF's honest.
On a different note, we are near the nadir of the season. Don't be too surprised if we start seeing our current buying opportunities begin to get more expensive as we move into September.
Hope everyone is having a good weekend!
Link to a San Juan summary write up (no new info)
I think I first noticed this a couple of weeks ago. It`s a summary of San Juan done by www.mining-technology.com. There is nothing new in the summary, but nonetheless I wanted to highlight this (as I continue to view as being important potential at San Juan):
``Mining at San Juan has been restricted to the veins that outcrop in granodiorite cliffs up to 800m in height. Modern exploration and drilling had not been carried out over the area until November 2006. From the surface, the veins have been mined to a depth slightly below the river bed. Mining at depth or at the full strike extent has never been carried out, leaving a substantial potential for further mineralisation along the strike and dip.``
``Mining has been carried out only up to 1,000m horizontally and to a depth of 1,000m. Several ore blocks remain to be extracted in this zone.``
They are only discussing the the San Juan veins. That potential is over and above gold discoveries that may occur on other promising locations within our Peru land package, such as Veta Clara, Santa Clarita, Chumpune, Lily La Hucua, ``Northern Vien`` and other promising potential gold bearing areas. Then we also have Erika, our highly anticipated Cu-Au porphyry potential land position.
As a side note reminder, the San Juan veins are mesothermal veins. Typically with these types of veins, there is strong vein stength with depth and the grades increase with depth also.
http://www.mining-technology.com/projects/sanjuangoldmine/
``Mining at San Juan has been restricted to the veins that outcrop in granodiorite cliffs up to 800m in height. Modern exploration and drilling had not been carried out over the area until November 2006. From the surface, the veins have been mined to a depth slightly below the river bed. Mining at depth or at the full strike extent has never been carried out, leaving a substantial potential for further mineralisation along the strike and dip.``
``Mining has been carried out only up to 1,000m horizontally and to a depth of 1,000m. Several ore blocks remain to be extracted in this zone.``
They are only discussing the the San Juan veins. That potential is over and above gold discoveries that may occur on other promising locations within our Peru land package, such as Veta Clara, Santa Clarita, Chumpune, Lily La Hucua, ``Northern Vien`` and other promising potential gold bearing areas. Then we also have Erika, our highly anticipated Cu-Au porphyry potential land position.
As a side note reminder, the San Juan veins are mesothermal veins. Typically with these types of veins, there is strong vein stength with depth and the grades increase with depth also.
http://www.mining-technology.com/projects/sanjuangoldmine/
Friday, August 6, 2010
An Opposing View
One of the drawbacks to a blog as compared to a stock forum like Stockhouse is that it is easy to miss a comment to a post if you don't check all recent posts for new comments. For that reason and the fact it is much easier to compose a new post, I usually prefer to make a new post rather than comment on an existing post.
Production05 I seldom, if ever, disagree with anything you post, but this time I'd like to make an opposing case for relocation of the Head Offices of Century Mining from the US to Canada. You do make a lot of valid points, but I think now is the time to become a truly Canadian company.
The company is, in fact, a Canadian company as it was incorporated in British Columbia in 1994 and is subject to Canadian laws and trades on a Canadian exchange and will pay Canadian taxes when profitable. The head office is in Blaine, Washington only because that is where Peggy Kent lives and she owns the building where Century rents space from her. There is no reason to continue to do so, but I agree the transition has to be a gradual process. I'd like to see it happen this year. We only need to relocate key management and technical people, but many of the accounting and data entry positions are easily fill-able at the new location.
I agree with you that Century should be located in Toronto rather than Vancouver. Apart from the reasons you cited, it is much closer to our operations in Val d'Or and Peru which would reduce travel costs and time and we'd be in the same time zone as our mining operations.
We are supposed to get our new CEO sometime in the fall. I'd like the company to tell prospective candidates that they will be located in Toronto, Canada - not Blaine, Washington.
Now might also be a good time to change the name of the company to something with the word "Gold" in the name. A lot of investors lost money on the decline in share price from its $1.89 peak to the low single digits. A new management and a new name might help to erase the PK experience and help bring them back once the company demonstrates its return to profitability.
