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From: John McCarthy	4/20/2006 9:19:46 PM
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production05 post For CMM, here is what I see: * Current gold price of $613 US and $300 US cash cost - $313 US or 51% cash flow contribution per ounce of gold produced. * 45% cash flow contribution with a $550 US gold price, 40% with $500 and 33% with $450. * Production in place (or in development) of 120,000 ounces in 2006 and 248,000 in 2007. * A cash operating cost that will most likely be below $300 per ounce once the new operations are online (or have been expanded). * Cash flow run rate of $33M at 120K production (at $550 gold price) in 2006 - $42M at the current gold price of $613. In 2007, cash flow run rate of $69M at 248K production (at $550 gold price) - $86M at the current gold price of $613. * On both a price-to-cash flow basis and price-to-earnings basis our fair market value share price comes out tremendously higher than today’s market price. * Our Long-Term Debt position is very low relative to cash flow that is generated by the company – debt free status is expected to be achieved once the share price increases substantially (to maximize bang for the buck). Either way, no balance sheet risk for CMM as there is sufficient cash currently on hand if debt became the top priority. * Major growth potential – high possibility of around 20M ounces of gold in Peru (60% belonging to CMM) waiting to be classified as 43-101 compliant, with potential for major production capabilities. * A management team with substantial finance, insolvency and restructuring skills. As such, the company is well positioned to create shareholder value in a period where expansion is extremely expensive to realize cost effectively due to the high gold environment. Good luck, Production05 stockhouse.ca

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