Hope everyone has a very happy and healthy New Year and CMM finally gets revalued.
Cheers R
Friday, December 31, 2010
Thursday, December 23, 2010
$4M PP is Closed
BLAINE, WASHINGTON--(Marketwire - Dec. 23, 2010) -
NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to announce that it has closed its previously announced private placement of units of the Company ("Units"). The Company issued an aggregate of 10,324,600 Units at a price of C$0.39 per Unit for gross proceeds of C$4,026,594. Each Unit consisted of one common share and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant is exercisable for one common share at an exercise price of C$0.60 per share for a period of 18 months from the closing date. The placement was completed by a syndicate of agents led by Haywood Securities Inc. and including Byron Capital Markets and Union Securities Ltd. (collectively, the "Agents").
The Company paid a cash commission of 6.5% of the gross proceeds and issued compensation options to the Agents equal to 6.5% of the Units sold, entitling the Agents to purchase Units at an exercise price of C$0.39 per Unit for a period of 18 months from the closing date.
All securities issued in connection with the private placement are subject to a four-month plus one day hold period from the date of issuance.
The Company intends to use the net proceeds of the private placement to advance the Lamaque gold mine in Val d'Or, Quebec through the final commissioning stages of the operation.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold within the United States, absent such registration or an applicable exemption from such registration requirements.
About Century Mining Corporation
Century Mining Corporation is a Canadian junior gold producer and holds strategic land positions in Canada, the United States and Peru. The Company's strategy is to grow to an intermediate gold producer through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.
On behalf of Century Mining Corporation,
"Keith Hulley"
Interim CEO
Caution Concerning Forward-Looking Information
This press release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws including with respect to the intended use of proceeds raised in the private placement. We use words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in gold and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our South American activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis included in this Annual Report, in our Annual Information Form and in other filings made by us with the Securities and Exchange Commission and with Canadian securities regulatory authorities and available at www.sedar.com.
While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information.
FOR FURTHER INFORMATION PLEASE CONTACT: Peter A. Ball
Century Mining Corporation
Vice President Investor Relations
(360) 332-4653 or Toll Free: (877) 284-6535
(360) 332-4652 (FAX)
pball@centurymining.com
www.centurymining.com
NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to announce that it has closed its previously announced private placement of units of the Company ("Units"). The Company issued an aggregate of 10,324,600 Units at a price of C$0.39 per Unit for gross proceeds of C$4,026,594. Each Unit consisted of one common share and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant is exercisable for one common share at an exercise price of C$0.60 per share for a period of 18 months from the closing date. The placement was completed by a syndicate of agents led by Haywood Securities Inc. and including Byron Capital Markets and Union Securities Ltd. (collectively, the "Agents").
The Company paid a cash commission of 6.5% of the gross proceeds and issued compensation options to the Agents equal to 6.5% of the Units sold, entitling the Agents to purchase Units at an exercise price of C$0.39 per Unit for a period of 18 months from the closing date.
All securities issued in connection with the private placement are subject to a four-month plus one day hold period from the date of issuance.
The Company intends to use the net proceeds of the private placement to advance the Lamaque gold mine in Val d'Or, Quebec through the final commissioning stages of the operation.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold within the United States, absent such registration or an applicable exemption from such registration requirements.
About Century Mining Corporation
Century Mining Corporation is a Canadian junior gold producer and holds strategic land positions in Canada, the United States and Peru. The Company's strategy is to grow to an intermediate gold producer through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.
On behalf of Century Mining Corporation,
"Keith Hulley"
Interim CEO
Caution Concerning Forward-Looking Information
This press release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws including with respect to the intended use of proceeds raised in the private placement. We use words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in gold and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our South American activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis included in this Annual Report, in our Annual Information Form and in other filings made by us with the Securities and Exchange Commission and with Canadian securities regulatory authorities and available at www.sedar.com.
While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information.
FOR FURTHER INFORMATION PLEASE CONTACT: Peter A. Ball
Century Mining Corporation
Vice President Investor Relations
(360) 332-4653 or Toll Free: (877) 284-6535
(360) 332-4652 (FAX)
pball@centurymining.com
www.centurymining.com
Thursday, December 16, 2010
Wednesday, December 15, 2010
SP in 2011
As a recent shareholder and follower of CMM I very much enjoy most of the chat that I read and find it both entertaining and sometimes informative. As a C.A.