On another note, I'd like to thank all contributors for their posts and comments and welcome Mike who posts on Stockhouse as Giftedone. He is one of the very few sensible posters on that Forum. Mike, if you'd like to become a blog member and have the ability to create new posts, send me an email to centurycarib@gmail.com. Of course that invitation is open to all of you "commenters".
Production05 I seldom, if ever, disagree with anything you post, but this time I'd like to make an opposing case for relocation of the Head Offices of Century Mining from the US to Canada. You do make a lot of valid points, but I think now is the time to become a truly Canadian company.
The company is, in fact, a Canadian company as it was incorporated in British Columbia in 1994 and is subject to Canadian laws and trades on a Canadian exchange and will pay Canadian taxes when profitable. The head office is in Blaine, Washington only because that is where Peggy Kent lives and she owns the building where Century rents space from her. There is no reason to continue to do so, but I agree the transition has to be a gradual process. I'd like to see it happen this year. We only need to relocate key management and technical people, but many of the accounting and data entry positions are easily fill-able at the new location.
I agree with you that Century should be located in Toronto rather than Vancouver. Apart from the reasons you cited, it is much closer to our operations in Val d'Or and Peru which would reduce travel costs and time and we'd be in the same time zone as our mining operations.
We are supposed to get our new CEO sometime in the fall. I'd like the company to tell prospective candidates that they will be located in Toronto, Canada - not Blaine, Washington.
Now might also be a good time to change the name of the company to something with the word "Gold" in the name. A lot of investors lost money on the decline in share price from its $1.89 peak to the low single digits. A new management and a new name might help to erase the PK experience and help bring them back once the company demonstrates its return to profitability.
On another note, I'd like to thank all contributors for their posts and comments and welcome Mike who posts on Stockhouse as Giftedone. He is one of the very few sensible posters on that Forum. Mike, if you'd like to become a blog member and have the ability to create new posts, send me an email to centurycarib@gmail.com. Of course that invitation is open to all of you "commenters".
Century in an advantageous position, being fully funded - juniors struggling with financing and especially project financing
If Century can deliver Lamaque, get the share price significantly up and build up cash position through strong operating cash flow then it could eventually be in a position to take advantage of market conditions in the junior space.
Christopher Ecclestone did not mention Century (or any other specific company) in the article. However, Mr. Ecclestone was one of the 3 public figures that recommended Century Mining as a BUY earlier in the year (Victor Goncalves and Mark Lackey were the other two) - long-term BUY recommendation by Mr. Ecclestone in March.
Here is the article:
Trouble in paradise nowadays for mine project financing--Ecclestone
Hallgarten's Christopher Ecclestone suggests gold ETFs have become a lobster trap for the mining industry and mining investors, particularly in reducing the availability of funds for project financing.
Author: Dorothy Kosich
Posted: Tuesday , 03 Aug 2010
RENO, NV -
Hallgarten mining analyst Christopher Ecclestone suggested Monday that there is "trouble in paradise" because gold ETFs diverted funds that might have otherwise gone to a broader universe of mining stocks.
"It has created an unworthy aristocracy of stocks, particularly in the gold space," he insisted.
Ecclestone also believes, "IPOs in the mining space are largely a thing of the past" because "there are too many shells and moribund miners around for anyone to bother going through the rigmarole and expense of a de novo listing at this time.
"In fact there are so many of these vehicles available that it might be five years before IPOs become a feature again," he advised.
Junior financing is tough
"Many categories of miner are well-nigh unfinanceable to the institutional or retail public these days," Ecclestone suggested. "This includes most base metals stocks (that are not copper focused) and most specialty metals stories."
"A surprising number of junior golds and silvers are also like lepers," he asserted. "Their problem comes from marginal projects that will need amounts of money to move forward that are just not imaginable in light of the insiders' lack of access to fund."
"The most they can raise is lots of under $2mn and in many cases under $500K and then the market just knows that they will be back in short-order seeking more," he added. "The drip-feed financing method is now poison in a static market."
