Friday, March 18, 2011
Questions for Peggy Sue...
Peggy Sue, let me say at the outset that I respect your sincerity and your opinion. And I am not going to try to change your mind. But I would like to ask you a few questions: (1) Do you think that Daniel Major acted ethically and in the interest of all shareholders since he became CEO & director of CMM? (2) Was Daniel Major telling the truth in the CC? (3) Does the shareprice of WTG reflect its intrinsic value, or is it artifically propped up (because Finskiy controls over 94% if its shares)? Do you believe that the current & recent shareprice of CMM reflect the true intrinsic value of the company? (4) Do you see any conflicts of interest in the actions of Daniel Major and the BoD of CMM, as well as its major shareholders (Finskiy & Scola)? I look forward to learning of your answers.
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58 comments:
My difficulty with Peggy Sue is that she claims to have been burned before but the only thing she uses to substantiate that claim is to mention being screwed by some other company (a complete unrelated incident). In my view, she uses that example to gain credibility.
Typically people who have been burned know to look for signs of corruption.
If she really wants to make a point she should point out the specific assets behind WTG valuation.
Whether or not Mr. Finsky has access to cash is irrelevant at this juncture. He doesn't want to pay a fair price for CMM and he will do whatever it takes to make sure he pays close to nothing. And that would include crashing the WTG SP at the "appropriate" time. This company is just a vehicle for theft.
Can anyone explain why Century would have to pay 13.5 million to WTG should the BOD recommend shareholders accept a better offer from another company? Was it not WTG that proposed this merger.
Dear Peggy Sue;
If CMM is in such dire financial straits, then why is Max Finsky trying to INCREASE his exposure to CMM thru White Tiger? Instead of trying to get out of dodge he's trying to get CMM shares any way he can.
He had 2 choices:
1. Buy CMM on the open market (hard when the sp rising and doubles in less than 3 mo)
2. Buy CMM thru a pump & dump shell company (that you happen to own most of the paper) and use this hyperinflated currency to scoop up CMM assets for a song.
Suppose your neighbour owns a Toyota Prius and got his greedy eyes on your Hummer. So he comes to you and starts bashing the Hummer (gas guzzler, low mileage, not eco friendly, expensive insurance, big monthly payments )...while simultaneously pumping up the Prius (low cost for gas, excellent mileage, eco friendly, cheap insurance... and best of all, its paid off so no more monthly payments!)....WOW! and then he offers to SWAP/TRADE his $15K Toyota Prius in exchange for your $100K Hummer (yeah coz he's such a nice guy doing you such a big, big favor!)
Well, would you take the deal or not?
LMAO!
I’ve asked this before, I want to do some research on White Tiger Gold (WTG), and can you please direct me to WTG’s website because I can’t find anything about this company. I am trying to do extensive DD, but not even basic is getting me anywhere.
This tells me that WTG is nothing but a price manipulative scam run by bullies that are trying to steal CMM away from its true owners, us the shareholders. I don’t even know if a fair price is worth it anymore lol, this is how ridiculous WTG’s credentials are.
Peggy, It seems that U have annoyed fellow bloggers by your persistent claims/views n failed/ignore to reply to repeated requests for U to substantiate your views. This will not do you any good n bad for your credibility too. Hope U realise that
Can anybody answer this question?
Post # 1433
LINK:
http://www.hotstockmarket.com/forum/thread/40025/cmm-century-mining-corp-tsx/1420
Oh, and I sent an e-mail to Carib in regards to that forums post # 1433.
I really don't know what Mr Mouser is talking about in that post other than he's looking BACKWARDS when what he really should be doing is looking FORWARDS.
Yes CMM only mined 14,000 oz out of Lamaque in 2010 but this was because of 3 mo delays with the equipment arriving and processing ore at lower grades not part of the R&I.
Dec 2010 Lamaque was mining around 7-800 tpd (or roughly break even). January, February and March are the important numbers and these have consistently been in the 1200 tpd. Yes even in Feb they were mining this much and stockpiling the exra ore on the side while the crusher got fixed. (Another small detail that was inexcusibly ommitted from the Mar 8 NR and Mr. Major finally fessed up during the CC...Shame on you!)
