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Gold/Mining/Energy : Canmine resources

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To: Ralph Kern who started this subject	9/9/2000 10:39:45 PM
From: Marshhawk	of 2769

Centaur still a dog; giving even Anaconda second thoughts Anaconda extends diligence period on Centaur Source: AAP\|Published: Sunday September 10, 11:40 AM Anaconda Nickel revealed yesterday it had extended its period of due diligence on Joseph Gutnick's former flagship miner Centaur Mining and Exploration. The revelation coincided with the release of the nickel producer's $39.3 million full year net loss. This was despite a 42 per cent increase in sales revenue to $165.1 million. There were few people willing to comment on the result yesterday, but analysts and industry observers linked Anaconda's caution to the loss. The appointments of Anaconda's chief executive Andrew Forrest, chief financial officer Michael Masterman and group general manager Stephen Denn is accompanied the loss announcement. It also listed Anaconda's company secretary Malcolm James as Centaur's joint company secretary with Peter Lee. But it is understood the new appointments will not be go ahead if Anaconda's due diligence on Centaur does not stack up. There was speculation yesterday the full year financial result had given Anaconda some reason for concern. Another major issue was cash operating costs at the Cawse laterite nickel project, which is Centaur 's key asset and the chief interest of Anaconda. Costs for the year were recorded as $US2.09 a pound of nickel after cobalt credits, falling to $US1.42/lb in August. The August cost remains well above the estimates provided by Centaur in the feasibility stage of the project. Cawse is the best performing of three laterite nickel projects, although all have failed to live up to the expectations provided by their operating companies. Anaconda moved to take control of Centa ur two weeks ago by agreeing to purchase Mr Gutnick's 12 per cent interest in the company and another 3 per cent for $1.35 a share. The price was considered low at the time, which was reflected in an immediate jump in the stock to $1.75. It is starting to look expensive, with Centaur shares falling back to within a few cents of the price offered. The stock dropped a further 2 to $1.36 yesterday. The company's $39.3 million net loss included a $6.4 million abnormal charge a nd falls slightly short of 1999's net loss of $87.1 million, which succumbed to $50.3 million worth of writedowns on Centaur's gold assets. Anaconda is widely anticipated to sell off the gold operations if they decide to proceed to board co ntrol.

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