Large-scale financings are iffy
In his analysis, Ecclestone suggests that "quite a number of mid-sized miners did raises that were disproportionate to their needs and then have husbanded cash" because they feared that things would not get better.
To compound the situation, "we do not see a flow of new money to the mining space," he noted.
Gold, silver loans are not providing the expected boost
"One would expect that companies in the financial stretch to production would be a pretty sure bet for a VPP [volumetric production payments] arrangement or some such structure, but we hear increasingly that companies who have tried their path are abandoning it out of impatience with the protracted nature of the negotiations with the commercial banks that tend to back these deals," Ecclestone said.
"This is throwing these companies back into the financing quicksand where they have to suffer the indignities of dilution as they enter the final straight to production," he observed. "One of the disappointments here is that no one has come up with a vehicle or instrument to make these gold loans tradable. Instead, they can go onto the books of the banks and disappears forever."
"Thus the banks are limited to the extent that they can add long-term exposures to their balance sheets," Ecclestone added.
M&A-Cashboxes are now few and far between
In his analysis, Ecclestone advised, "The snapping up of cashboxes as a backdoor financing method has pretty much run its course. The big...are as elusive and clueless as ever, while the small...imagine that every dollar in their trove is worth $1.20."
"Curiously the cashboxes should be the initiators of the transaction because they have the whiphand and instead they are like deer in the headlights," he added.
Bought Deals
Ecclestone observed that many of the big mining transactions (those in the over $100mn raised category) in the Canadian market are done as bought deals. "However, even these are relatively scarce."
Between March 30th and July 29th, the website www.canadianfinancing.com/mining showed 204 mining companies on the TSX and TSX-V that are raising money. Of these, two were cancelled, 11 amended, 76 closed and 106 proposed. "This gives a rather damning majority of transactions still in the pending category," he noted.
ETFS-a lobster trap for industry and investors?
"We are now eight years into the commodity (and most particularly metals) reflation and there has not even been something vaguely like the popular upwelling of retail interest in the mining space that there was in emerging markets in the 1990s," Ecclestone observed.
"Well, might we ask ‘Has the Gold ETF phenomenon actually undermined the financing of mining companies in both the mid- and junior-tier of the markets?' and then ‘Has the Gold ETF phenomenon removed oxygen from the base and specialty metals miners and prospectors?'"
Ecclestone believes the move into the precious metals ETFs "has been a relatively one-way street." He envisions a worse scenario for gold bugs, which "would be having the gold ETF shrink by a mere 20% which would tip $10bn of gold into the marketplace which is extraordinarily thin."
He also asserted that "the whole ETF phenomenon has made money for the ETF promoters in terms of fees but that the investment banking community have made almost nothing of it while only the Magic Circle of companies in the GDX [Market Vectors Gold Miners ETF] and the GDXJ [Market Vectors Junior Gold Miners ETF] have been able to push out some stock into the ferocious buying pressure from the ETFs, but everyone else in the mining community have largely been beggars at this feast."
Conclusion
"Things are tough now and mining companies that have lost their credibility might think it's the market that is tough when in fact the blame can be slated home to their own errors and misdeeds," Ecclestone advised.
"As in any Darwinian process, it's survival of the fittest and a lack of introspection on why the investing public no longer like a management might be a significant step to making it more marketable and thus more worthy of being financed," he concluded.
http://www.miningweb.co.za/mineweb/view/mineweb/en/page31?oid=109088&sn=Detail&pid=31
Christopher Ecclestone did not mention Century (or any other specific company) in the article. However, Mr. Ecclestone was one of the 3 public figures that recommended Century Mining as a BUY earlier in the year (Victor Goncalves and Mark Lackey were the other two) - long-term BUY recommendation by Mr. Ecclestone in March.
Here is the article:
Trouble in paradise nowadays for mine project financing--Ecclestone
Hallgarten's Christopher Ecclestone suggests gold ETFs have become a lobster trap for the mining industry and mining investors, particularly in reducing the availability of funds for project financing.
Author: Dorothy Kosich
Posted: Tuesday , 03 Aug 2010
RENO, NV -
Hallgarten mining analyst Christopher Ecclestone suggested Monday that there is "trouble in paradise" because gold ETFs diverted funds that might have otherwise gone to a broader universe of mining stocks.