Mr Major himself said in the Feb CC that 1200 tpd is expected Q1 with increases to 1500 tpd and 2000 tpd by H1. Now the 2000 tpd is moved into H2. Big Whoop.
Even with 1200 tpd the whole rest of 2011, Lamaque is cash flow positive...get it? 1200-800 = 400 tpd...should be easily in the black.
But we won't see the Q1 numbers until April. WTG/CMM trying to *ram* this merge through before Q1 numbers were out... Coincidence??
I don't think anyone can take the Mar8 NR seriously, or make any claims about CMM being close to bankruptcy until we see those Q1 ORE MINED numbers.
If they are 1200 tpd or better (which I expect them to be) then no doubts in my mind this company is on the road to recovery.
Or, Mr Mouser and others of his ilk can sell on the hysteria using old Q4 data. When CMM shows 2 consecutive profitable quarters, then it will be much safer to buy in.... though be prepared to pay more than .54c.
Payday thanks for the info once again. I see many have done there DD on CMM on this blog. I do greatly appreciate mouser’s opinion on the matter, seeing how he along with another person called Northwind sort of unknowingly directed me to buy CMM.
On another note, is it possible for the CEO to falsify a NR and/or is it illegal to omit very important information about CMM to which it would benefit the company and its shareholders? It just doesn’t sound fair that a CEO of a major corporation would present a compelling and motivational argument that WTG – merger is in fact a good idea. I am very sure, we would be singing a different tune today if that was the case, but it seems the CEO has done everything to keep such information out of our hands.
Woops, my error, it meant to say "Wouldn't" and not wound. Maybe Carib can correct it then delete this message...
Nt300, the way I see it there is only two options:
1. The CMM BoD is lying about 800 tpd ore mined being the *break even point* for Lamaque.
or
2. The CMM BoD is lying about the the cash flow situation (saying the mine is unprofitable when it really is).
If it turns out they really need 1200 tpd to break even instead of 800 tpd we were previously informed, then yeah, CMM is in the red (which then begs the question, why the hell would Finsky want more of it then?)
Either way this management is lying about something.
Its upto us to ferret out the truth.
I'm betting its #2.
nt300, I got your email referring me to mouseman's post. Frankly this inflammatory and negatively biased post is not intended to influence your vote, but to get you to sell youe shares NOW. He smells blood in the water, and is preying on the doubts of shareholders that what he is suggesting could really happen. The sharks are after your shares.
The is NO, repeat NO CHANCE of Century going bankrupt.
There are two kinds of cash positive situations. The first is Operating Cash Flow Positive and the second is Free Cash Flow Positive. Century has certainly become Operating Cash Flow Positive. Their revenues from gold production certainly exceed the cost of production.
Whether you are Free Cash Flow Positive depends on whether the net revenues from Operating Cash Flow positive are enough to cover capital costs to develop and expand your operations. If not, and you don't have other avenues of funding capital expenditures, then you have to slow down development and expansion until your accumulated net revenues can fund your capital costs. It just takes a little longer.
Here is an earlier comment from me on this subject:
(To follow - comment length exceeded)
Continuation of last comment:
Production, I have nothing but the utmost respect for your views and in the years that we’ve both been posting on this blog, I can’t ever remember having a difference of opinion with anything you have posted. You’ve probably made more quality posts than everyone else combined.
However what makes a blog sometimes is an exchange of differing viewpoints, respectfully submitted, and I must respectfully take an opposing view to your latest posts. You may be right about the need for recapitalization, but I’m not convinced.
On the February 3 CC Daniel Major told us that he expected production rates of 1200 tpd in Jan and Feb, increasing to 1500 tpd for March and April and further increasing to 2,000 tpd for May – Dec.
The actual reported mill throughput for January was 944 tpd and 788 tpd for February. So instead of processing 70,800 tonnes for these two months, we would have processed 51,328 tonnes – a difference of 19,472 tonnes.
