CMM post from stockhouse ...
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Lets get 2006 performance confirmed and into the books first, as those indices will set the market cap for 2007.
What we know so far for 2006 is the following..
1...Century Mining Corporation (TSX VENTURE:CMM) announces forecast production of approximately 90,000 ounces of gold at a cash cost of approximately US$325 an ounce in 2006. Average daily mill throughput is budgeted at 4,700 tonnes with an average head grade of 1.8 g/t gold and recovery of 95%.
At the expected average 2006 POG of $550 US, the annual cash flow for 2006 will be between $22 million to $26 million cdn, depending on the average exchange rate of the C $.
At the projected 2006 average c/f multiple of 15, the market cap should be $330 million to $390 million.
2...the evidence of meeting its 2006 targets are as follows...
" The Company is pleased to report that unaudited operating results at the Sigma Mine in January were ahead of budget. The mine produced approximately 8,400 ounces of gold (budget 7,570 ounces) from approximately 121,400 tonnes of ore (budget 137,700 tonnes) at an average head grade of 2.28 g/t gold (budget 1.80 g/t).
The estimated cash cost was approximately US$300 an ounce (budget US$326 an ounce). "
According to PDAC information, CMM production indices were on budget for February.
As for 2007, we do know that the Lameque undergound mine will be in full operation and could add an additional 5000 to 10,000 oz to 2006 production.
Lameque is also stated as expecting to reduce overall cash costs per oz, in addition to increasing total production to as yet undefined levels.
Other unknowns in 2007 will be additional potential
(1)production from Peru,
(2)Carolin,
(3)as well as from several higher grade plugs/vein extensions at Sigma surface identified by drilling in 2004/5......
(4)and , of course any acquisitions of producing properties.
In due course thru 2006, we should see additional info on all of these contributing sources of growth and should then be better able to scope 2007 prospects.
My own calculations suggest a 2007 production in the 150,000 to 200,000 range , excluding any acquisitions.
Thats sufficient guidance for me to stay invested thru 2006, for the additional gains to accrue from 2007 production increases.
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stockhouse.ca
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