"It has created an unworthy aristocracy of stocks, particularly in the gold space," he insisted.
Ecclestone also believes, "IPOs in the mining space are largely a thing of the past" because "there are too many shells and moribund miners around for anyone to bother going through the rigmarole and expense of a de novo listing at this time.
"In fact there are so many of these vehicles available that it might be five years before IPOs become a feature again," he advised.
Junior financing is tough
"Many categories of miner are well-nigh unfinanceable to the institutional or retail public these days," Ecclestone suggested. "This includes most base metals stocks (that are not copper focused) and most specialty metals stories."
"A surprising number of junior golds and silvers are also like lepers," he asserted. "Their problem comes from marginal projects that will need amounts of money to move forward that are just not imaginable in light of the insiders' lack of access to fund."
"The most they can raise is lots of under $2mn and in many cases under $500K and then the market just knows that they will be back in short-order seeking more," he added. "The drip-feed financing method is now poison in a static market."
Large-scale financings are iffy
In his analysis, Ecclestone suggests that "quite a number of mid-sized miners did raises that were disproportionate to their needs and then have husbanded cash" because they feared that things would not get better.
To compound the situation, "we do not see a flow of new money to the mining space," he noted.
Gold, silver loans are not providing the expected boost
"One would expect that companies in the financial stretch to production would be a pretty sure bet for a VPP [volumetric production payments] arrangement or some such structure, but we hear increasingly that companies who have tried their path are abandoning it out of impatience with the protracted nature of the negotiations with the commercial banks that tend to back these deals," Ecclestone said.
"This is throwing these companies back into the financing quicksand where they have to suffer the indignities of dilution as they enter the final straight to production," he observed. "One of the disappointments here is that no one has come up with a vehicle or instrument to make these gold loans tradable. Instead, they can go onto the books of the banks and disappears forever."
"Thus the banks are limited to the extent that they can add long-term exposures to their balance sheets," Ecclestone added.
M&A-Cashboxes are now few and far between
In his analysis, Ecclestone advised, "The snapping up of cashboxes as a backdoor financing method has pretty much run its course. The big...are as elusive and clueless as ever, while the small...imagine that every dollar in their trove is worth $1.20."
"Curiously the cashboxes should be the initiators of the transaction because they have the whiphand and instead they are like deer in the headlights," he added.
Bought Deals
Ecclestone observed that many of the big mining transactions (those in the over $100mn raised category) in the Canadian market are done as bought deals. "However, even these are relatively scarce."
Between March 30th and July 29th, the website www.canadianfinancing.com/mining showed 204 mining companies on the TSX and TSX-V that are raising money. Of these, two were cancelled, 11 amended, 76 closed and 106 proposed. "This gives a rather damning majority of transactions still in the pending category," he noted.
ETFS-a lobster trap for industry and investors?
"We are now eight years into the commodity (and most particularly metals) reflation and there has not even been something vaguely like the popular upwelling of retail interest in the mining space that there was in emerging markets in the 1990s," Ecclestone observed.
"Well, might we ask ‘Has the Gold ETF phenomenon actually undermined the financing of mining companies in both the mid- and junior-tier of the markets?' and then ‘Has the Gold ETF phenomenon removed oxygen from the base and specialty metals miners and prospectors?'"
Ecclestone believes the move into the precious metals ETFs "has been a relatively one-way street." He envisions a worse scenario for gold bugs, which "would be having the gold ETF shrink by a mere 20% which would tip $10bn of gold into the marketplace which is extraordinarily thin."
He also asserted that "the whole ETF phenomenon has made money for the ETF promoters in terms of fees but that the investment banking community have made almost nothing of it while only the Magic Circle of companies in the GDX [Market Vectors Gold Miners ETF] and the GDXJ [Market Vectors Junior Gold Miners ETF] have been able to push out some stock into the ferocious buying pressure from the ETFs, but everyone else in the mining community have largely been beggars at this feast."
Conclusion
"Things are tough now and mining companies that have lost their credibility might think it's the market that is tough when in fact the blame can be slated home to their own errors and misdeeds," Ecclestone advised.