Assuming a grade of 3.5 g/tonne, the value of this lost production at $1400 gold is less than $3 million. Total revenue for this period would have been approximately $7.8 million less the $1.8 million to service the DB loan. So instead of generating $9 million in net revenues, we generated $6 million. Is this enough to put us in the crisis mode intimated in the NR? I think not. I believe at $3 million/month we are probably operating cash flow positive, in fact I heard some time ago that our nominal burn rate is about $2 million/month. How much of the $14.2 million in cash raised in the Sept – Dec period have we burned through and how much cash did we have before we raised more via the PP’s? There should be a good chunk of that left and at $1400+ gold San Juan should be producing free cash flow of about $1.5 million/month. I believe DB also released additional funds.
I don’t think there was a news release in February because the temporary loss of the crusher was not enough of a material event in a start-up operation prior to declaration of commercial production. The only real cost was the $200,000 cost of repair, because the lost throughput is only deferred to the following month(s) until the mill is operating at full capacity. I believe the motive for the NR was to lower the share price to increase the success of a planned takeover offer and it was perfectly timed.
Our share price was hammered today by the infamous “Anonymous” who had sales of 643,000 shares against buys of 20,000, including a sale at market of 275,000 shares – 30 minutes before the close. Conversely WTG was up 13% on volume of 23,500 shares – a big volume day for them. Finiskiy can make WTG’s share price whatever he wants it to be.
Someone reported on SH earlier today that they had talked to Hugh (Blakely the CFO) and was told that Century had no thought of going to the market with paper, i.e. no plans to raise additional funds at this time.
Keith Hulley told us on his final conference call on November 16 that Century had no need to raise additional funds. This assurance came after we had only produced 480 tpd in October so obviously they felt they had sufficient funds at that time until the company became cash flow positive. Increasing production from 480 tpd in October to 1188 in February is probably in line with what they expected at the time. Surely they had contingency funds of more than $3 million.
So are we in a good cash position now? Who knows, but we should be putting 1500 tpd through the mill now and at that rate that will generate revenues (net of DB loan) of $6 million/month. Combined with San Juan’s contribution of $1.5 million/month, we should have about $5 million/month for capital expenditures.
March 9, 2011 8:29 PM
"I believe the motive for the NR was to lower the share price to increase the success of a planned takeover offer and it was perfectly timed."
Can't agree with you more carib
nt300, "Comments" cannot be edited - only deleted. I notice that I made a couple of typos myself, but once published comments cannot be changed.
"Posts" can be edited, but only Blog Members can "post".
Carib, thank you very much for your explanation. It all makes a lot of sense to me now. Though you do understand why I asked for an explanation, and I thank you very much. Hopefully others will read your comments along with others such as production05, Payday to name a few and learn what seems to be the dead on truth of the matter. We need to fight for our company regardless how many shares one holds.
Thanks for the clarification between operational and free flow cash positive. Makes me wonder how with over $1M in net profit per month they went with cap in hand to White Tiger for a $200k bill?! Where is all of the cash going? Condos in the BVI?
"Increasing production from 480 tpd in October to 1188 in February is probably in line with what they expected at the time."
FWIW, in the November, 2010, investor presentation, the stated prediction was 1,500 TPD by Q1/2011.
Carib, is it possible Lamaque is getting really low grades? That would increase tpd needed to reach profitability. CMM has has problems with lower than expected grades before. How would getting 2.5 g/ton affect operations?
Thank you for your insight.
Good question, Payday! One wonders why a new TSX-listed company (with grandiose plans, but without even a website) wishes to have its headquarters in the BVI?! Perhaps tax-dodging? or....????
Payday, If you read the news releases carefully you'll find that Century entered into an agreement for a $800k bridge loan one day prior to the cone crusher failure
dave peters, 1,500 TPD by Q1/2011 means by the end of Q1. Major said in the CC that the numbers would be 1200 tpd for Jan & Feb, and 1500 tpd for Mar & Apr.
I don't respond to questions posed by "Anonymous" posters. How many times do I have to repeat not to post as Anonymous. Sheech!
