My Rant ....
just read these posts on StockHouse ....
One
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in recent PR, "where gold production of 90,000 ounces is forecast for 2006 at a cash cost of US$325 to US$350 an ounce."
The co is saying 325-350. this is rising costs from past predictions of 325. NOT GOOD.
And the PR people are still no delivering on their promise of a conference call announcement by the end of *last* week.
this is the stuff that makes people nervous, like big boys, who we all want as buyers, but are too afraid as they see things like promises undelivered...
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Two
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Exactly Calif, I feel a bit like they slipped in the price range increase... and thats not too kosher.
totally agree that its not a big deal, and probably the dollar did it, hell TAD, even if CF was $250 per oz, that would be fine .. but the PR/mgmt is not showing itself in a great light.
I liked your production numbers reply to my wkend post, btw.
"The hard part is going to be executing their plan in a timely fashion. That's what will be the truly important issue."
This is a co. that issued 3 correction pr's in the last year... quoted a debt buyback *with a closing date* and didnt do it, or report it incomplete until after.. has open promise of conf call right now with no action..
These are concerns.
NOT big ones, but still.
btw, i have shares, and think i'll get the Scion warrant price of 2.25 by the end of this year - BUT you still have to watch your money with critical thoughts -> just to be safe
PC, agreed that mgmt buying is good sign - again why did it take so long after the closing announcement??
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Actually, CMM has changed course ALOT more than above.
(a) The Initial game plan was to bring up S-Mine alone, glean
Cash Flow, and then bring up L-Mine in 2007 or later ...
Then there was a change ....
(b) The actual versus guessed at projected price
of Gold changed. It went higher.
Peggy thru away the OLD PLAN.
(c) In Mar SHE spelled out a 3 point plan to
bring the L-mine on stream by Yr-End 2006.
(c1) And committed to pay down debt.
Then there was a change ....
(d) At and around the same time (I don't know
the specifics) somebody blinked and the Peru deal
was there on the table - for real. Shit or get
off the pot.
Peggy threw away the OLD PLAN.
(e) CMM (Peggy) did the Peru deal. And I gotta guess that
Peggy put CMM's Finance guy thru mucho What-If scenarios
in terms of foward looking Cash Flow EDIT:requirements
.....
Then there was a change ....
(f) CMM announced a private placement. Don't know if
it (was/is) the reason for (e) or not.
But I think it was ....
(g) The PP was a work of art. Scion is in this for
the long haul so their shares are years away from
hitting the deck ....
Then there was a change ....
(h) Some mutual funds had to or wanted to sell approx
3.4 million shares - right now. So a tedious time
warp developed for a blip period of time. (I still think
its going on). And it just does not matter ....
Then there was a change ....
(i) Cost of goods sold .... i.e. cash costs of production
rose versus a previous announcement that CMM was trying
to reduce them .... and it was a 1 liner in news release
without any *color* as to the why's and wherefore's.
I don't know the cost mix with respect to cash costs
of production. i.e. materials and labor and overhead
costs .... but *certainly* - to a reasonable person -
materials costs are gonna go north - just like gold
has gone north ... and for all I know labor costs
have changed and rose higher than the original budget ...
However, the *point* is .... CMM did issue a press release
and did indicate a NEW RANGE for cash costs of production.
Albeit - no color.
In closing .....
Peggy Kent and the CMM mgt. team have changed plans
on a dime (many times) in the last 3 months
.... to take advantage of opportunities that arose ...
because they *enabled* those opportunities in the
first place ....
To insinuate (whatever) versus the *actual performance*
of the last 3 months - how did Shakespear say it? -
is to protest too much.
regards,
John McCarthy |