"As in any Darwinian process, it's survival of the fittest and a lack of introspection on why the investing public no longer like a management might be a significant step to making it more marketable and thus more worthy of being financed," he concluded.
http://www.miningweb.co.za/mineweb/view/mineweb/en/page31?oid=109088&sn=Detail&pid=31
Question to ponder
Now that PK is gone, what (who) is holding back the share price of CMM?
Any thoughts?
Any thoughts?
Thursday, August 5, 2010
New President and CEO in the fall?
http://nnsl.com/northern-news-services/stories/papers/aug4_10res.html
SOMBA K'E/YELLOWKNIFE - A former mining executive well known to Yellowknifers resigned her position as president and CEO of a U.S. mining company on July 28 for "personal reasons," according to a company press release.
"Peggy (Kent) is looking to move on to spend more time with her family and to continue on other business opportunities," said Peter A. Ball, director of investor relations for Century Mining Corporation in Blaine, Wash., in a telephone interview on July 30.
Peggy Kent, also known as Margaret Kent and formerly known as Peggy Witte, will stay on as a consultant for the next 12 months with Century, a company of which she is credited as "the founder and leader" since the company's beginning in 2003, according to the press release.
Ball said he expects a new president and CEO will be named sometime in the fall. In the meantime, Keith Hulley will replace Kent as president and CEO on an interim basis. Century Mining also promoted Adrian McNutt to chief operating officer.
Ball said investors had "mixed feelings" about Kent's resignation.
"Some investors were sad to see an icon in the mining industry leave the company at the point she did," he said.
Kent was formerly president and CEO of Royal Oak Mines in NWT during the 1990s. She was in charge of the Giant mine during a two-year bitter labour strike in 1992.
The labour dispute made national headlines when a bomb exploded along an underground track and claimed the lives of nine miners. Roger Warren was found guilty by a jury for the explosion. The mine's final downfall came when it went into receivership in 1999. It was later discovered that about 237,000 tonnes of arsenic trioxide was stored underneath the mine.
In a previous interview with Northern News Services, Kent said that arsenic storage underground and labour problems were inherited by Royal Oak from previous owners of the mine since 1948.
"I walked into that situation that already had trouble with a capital T," she said. "When you walk into a situation like that, no matter if you were God ... it takes a long time to turn around an operation."
"The only thing that I can say is that I continue to be very, very sorry for what has happened," she said. "If there was anything I ever could have done differently, I probably should have advised my board that we shouldn't have bought the mine."
Kent was unavailable for an interview July 30 because she is "travelling and on holidays," said Ball.
Kent is still employed by Century Mining's sister company Tamerlane Ventures Inc. as chairman where she continues to take an active role in Tamerlane's lead and zinc operations in the Pine Point project in Hay River.
Both Century Mining and Tamerlane Ventures are based in Blaine, and share the same building.
Century Mining's share price closed on July 30 on the Toronto Stock Exchange at $0.52. Tamerlane Ventures closed at $0.15.
SOMBA K'E/YELLOWKNIFE - A former mining executive well known to Yellowknifers resigned her position as president and CEO of a U.S. mining company on July 28 for "personal reasons," according to a company press release.
"Peggy (Kent) is looking to move on to spend more time with her family and to continue on other business opportunities," said Peter A. Ball, director of investor relations for Century Mining Corporation in Blaine, Wash., in a telephone interview on July 30.
Peggy Kent, also known as Margaret Kent and formerly known as Peggy Witte, will stay on as a consultant for the next 12 months with Century, a company of which she is credited as "the founder and leader" since the company's beginning in 2003, according to the press release.
Ball said he expects a new president and CEO will be named sometime in the fall. In the meantime, Keith Hulley will replace Kent as president and CEO on an interim basis. Century Mining also promoted Adrian McNutt to chief operating officer.
Ball said investors had "mixed feelings" about Kent's resignation.
"Some investors were sad to see an icon in the mining industry leave the company at the point she did," he said.
Kent was formerly president and CEO of Royal Oak Mines in NWT during the 1990s. She was in charge of the Giant mine during a two-year bitter labour strike in 1992.