You think the 800$k loan 1 day prior to the cone crusher "failing" was a coincidence?
Good point about the possible lower grades. They were definitely lower in Q4 but I thought that problem has been rectified now.
Using all info available in public domains I could find n every other piece of detail I could glenced. I connect the dots.
The WTG side:
-no white tiger gold web site for this co listed as WTG.TO (not WTG.V mind U)
-glaringly insufficient info explaning the value of their assets--the 2 russian mines n 3 russian licenses including their respective land parcel
-the listing was sometime in Dec/2010 (some +/- 4 months ago)
-75%? or 90%? controlled by one individual?
-daily shares trading vol extremely low
The CMM side:
-DM was in the operating committee for sometimes without any mention
-then he was CEO
-All these times, we were told an intanational search for a CEO by an international placement agency was on going
-DM n Cowely were working (together?) in russian in a moly mine for some times?
-P Kent resigned? retired?
-board seats were not refilled up to the appropriate nationality ratios for quite sometimes
-out of the blue CMM was cash strapped to the point of needing to shut down some production functions/activities purportedly caused/triggered by a crusher breakdown for 9 days
-released the hightly negative over-blown NR
-omitted/ignored to include in the NR there was a stand by crusher (a jaw crusher I suppose). This matter was being queried in the CC.
-omitted to report the positive info on the stockpiled ore which could be used to reduce the impact of the crusher breakdown
--some unrevealed bridging loan from WTG
-sp gapped down badly
-the WTG deal was announced
There seems to be too many conveniences, coincidences ..more than I am willing to accept.
I am rather annoyed n amazed with some of these n am disturbed somewhat by several of them. A message seems to be clicking:-
"All the happenings point to the fact that the mine is doable. Things are getting better. Lamarque Flats, BD are well done up n North wall is progressing well. NI43-101 resource counts is 6moz current n should see it hitting +/-8moz when the upcoming update is released. The mill is up n running n fully debugged. Milled tonnages are upping from 1200tpd to 1500tpd to 2000tpd fast. Cash flow positive n commercial production expected very soon. Grades averaging +/-3.5g/t. The often-mentioned 100,000oz Au annual production is not a joke--man, the duck is about to fly away. Better do something fast otherwise the darn thing will escape for sure!!"
As they are fond of saying, the rest is history
I am biased. Civilised counter arguments welcome. Show me my info/deductions are wrong. Show me some good convincing proofs n I may even change my mind.
Wingfong, good points, it sounds like you hit the nail on the head. We are being played here, like making CMM sounds like we need massive help which we really don't. I am all for mergers, but it has to be a reputalbe company that will offer good value and not try and rip us off like WTG is trying to do.
The thought that WTG stock price is above $3.00 just boggles my mind, it's a company without substance.
Cash flow positive n commercial production expected very soon. Grades averaging +/-3.5g/t. The often-mentioned 100,000oz Au annual production is not a joke--man, the duck is about to fly away. Better do something fast otherwise the darn thing will escape for sure!!"
------------
Wingfong, thanks for clarifying the 3.5g/t. I think if it was way less than that (2.5 or less) then CMM would have some more delays/troubles. Good to hear that issue is resolved. I was not sure.
Also good duck analogy! We all holding the Goose that's about to start laying GOLD eggs.... too bad Finsky & Co. put a noose around her neck.
I find it funny that Finskiy wouldnt have CMM buy WTG to expose it to TSX listing and such. Funny by WTG eating CMM he gets more shares and the other way around hed probably have a much lower percentage control. Would be the sensible thing to do otherwise, an upcoming producer about to hit 100k oz expanding into russian explored mines with money for capital expenditures. Must say it smell like rotten sturgeon.
I am not a good curler and my best curling shot is to throw the rock down the ice at break neck speed into the house ..... everyone runs for cover hoping that the shrapnel won't get them. It's now a whole new game.
