CMM.V
The cheapest producer out there bar none is Century mining (CMM.V). And believe it or not it is cheaper than many of the exploration companies out there.
It is producing around 100K oz per year and will have a good growth profile going forward because the management has the intentions and the track record of aggressively pursuing growth.
This company is run by the former Royal Oak management and they are successfully turning around the Sigma mine in Quebec and this operation will provide the base for launching this company into the dwindling ranks of intermediate producers and hence the stock price into the stratosphere.
Here is a nice post from Stockhouse that summarizes things:
stockhouse.ca
What we have seen in the past 4 reported months for which we have data is that head grades ( gms/ton ) have been increasing significantly, as mining practises become more refined and calibrated to the geological model......
...1.45 gms/ton in October
...1.96 " " " " " November
...1.91 " " " " " December
...2.28 " " " " January/06
All of these grades, with the exception of Oct/05, have been higher than the budgeted grade of 1.8 g/t for this year.
This is a reflection of the modifications that management have made to mining and grade control practices to minimize ore dilution.
The fact that average grades for the past 3 reported months have been above the forecast 2006 level of 1.8 gms/ton is very encouraging, and indicates that dilution mitigation practises have been sustainably effective.
In fact, January's grade permitted production to be 8400 oz ( 100,000 oz annually )..above the monthly target of 7570 oz /month.. at a cash cost of $300....below the budget of $326 /0z.
From information provided by management at PDAC, we now know that February was also on target and the mitigation measures continue to refine mining/extratction strategies......which means that March will also be on target.
That would suggest that we should at least meet the forecast cash costs of $326 /oz in Q1 , with a good possibility that the average grade could be 10 + % higher..and cash costs at or below the $300 /oz level..
That is, Q1 quarterly production should be of the order of 24,000-25,000 oz at a cash cost off no more than 326 /oz .
Gold has averaged about $550 US this quarter, implying quarterly gross sales of about $15.5 million cdn, with a cash flow of about $6.5 million.
Those numbers, along with the fact that CMM will be debt free by the end of March, should provide a tremendous boost to investor's confidence that Peggy has got the corect mining model, and that CMM has the fundamentals to move to its fair value of its peers.......which is well above the $3.50 level..
Message 22251117
Currently long 23,000 shares of CMM.V
AZK/MNG/CMM.V/IPT.V/MUG.V |