The labour dispute made national headlines when a bomb exploded along an underground track and claimed the lives of nine miners. Roger Warren was found guilty by a jury for the explosion. The mine's final downfall came when it went into receivership in 1999. It was later discovered that about 237,000 tonnes of arsenic trioxide was stored underneath the mine.
In a previous interview with Northern News Services, Kent said that arsenic storage underground and labour problems were inherited by Royal Oak from previous owners of the mine since 1948.
"I walked into that situation that already had trouble with a capital T," she said. "When you walk into a situation like that, no matter if you were God ... it takes a long time to turn around an operation."
"The only thing that I can say is that I continue to be very, very sorry for what has happened," she said. "If there was anything I ever could have done differently, I probably should have advised my board that we shouldn't have bought the mine."
Kent was unavailable for an interview July 30 because she is "travelling and on holidays," said Ball.
Kent is still employed by Century Mining's sister company Tamerlane Ventures Inc. as chairman where she continues to take an active role in Tamerlane's lead and zinc operations in the Pine Point project in Hay River.
Both Century Mining and Tamerlane Ventures are based in Blaine, and share the same building.
Century Mining's share price closed on July 30 on the Toronto Stock Exchange at $0.52. Tamerlane Ventures closed at $0.15.
Wednesday, August 4, 2010
More Warrants Exercised by Finisky
Finisky exercised another 3,333,333 warrants on July 31, bringing his total to 10 million exercised which has added $3 million to the coffers.
In my opinion he is exercising options to provide needed expansion capital - not to increase his holdings for any kind of takeover scenario by the Russians. There are no Russians on the Board or in any management position. Finisky had the right to name two people to the BoD and he didn't name any Russians, but two highly respected executives whose integrity is beyond reproach IMO.
Besides Finisky is still a minority shareholder and would remain so even if he exercised all of his options. He can influence the Board, but not control it.
I expect the vacant board position to be filled by the new CEO and it would be a good time to also appoint an independent Chairman of the board like we were promised last December. I find it somewhat strange that the Board would take the position that PK was the best person to be Chairman in addition to President and CEO and then have her abruptly resign. Perhaps Hulley will become the new Chairman after the new CEO is appointed.
I'm also wondering if McNutt threatened to leave as well, but was pacified by the VP of Operations and COO appointment. He has been very loyal to Peggy and she to him as evidenced by the $800k payment she was able to get him to stay after the Finskiy investment.
The selling today appeared to be all retail from TD Securities - Canada's largest discount brokerage. Pictet, with 56,000 shares purchased, was the largest buyer which was likely to be institutional. I don't think we'll see much institutional buying until we can show that Lamaque is cash flow positive.
To me the only things that really matter are production rates increasing to 1,200 tpd this year and 2,000 tpd next year as well as a strong gold price. I don't expect we will make the 2010 production target of 40k ounces from Lamaque, as we would have to average 1,350 tpd for the July - December period at current grades. But we should get to 1200 tpd by year end which will put us in position to produce over 100k ounces in 2011 from both mines.
In my opinion he is exercising options to provide needed expansion capital - not to increase his holdings for any kind of takeover scenario by the Russians. There are no Russians on the Board or in any management position. Finisky had the right to name two people to the BoD and he didn't name any Russians, but two highly respected executives whose integrity is beyond reproach IMO.
Besides Finisky is still a minority shareholder and would remain so even if he exercised all of his options. He can influence the Board, but not control it.
I expect the vacant board position to be filled by the new CEO and it would be a good time to also appoint an independent Chairman of the board like we were promised last December. I find it somewhat strange that the Board would take the position that PK was the best person to be Chairman in addition to President and CEO and then have her abruptly resign. Perhaps Hulley will become the new Chairman after the new CEO is appointed.
I'm also wondering if McNutt threatened to leave as well, but was pacified by the VP of Operations and COO appointment. He has been very loyal to Peggy and she to him as evidenced by the $800k payment she was able to get him to stay after the Finskiy investment.