Consider this shot. Efforts are made (the shot) to bring Deutche Bank into the game. Are they aware of recent happenings? Are they aware of the growing retail investor sentiments against the Merger? Are they at risk? Are they prepared to step in to protect their interests? I would have no problem making this shot if someone has a name and phone number. Maybe Messrs. Major, Finskiy + Insiders would feel uncomfortable and start to realize that a well connected global investment base is becoming overly rebellious.
Oh by the way.... I have another of a stinker shot.... the unionized labour force in Val-d'or. I wonder what the Union leadership would think of the present goings on?
Which reminds me, last night I watched the Youtube video of our San Juan Miners marching ever so proudly in formation representing us. They made me proud to be associated as an investor in Century Mining.
If this proposed merger is not good for us it is most likely that it is not good for our dedicated work force. Could Val-d'or and San Juan be financially bled to advantage the Russian mines?
Well said, Wingfong (about the duplicitous shenanigans of Daniel Major & Co). How can this guy look at himself in the mirror if he has one grain of integrity or honesty?! After his despicable performance as CEO at CMM, I doubt if he is going to get any employment after this debucle runs its full course. Hopefully he'll get what he deserves from the Canadian justice system. Oh, I forgot, the headoffice of the company he hopes to lead is in the BVI. How convenient?!
This whole shareholder revolt reminds me of the good old days when Peggy Kent made her unsuccessful merge- takeover of Sulliden. SUE shareholders were pissed off and rightly so when all of that deferred stripping nonsense came to a head.
I hope CMM shareholders are as victorious defeating this White Tiger deal as Sulliden was back then!
Good luck to all!
(posting 1 of 2)
Guys, my apologies for not replying sooner as I'm just getting back online now. To bigjohn37’s questions, then I’ll address the other comments in a subsequent posting (only because I want to get to bed).
(1) Daniel Major’s ethical conduct: to tell you the truth, I don’t know the answer here. I was pleased with his performance until the crusher went down and that press release came out
(2) Daniel Major telling the truth in the conference call: please be more specific here and I’ll give you my honest sense in a follow-on comment
(3) WTG share price reflect its intrinsic value: no, I think it’s ahead of itself – actually, this may be an understatement. As you point out, there’s no real float… so it’s not a “true market” valuation. BUT, I need much more information about these open pit assets: grade, reserves, etc. to discern what WTG is truly worth. I’m hoping for some clarity here in the MIC and I’ll be asking Daniel Major and others about it… clearly we don’t have enough information to really make the call yet – do you think we do?
(4) Conflicts of interest: Yes, you are quite right, I do see conflicts of interest. Actually, probably major conflicts of interest. BUT, I think Daniel Major is loaded up with Century options – let’s ask him and if he can disclose it, post it up here. How much WTG does he own? (Does that even matter, because he can be compensated in other ways if you believe that there are all kinds of side-dealing... probably not.)
You wrote that you’re not going to change my mind and I want to be clear here: I bought shares in the last private placement that didn’t close for over a month! That private placement was under-subscribed after a month of marketing. Please ask Peter why. If you don’t trust Peter, call Haywood and ask them. Perhaps the mine is currently – at this exact moment – cash flow positive. Or, perhaps it takes another $20m to $50m to get it to where we all feel it should already be. Let me be the first to say, I don’t know.
What do I know? The guys who you feel are trying to steal this company, swooped in once before and gave it a new lease on life. Investissement Quebec was done with Peggy and Century. We owed all kinds of money and had an environment clean-up obligation – remember that news item where Peggy was shown fleeing from a reporter and taking shelter in her car. I believe that was a Hail Mary pass for the company.
What else do I know? No one has come after this asset in the past 5 years – I don’t think that anyone shows up now. Moreover, they’d have to negotiate with Max, so it’s not going to happen.
We don’t know that Century is NOT worth 61% of a combined entity with WTG, though the outrage here shows many people believe it’s worth more. I’m waiting for more info. How much more would it be worth… 70%?
(posting 1 of 3)
Guys, my apologies for not replying sooner as I'm just getting back online now. To bigjohn37’s questions, then I’ll address the other comments in a subsequent posting (only because I want to get to bed).