Firstly lets take off the table the macro items such as a major retreat or growth spurt in the markets in general, large changes in the US, Canadian dollar exchange rate etc etc. Assuming the big picture items, which can and do effect the share prices of all stocks albeit sometimes differently, remain the same we also need to assume that grades and recovery rates too are not negatively effected by actual rates. Having stated some caveats I do believe that some writers are in danger of doing exactly what management has frequently been accused of in recent months and that is of being “over optimistic”. By setting the bar too high and creating the expectancy regarding the financials for 2011 i.e. the short term outlook we are not doing ourselves any favors.
Let’s look at another set of forecasts and assumptions. If we assume; the Lamaque revenues start in the second quarter, say 52,500 ozs for the remainder of the year, and Sao Juan 20,000 ozs and gold prices average $1,250 in 2011 gross revenues would come in at $90.6m. I’m not sure I understand fully the impacts of the Deutschbank arrangement but believe that CMM gets $561 plus US$88 revenue for each ounce and is obliged to deliver 8004 ounces in 2011. If this is correct then gross revenues would have to be adjusted downwards by $4.8m bringing them down to $85.8. Assuming a cost per ounce at Lamaque at say $700 for 2011 and $600 for Sao Juan then the gross profit would be $28.875m for Lamaque and $13m for Sao Juan before the Deutschbank adjustment.
The next big unknown is what will the corporate admin, deprecation and other overhead costs be. I note they jumped considerably in this last quarter. I’ve assumed $4 million a quarter as depreciation must be considerably higher after all the equipment purchases and improvements to the Lamaque mine. Take this $16 million off the gross profit and you have a pretax profit of $21.1m. Without any income tax on this profit, since I have no idea what any accumulated brought forward losses may be, and assuming warrants and options are all exercised based on 443m shares the FDEPS comes out at
4.8 cents a share or half of BullionBull’s forecast.
One should also bear in mind that if Lamaque’s production is only treated as revenue from the second quarter that we may not have a good idea of how things are shaping up until the second quarter’s numbers are released around August 2011.
Does anyone have a good hold on a p/e ratio of a company(s) that is a year or two ahead of C.M.M.?
This is just one more perspective which hopefully adds something to the communal pot.
Hopefully my lesser expectations will be exceeded and I too will not be disappointed. 2012 in turn will produce undoubtedly even better EPS. I am certainly looking at a 2 year horizon at this stage which I will modify as things unfold. My advice is that we should all treat ourselves to a dose of patience this Christmas. Oh and a very Happy one to all. Off to the beach now…
Thursday, December 9, 2010
Fair Shareprice Valuation for 2011
What does everyone think a fair shareprice valuation for 2011 would be?
Here's my thoughts:
Assuming for 2011 at Lamaque we are able to get good quality grades as well as solid tonnage, a conservative estimate of total ounces (barring no major setbacks or delays) produced out of Lamaque would be 70,000 oz. This of course is less then the roughly 84,000 oz Century is planning for, but like I said its a conservative estimate based on past performance. For the sake of this exercise, lets assume commercial production is declared at the end of Q1 2011. This gives us 3 full quarters of recognized revenue from Lamaque.
We can expect higher costs out of Lamaque in the beginning, so lets also say Century is able to realize an average net profit per ounce of $450 ($1400 PoG - $950 cost per ounce). Thus, $450 x 52,500 = $23,625,000 in profit from Lamaque.
With San Juan, we can reasonably conclude that it will continue to be its reliable self and generate a minimum of 20,000 oz for the year. Since costs out of San Juan are lower, $658 per ounce in Q3 2010, lets assume they can get costs a bit down to $650 for 2011 (which is conservative considering they're projected to be $550-$570 over the LOM). Thus, 20,000 oz x $750 profit per ounce = $15,000,000 profit from San Juan.
Thus, the total profit from Lamaque and San Juan combined could be $38,625,000 based on the above assumptions. This equates to $0.10 per share fully diluted.
At a conservative PE ratio of 10, this comes out to a projected shareprice of $1.00, a solid increase from our current levels.
It's all up to management at this point.
Here's my thoughts:
Assuming for 2011 at Lamaque we are able to get good quality grades as well as solid tonnage, a conservative estimate of total ounces (barring no major setbacks or delays) produced out of Lamaque would be 70,000 oz. This of course is less then the roughly 84,000 oz Century is planning for, but like I said its a conservative estimate based on past performance. For the sake of this exercise, lets assume commercial production is declared at the end of Q1 2011. This gives us 3 full quarters of recognized revenue from Lamaque.
We can expect higher costs out of Lamaque in the beginning, so lets also say Century is able to realize an average net profit per ounce of $450 ($1400 PoG - $950 cost per ounce). Thus, $450 x 52,500 = $23,625,000 in profit from Lamaque.