The selling today appeared to be all retail from TD Securities - Canada's largest discount brokerage. Pictet, with 56,000 shares purchased, was the largest buyer which was likely to be institutional. I don't think we'll see much institutional buying until we can show that Lamaque is cash flow positive.
To me the only things that really matter are production rates increasing to 1,200 tpd this year and 2,000 tpd next year as well as a strong gold price. I don't expect we will make the 2010 production target of 40k ounces from Lamaque, as we would have to average 1,350 tpd for the July - December period at current grades. But we should get to 1200 tpd by year end which will put us in position to produce over 100k ounces in 2011 from both mines.
Article from IBTimes with Brian Mok from Union Securities
Whole Article found here: http://uk.ibtimes.com/articles/20100804/gold-silver-copper-gold-price-functional-currencies-major-explorers-producers-junior.htm
TGR: You just started covering Century Mining Corporation (TSX.V:CMM). In northwestern Québec, it has the former Sigma-Lamaque mine, which has underground ore that Century is starting to mill. Production is ramping up for 2011. Why did Union decide to focus on Century?
BM: Century is a name that we've been looking at for about a year. I went up to the Lamaque site last July to get the lay of the land and meet some of the technical personnel. I was impressed with what I saw at the mill and some of the other ancillary facilities, underground, as well as the fact that it's in Val-d'Or, Quebec, a mature mining center, where you have lots of labor, the supplies you need, the infrastructure and a cooperative government.
I also felt very comfortable with the technical team's plan to bring this mine back into operation. I thought the focus on underground production was key. We know the history of the open pit and some of the trouble the previous operators had with them.
The engineers described how they wanted to proceed. All they needed was money, which they finally got at the end of December. In January they started to roll and I kept an eye on it. Were they hitting the milestones that they set for themselves? Yes, they were doing exactly what they said they would do. I have confidence in the team's ability at Lamaque to bring the operation online.
TGR: What about its production profile?
BM: Century has the ability to ramp up from its target of 40,000 ounces this year to 90,000 next year and eventually 100,000 ounces by 2013. I like that. I'm quite confident that Century will be able to execute the plan to ramp up to 100,000 ounces in the next three years.
There is additional exploration potential at Lamaque based on their historic database, as well as other exploration targets within the complex.
TGR: What about some of their other properties? They've got a significant project in Peru.
BM: Yes, San Juan in Peru. It's a small, narrow-vein, high-grade system. It had been capital- starved when they purchased it, and then they got things rolling. They're producing about 19,000 ounces a year from San Juan now. There are plans to expand to about 30,000 ounces by 2012, through mill expansion as well as by modernizing and mechanizing the underground mining methods using refurbished equipment from Lamaque.
They also want to use different mining methods to increase throughput and ultimately produce more gold and silver out of San Juan. That's the plan, over the next two or three years. In terms of reserves, they've got six years on the books; that's what I've modeled right now. But the mine has run for 30 years and there's still significant exploration potential on the zone where they're mining, as well as the different vein structures within their property. There is also a porphyry target. I think six years is conservative in terms of mine life. Over the next couple of years we'll see what the exploration efforts bring.
TGR: What about cash flow?
BM: Cash flow is going to be basically flat this year as they ramp up Lamaque. Then into next year, we're looking at $0.10 per share in cash flow. In absolute dollars, that's about $36 million. This declines to $0.09 per share as a result of the reductions in my gold price assumptions for 2012.
TGR: Will that be enough to service debt and make reinvestments?
BM: Yes. This year is the critical year. I've assumed that they'll need another $5 million in financing to basically complete development through 2010. Then they'll start to become cash-flow positive next year, probably in Q2, then they're home free. They'll be able to repay the capital leases from cash flow. Right now they're delivering gold into that prepaid gold forward. I don't foresee any issues with Century not being able to deliver the gold to meet their obligations.
TGR: They're hedged?
BM: The $33 million prepaid forward agreement they entered into with Deutsche Bank is a five-year facility, so they're partially hedged until 2014; it covers 61,183 ounces or 17% of the forecast production during that period. After that, they experience the full gold price.
TGR: What's your 12-month target on Century?
BM: It's $0.90.