(1) Daniel Major’s ethical conduct: to tell you the truth, I don’t know the answer here. I was pleased with his performance until the crusher went down and that press release came out
(2) Daniel Major telling the truth in the conference call: please be more specific here and I’ll give you my honest sense in a follow-on comment
(3) WTG share price reflect its intrinsic value: no, I think it’s ahead of itself – actually, this may be an understatement. As you point out, there’s no real float… so it’s not a “true market” valuation. BUT, I need much more information about these open pit assets: grade, reserves, etc. to discern what WTG is truly worth. I’m hoping for some clarity here in the MIC and I’ll be asking Daniel Major and others about it… clearly we don’t have enough information to really make the call yet – do you think we do?
(4) Conflicts of interest: Yes, you are quite right, I do see conflicts of interest. Actually, probably major conflicts of interest. BUT, I think Daniel Major is loaded up with Century options – let’s ask him and if he can disclose it, post it up here. How much WTG does he own? (Does that even matter, because he can be compensated in other ways if you believe that there are all kinds of side-dealing... probably not.)
You wrote that you’re not going to change my mind and I want to be clear here: I bought shares in the last private placement that didn’t close for over a month! That private placement was under-subscribed after a month of marketing. Please ask Peter why. If you don’t trust Peter, call Haywood and ask them. Perhaps the mine is currently – at this exact moment – cash flow positive. Or, perhaps it takes another $20m to $50m to get it to where we all feel it should already be. Let me be the first to say, I don’t know.
I'm being blocked from replying. Have tried several times now... what gives?
Hi Carib
I am extremely grateful to read your piece in 2 parts explaining the strength of CMM and other money-flow issues. I would like to urge U, Prod05, RE and many other experience bloggers in our midst to continue educating retail investors as to why CMM is not such a piece of junk that was made up to be by the other party. From the comments I have read, I sense that much of CMM's value, salient strength are not well known among many. I said it once n I want to say it again--There is so much gold
in Lamarque that if CMM is not an eventual near term success, then I must say it will probably be one of the greatest jokes in Canada's gold mining industry.
Peggy. break up your post to shorter lengths. pl try again. experienced it myself.thk there is no intended blockage. Cheers!
In the CC one theme that was recurringly being mentioned by DM n Cowely was exposure to "world class exploration potentials" in Russia which DM went as far as to claim that Russia is one of the world's top 3 mining jurisdictions with Canada n Peru being the other 2.
I find this theme rather odd. If one is exposed to writings by Lawrence Rouston, Brent Cook, Micky Fulp, Louise James, Vixtor Goncalves, Brien Lundin, Peter Grandich, John Kaiser, James West, Micheal Berry, Thom Calandra just to name some of them, the often mentioned juriadictions are Quebec, British Colombia, Yukon, Nevada, Mexico, Columbia, Peru, Australia, West Africa etc etc. From what I know, Russia was never even once mentioned! (correct me if I am wrong) ..cont
Secondly, we have so much gold in Lamarque waiting to be mined, exploration targets in Lamarque waiting to be expediated on, the whole San Juan's 220 sq KM asset hardly touched, the NWT n Alaskian properties we have not even set foot on. Then why does the company, at this point of time, need to gain exploration exposure in some unknown far-flung Russsian green fielsd? I find this rather disturbing...cont
I can only deduce that there is a calculated attempt to dangle some "sexy, far-flung romantic sounding" Siberian green fields to the unsuspecting, uninitiated investors whom they think are supposed to be gullible and hungry for fantasies, escapages and make-beliefs.
I suspect this is one part of a grand smoke n mirror game plan to make the unsuspecting, trusting investors feel good in something hazy, something that sound big and something they make sure you will not (if ever) be able to research on.
So is there any good reason for us to place our trust in the deal?
Fredericton..glad to know U have an eye on our dedicated workers. It escapes me in this time of tension n fury. Yes, if ever Val D'or n SJ be financially bled to advantage the Russian mines, then I must say it must be most unfortunate to say the least.
Peggy..."We don't know that Century is NOT worth 61% of a combined entity with WTG though the outrage here shows many people believe it's worth more..."
