one of our members here said it right. STANDING OVATION. Your response was more measured than mine would have ever been. I respect your level headed approach to investing and especially ALL the excellent analysis which you present to this Blog and on SH. I am sure I speak for all here and for all on SH, you are fountain of information and 99.9% of us enjoy your prognostications as we wait for CMM to come on line.
I hope you will continue to share your wit and thoughts on CMM, when you feel it is warranted.
With the most sincere respect! Rhump.
9 comments:
Hi rhump,
I would like to second the motion.
We are all better informed about CMM because of Production05's due diligence and hard work. Thanks a million Prod 5!!!!!
Thank you for all your insight and information. It truly instills me that people out here are willing to give their input to make us all the more wise.
Thanks Production 5
Production05, you are great. I have learned a lot about CMM and gold mining in general only from you.
Thank you,
Keith
P5...or anybody...
Any comments on the AND deal and how this relates to our numbers. Seems like one helluva deal for AND shareholders...
When our resource update comes out in early 2011, let's hope for a big shift into that P&P category
Rock3030, I have analyzed Andean`s data from time to time in the past. I am not an expert on Andean, but I am a bit familiar. I may comment on them and their takeover bidding war situation, but not sure at this time.
Instead, at this time, I will provide some fyi info on one of Scola`s other ventures (since there was an update today).
Scola, via his Gravity investment company, has stepped in to try to salvage a company called Zaruma. They are in serious financial difficulties. Zaruma has a near completed copper operation (in Mexico). It also has a nearby gold deposit with a lot of good potential. Unfortunately, it has $38,000,000 in liabilities that are past due, with $27,000,000 of that amount being secured debt.
Scola stepped in this year (as an investor) and has provided them with $800,000 in convertible debt to help them survive near-term - can be converted to 16M shares plus 16M warrants. Zaruma has 118M shares outstanding.
Scola has a non-binding equity deal with them to provide $20M @ $.05 plus equivalent warrants at $.10 each. However, the deal will only go through with at least $20M of debt financing being arranged. A non-binding copper off-take debt deal was arranged in August for $30M, with a ``major international bank``.
If the deal goes through Scola will own 78% of the company. If he exercises his warrants he will own 88%.
The bank gets a nice off-take deal though. They get 208 monthly tonnes of copper (459K lbs) for 48 months. Planned production for the operation is 600 monthly tonnes of copper cathodes (1,323K lbs).
At $3 copper per lb, this gives Scola/Zaruma $2.6M monthly gross revenue (there is also a price participation on top of this from the off-take lbs). They estimate it will cost $1.15 to produce a lb. That means monthly costs of $1.5M (plus corporate G&A and such). It looks like Scola can still make money, but he will need the copper price to remain high.
It clearly doesn`t have nearly the potential as Century Mining.
I think Zaruma approach might be to use the copper cash flow to advance the gold part of the property. I think (with development and upgrade of the processing operation) they could fast track 25,000 gold ounces per year into production for 4 years (plus many more with exploration). I think that would make their operation more attractive/profitable. I think the long-term gold prospects might be the big prize here.
Anyway, as of this moment, Zaruma is still is serious trouble. They will likely go under if the bank deal doesn`t close.
I wonder if Scola with do anything with the property if the deal closes and if he is able to make the operation work (profitably). Will he bundle it up with other base metal assets to grow it as base metal vehicle or will he bundle it with one of his other gold vehicles or will he keep it as a stand alone company and try to grow it organically. Perhaps his decision will depend on which medals perform the best, coupled with other discounted opportunities he may find in the future.
I do have to agree with everybody that you keep this blog ticking.
Even though 90% of what you write goes way over my head,
I do look forward to your comments
Thx
Blevit
In my best dreams, Century’s Board would hand Prod 5 a list of potential CEO‘s and ask for comments. Of course, this would entail the usual non-disclosure agreements to be in place prior to anything happening. I cannot speak for Prod 5; however, I can reasonably prognosticate this non-disclosure agreement would not be a problem. If this happened, the end result would be that Century Board would have a better CEO down-select, Prod 5 would receive a well deserved consulting fee, and the SH’s would benefit in the long run from a good selection. To ignore this in-depth knowledgeable resource (Prod 5) would truly be foolish on the part of our board that is supposed to look after SH value.
So.... The BIG question now goes out to Prod 5. Exactly who should be on your list of the 5 top contenders for Century's CEO position?
I am sure Prod05 will continue to write and share his views coz deep in he is crystal clear that his views/works are truly needed. Similarly, deep in the bones of most blog attendees, we know his works carry vital updated info only he can deliver. One can read the world tro all the countless sources in the net but one can only truly understand CMM tro his works and the works of many other concencious contributors in this blog.
As for me, this is THE vital source of info from which I derive better understanding of CMM and as this understanding grows, so has my share holding.Granted all
investings contain risks and to mitigate and reduce such risks, knowledge/info of what one invest on must be adequate to say the least. Hence i value the contents this blog brings above analysts's reports.On his said words "..I refuse to let Century becomes another NSM. I refure to let my investment in Century to become Zero. I refuse to let Century shareholders lose all of their investments if I can expose the situation before it happens.." "If NSM shareholders has a blog like this then maybe they could have sounded the alarm bells before it is too late"- I must say i feel extremely fortunate to have invested along side of him. With such unbending morale, knowledge, timly info, this CMM blog and the internet, we already are porcupines and not some meat or hamburgers.
To me, Prod05 is half the blog, Carib is our guardian angle and Chillby frequently provides the explosives. As for yours truly? oh dear, he is panting and trying hard to get up to speed!
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