TGR: You just started covering Century Mining Corporation (TSX.V:CMM). In northwestern Québec, it has the former Sigma-Lamaque mine, which has underground ore that Century is starting to mill. Production is ramping up for 2011. Why did Union decide to focus on Century?
BM: Century is a name that we've been looking at for about a year. I went up to the Lamaque site last July to get the lay of the land and meet some of the technical personnel. I was impressed with what I saw at the mill and some of the other ancillary facilities, underground, as well as the fact that it's in Val-d'Or, Quebec, a mature mining center, where you have lots of labor, the supplies you need, the infrastructure and a cooperative government.
I also felt very comfortable with the technical team's plan to bring this mine back into operation. I thought the focus on underground production was key. We know the history of the open pit and some of the trouble the previous operators had with them.
The engineers described how they wanted to proceed. All they needed was money, which they finally got at the end of December. In January they started to roll and I kept an eye on it. Were they hitting the milestones that they set for themselves? Yes, they were doing exactly what they said they would do. I have confidence in the team's ability at Lamaque to bring the operation online.
TGR: What about its production profile?
BM: Century has the ability to ramp up from its target of 40,000 ounces this year to 90,000 next year and eventually 100,000 ounces by 2013. I like that. I'm quite confident that Century will be able to execute the plan to ramp up to 100,000 ounces in the next three years.
There is additional exploration potential at Lamaque based on their historic database, as well as other exploration targets within the complex.
TGR: What about some of their other properties? They've got a significant project in Peru.
BM: Yes, San Juan in Peru. It's a small, narrow-vein, high-grade system. It had been capital- starved when they purchased it, and then they got things rolling. They're producing about 19,000 ounces a year from San Juan now. There are plans to expand to about 30,000 ounces by 2012, through mill expansion as well as by modernizing and mechanizing the underground mining methods using refurbished equipment from Lamaque.
They also want to use different mining methods to increase throughput and ultimately produce more gold and silver out of San Juan. That's the plan, over the next two or three years. In terms of reserves, they've got six years on the books; that's what I've modeled right now. But the mine has run for 30 years and there's still significant exploration potential on the zone where they're mining, as well as the different vein structures within their property. There is also a porphyry target. I think six years is conservative in terms of mine life. Over the next couple of years we'll see what the exploration efforts bring.
TGR: What about cash flow?
BM: Cash flow is going to be basically flat this year as they ramp up Lamaque. Then into next year, we're looking at $0.10 per share in cash flow. In absolute dollars, that's about $36 million. This declines to $0.09 per share as a result of the reductions in my gold price assumptions for 2012.
TGR: Will that be enough to service debt and make reinvestments?
BM: Yes. This year is the critical year. I've assumed that they'll need another $5 million in financing to basically complete development through 2010. Then they'll start to become cash-flow positive next year, probably in Q2, then they're home free. They'll be able to repay the capital leases from cash flow. Right now they're delivering gold into that prepaid gold forward. I don't foresee any issues with Century not being able to deliver the gold to meet their obligations.
TGR: They're hedged?
BM: The $33 million prepaid forward agreement they entered into with Deutsche Bank is a five-year facility, so they're partially hedged until 2014; it covers 61,183 ounces or 17% of the forecast production during that period. After that, they experience the full gold price.
TGR: What's your 12-month target on Century?
BM: It's $0.90.
Tuesday, August 3, 2010
New Corporate presentation
http://www.centurymining.com/i/pdf/July-2010-CorpPres.pdf
Absent are the July numbers but Peggy's name has been removed. Does anyone know for sure that we are not getting July # till the end of August?
Monday, August 2, 2010
Interesting interview
I thought this might be interesting- especially the remark about the first qualification of a miner, for investment purposes: :Grade is everything..."
Pierre Lassonde:
article with a link to interview on Mineweb.
http://www.mineweb.net/mineweb/view/mineweb/en/page96985?oid=108750&sn=2010+Detail&pid=102055
Pierre Lassonde:
article with a link to interview on Mineweb.
http://www.mineweb.net/mineweb/view/mineweb/en/page96985?oid=108750&sn=2010+Detail&pid=102055
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