I am certain the outrage here is that:-
1) Fin & Co is perceived to be attempting to use their hugely inflated WTG shares as currency n hoping to exchange them for solid CMM shares that is backed by gold in the ground (no pun intented)
2) we already came to a conclusion that there is an extremely high probabilty n possibility that post combination, the WTG shares will trade below a dollar making the CMM shares facing a miserable price that is less than $0.40!
We don't like it one bit. How about U?
Hi Carib
The addition of the Finiskiy's planned takeover column is excellent. As per the $13.5 million termination payment which is an obscence amount to pay for a termination fee, should it happens, can shareholders take any legal action to reclaim this money from the directors under the following grounds:-
1) Incompetency and/or negligence
2) willful scheming off of CMM's asset (money included)
3) others
March 25 is around the corner. Don't tell me we are about to step on it??!!
I don't even think WTG is worth a 1 to 1 transaction with CMM shares anymore. There's just no substance, I've done my DD over and over again, and all I find is news articles on steroids claiming cash strapped CMM is in the brink of Bancrupsy and White Tiger Gold is to the rescue. If that were true, why is CMM trading at ridiculously low prices? Yes there’s absolutely no information on WTG, not even a website. Even the TSX does not possess much information on WTG.
Sorry but we are not interested in giving our shares away for nothing. It’s too bad the BOD for both CMM & WTG were doing back door deals, planning on swindling us out of our shares for months now. If they played there cards right, maybe they would have been succeed full, but at the cost of paying us what CMM is truly worth.
Facts are facts, IMHO this won’t change our minds about WTG and this merger.
Why did the "independent" board director, Mr Campoy, not issue a formal notice to Finskiy for him to exercise his warrants if the company was out of money at the beginning of February ?
This clause was clearly in the terms of the warrants and listed on Sedar in January 2010.
FundHolder - Finsky disposed of his warrants on Feb 2...then a week later WTG gives CMM a bridge loan for $800K.
I'm willing to bet the BoD approached Finsky about new funding back in Jan and Finsky responds he'll fund it through WTG.
The stench is there and its real.
Wingfong, during the CC Daniel Major said that Deutch Bank had given tentative approval and they don't see a problem getting consent from DB.
How it can be legal for the owner of both companies to give HIMSELF a $13.5M termination fee if his proposed heist falls through is something for the legal minds to sort out.
I think I heard someone refer to it as "unjust enrichment" or something like that.
I'm willing to bet that they didn't even approach Finskiy.
However, the clause would still be attached to whoever owned them - the notice should have been served.
Alternatively, the Board's recourse was to serve notice on Finskiy to buy a new PP.
The independent members of the board had a duty to the shareholders.
Wingfong wrote "In the CC one theme that was recurringly being mentioned by DM n Cowely was exposure to "world class exploration potentials" in Russia which DM went as far as to claim that Russia is one of the world's top 3 mining jurisdictions with Canada n Peru being the other 2."
I don't recall what the exact words used in the CC were, but in the news release the phrase used was "three of the top six global producing nations". Maybe on the CC, DM misspoke or you misheard?
Anyway, this article from seekingalpha lists Russia as the fifth largest, mentions Peru as the sixth, and Canada does not even make the top 6 list. Of course, this list will vary from year to year.
http://seekingalpha.com/article/208666-the-top-five-gold-producing-countries
This list from wikipedia (using 2006/2008 data) has Peru, Russia, and Canada in the 5, 6, and 7 places.
http://en.wikipedia.org/wiki/List_of_countries_by_gold_production
BTW, of course, I assume we are all talking about mining exploration potential for gold here. If we include other mining resources, of course, things would no doubt change.
I would assume we would definitely need a press release of some sort to be able to alert people that are not on any online blogs. The more exposure we can get the more we can make the no vote a sure thing. Whats the magic number btw in regards to 33percent of minority shareholders?
Fund Holder, you make some good points.
