Thursday, August 19, 2010

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.

1 comment:

Wingfong said...

Abstracted the followings from The Gold Report dd April/23/10 which carried Victor's interview .

1) CMM. what is interesting is the numbers. Between their Peruvian operation and their Quebec operation, which is the Lamaque mine, the company should be producing between 140,000 and 150,000 oz of gold per year. All in costs should be around $460/oz
2) So you are looking at a company that could be making about $70million to $80million a year before tax. You factor a 10 or 12 multiple into that, which is quite low and you are looking at a stock price that is $2,00 to $2.50 just for fair valuation. This is very cheap. This is a no brainer.
3) I will hold this for long term and I do have a core position on CMM. As of now, company has 6million oz of gold in all catagories. To date. the mine has produced 9million oz. I think the blue-sky potential is multiple million oz.
4) This is a company which can certainly expand its production. It can even start consolidating the Val D'or area just by default of having a stronger stock price and a lot of money in the bank
5) Whether it is CMM or someone else like Anico-Eagle, I think there is a high possibility the Val D'or area will be consolidated