With San Juan, we can reasonably conclude that it will continue to be its reliable self and generate a minimum of 20,000 oz for the year. Since costs out of San Juan are lower, $658 per ounce in Q3 2010, lets assume they can get costs a bit down to $650 for 2011 (which is conservative considering they're projected to be $550-$570 over the LOM). Thus, 20,000 oz x $750 profit per ounce = $15,000,000 profit from San Juan.
Thus, the total profit from Lamaque and San Juan combined could be $38,625,000 based on the above assumptions. This equates to $0.10 per share fully diluted.
At a conservative PE ratio of 10, this comes out to a projected shareprice of $1.00, a solid increase from our current levels.
It's all up to management at this point.
Saturday, December 4, 2010
Adrian McNutt (Chief Operating Officer) - exercised CMM options (25K)
25,000 options @ $.35 exercise price
Transaction/exercise date: Nov. 30`10
SEDAR file date: Dec. 3`10
Option expire date: Nov. 30`10
Transaction/exercise date: Nov. 30`10
SEDAR file date: Dec. 3`10
Option expire date: Nov. 30`10
Thursday, December 2, 2010
Canadian miners predict 2011 to be year of the deal
http://www.theglobeandmail.com/globe-investor/canadian-miners-predict-2011-to-be-year-of-the-deal/article1819713/
Sets up very nicely with CMM's proposed ramp up. hhhhmmmm??!!!??Glorieux
I briefly glanced at your note posted on Agoracom, about Peter Ball having a good presentation in the UK.
I have a couple of comments:
1) I briefly noticed someone with a Barclays account buying Century shares at $.43 today. Barclays is not a typical CMM buyer. Barclays is a UK bank. Maybe this was one of the anticipated UK buyers.
2) I have always known that the UK is a severely underserviced market in the gold space. There are only a handful of gold mining companies listed on the London and AIM stock exchanges. This is only a tiny fraction compared to the Toronto exchanges, with its hundreds of listed gold companies.
Also, London plays a key role (a doorway in a sense) for Russians, other europeans and middle east investors looking to invest in international gold mining producers. This is also why many of the major Russian mining companies are listed in London.
London itself has loads of institutional capital to invest.
Century would be wise to keep aggressive presence in the London market. Century should eventually look into listing on the AIM (and once big enough, try applying to the London Exchange). There are hardly any mid-tier and junior gold producers listed on the AIM and the London Exchange. There is an extremely underservice space in that market that matches up exactly what Century Mining has to offer.
I have a couple of comments:
1) I briefly noticed someone with a Barclays account buying Century shares at $.43 today. Barclays is not a typical CMM buyer. Barclays is a UK bank. Maybe this was one of the anticipated UK buyers.
2) I have always known that the UK is a severely underserviced market in the gold space. There are only a handful of gold mining companies listed on the London and AIM stock exchanges. This is only a tiny fraction compared to the Toronto exchanges, with its hundreds of listed gold companies.
Also, London plays a key role (a doorway in a sense) for Russians, other europeans and middle east investors looking to invest in international gold mining producers. This is also why many of the major Russian mining companies are listed in London.
London itself has loads of institutional capital to invest.
Century would be wise to keep aggressive presence in the London market. Century should eventually look into listing on the AIM (and once big enough, try applying to the London Exchange). There are hardly any mid-tier and junior gold producers listed on the AIM and the London Exchange. There is an extremely underservice space in that market that matches up exactly what Century Mining has to offer.
Wednesday, December 1, 2010
Century Closes $2.5 Million Flow-Through Private Placement
BLAINE, WASHINGTON--(Marketwire - Dec. 1, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM - News) announced today that it has closed a private placement financing of 5,555,555 flow-through units (the "Flow-Through Units") of the Company, at a price of $0.45 per Unit, for gross proceeds of $2,500,000. This financing was originally announced by the Company on November 9, 2010. Each Flow-Through Unit consisted of one common share issued on a flow-through basis and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant is exercisable for one common share at $0.60 for 18 months from closing.
The proceeds of the private placement of Flow-Through Units will be used for the diamond drill program at the Bedard Dyke zone and exploration drilling of other priority targets at or in the vicinity of the Lamaque mine.
The Company paid finder's fees of $175,000 and issued 277,778 compensation warrants. Each Compensation Warrant is exercisable for one common share at $0.45 for 18 months from closing. All securities issued under this private placement will be subject to a four-month hold period.
About Century Mining Corporation
Century Mining Corporation is a Canadian junior gold producer and holds strategic land positions in Canada, the United States and Peru. The consolidated production outlook for the Company is approximately 36,000 to 40,000 ounces in 2010, 105,000 ounces in 2011, and 120,000 in 2012. The Company's strategy is to grow to an intermediate gold producer through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.
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