From the Jan 4`10 NR:
``If, however, the volume weighted average closing price of the Company's common shares on the TSX Venture Exchange is equal to or greater than CDN$0.60 for a period of 30 consecutive trading days following the first anniversary of the closing of the private placement, Century will have the right, upon 60 days notice to the holders of the warrants, to accelerate their expiry date.``
http://tmx.quotemedia.com/quote.php?qm_symbol=CMM
Looking at the 3 mth chart and the Price History table data, there appears to be 25 consecutive days where the share price was $.60 or above, before it conveniently fell back below $.60 with the March 8th NR.
Nevertheless, the agreement is about volume weighted average closing price for 30. That, to me, means not all 30 consecutive days needs to close at $.60, just as long as the average for the 30 days consecutive days is $.60. From just eyeballing, it certainly looks to average above $.60.
Now, with regards to the 60 days notice, why didn`t they give the 60 days notice at, say, around March 10th, and then demand the warrant money on May 10th. Then use the money on May 10th to pay back the bridge loan.
I don`t know if there are any out clauses (ie. convenent requirements). I also don`t know if this warrant exercise demand option only applies to certain percentage of the warrants (say the first x percentage).
There probably needs to be a lawyer go through the Shareholders Agreement document to figure all that out. You can find it filed on SEDAR on January 14, 2010. Pages 4 - 6 focuses on this area I think, but I haven`t actually looked at it closely myself, to figure out any possible loopholes.
Production, up until I started putting together the Chronology of Events, I too thought that we needed a 60-cent share price to force warrant exercise, but I believe the Shareholders Agreement takes precedence over any prior agreement.
Finiskiy has to provide up to $15 million in working capital on demand. If the share price is more than 30 cents, he has to exercise warrants; if it is less than 30 cents, he has to provide funding via a PP.
Thanks for clarifying this Carib. Also, on behalf of blog posters, thanks for putting the document together. I know how extremely busy you are in the other parts of your life.
Hi Peggy Sue; thanks for your sincere answers to my questions. Would you then agree with me that Daniel Major should be removed as CEO of CMM, if for no other reason, because of the huge conflict of interest his position represents. He obviously can't be an honest steward of our Company, when he is indebted to the Finskiy & Scola duo. I hope you can now post easily (because I am sure that Carib would not block your contribution to the dialogue).
(posting 2 of 2)
The last thing I know is that Max brings capital and a chance of attracting institutional investors. I realize that the self-dealing here makes the optics look very bad and that many would say institutions would shy away from this – it’s a good point. BUT, (i) there are no institutions in Century today and haven’t been for years (thank you Peggy!), and (ii) there are institutions in Norilsk, institutions who bought into WTG, institutions who will support Max, I believe, to build a larger gold company.
What it comes down to is I’m not looking to squeeze out the last penny in a deal here, I also do NOT like the optics of the deal with WTG, but I do believe it’s our best way to create shareholder value for us Century shareholders AND that absent a deal we will be worse off. Isn’t this about building critical mass through organic growth and M&A? I’m also frustrated that the organic growth hasn’t been fast enough, but I don’t believe this is a result of a larger plan.
Interested to hear your thoughts and I am trying to stay open-minded. Guys, no need to suggest that I’m a pawn for anyone… you can of course do so, but the truth is that I’m merely a ~1% shareholder of Century and I own no WTG.
ps: the earlier comment about that awful wireless investment was just to illustrate that I’m not always opposed to shareholder activism – I’m just trying to be pragmatic about it.
Hi dave peter
Listen tro the CC audio recording again. The words spoken were "..3 of the top 6 gold producing countries..Canada, Peru, Russia...China, Australia, Africa..."
Tks for alerting me to the error made.
I also do NOT like the optics of the deal with WTG, but I do believe it’s our best way to create shareholder value for us Century shareholders AND that absent a deal we will be worse off.
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Well Peggy Sue, 401 people have voted on the poll and you along with 8 other "yes" votes are comfortable with things "AS IS".
Not sure who the other 8 are...perhaps:
1. Frank Scola
2. Daniel Major
3. Adrian McNutt
4. William Sheridan
5. Richard Meschke
6. Hugh Blakely
7. William Lamarque
8. Ricardo Campoy
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