Century Mining Corporation Message Board

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Gold/Mining/Energy : Century Mining Corporation

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To: pstad60 who wrote (71)	5/10/2006 9:54:18 PM
From: John McCarthy	of 545

Hi Tad ... in a nutshell .... >>>>>>>>>>>>>>>>>>>> So lets get a base line on cash costs in Canadian dollars. Over on the Stockhouse forum I suggested we keep an eye on Canadian prices, as opposed to US dollar prices due to the fluctuations in the exchange rate, a long time ago. A company issues cash cost guidance for US$325/oz. Operations are all in Canada. USD/CDN exchange rate was around $1.18 or ~$0.845 . US$325 x $1.18 = CDN$383.50 So $383 cash costs in Canadian Dollars, but then the USD tanks,... or Canadian Dollar rises,.... now up to $1.10 or ~$0.9075 CDN$383.50 x $0.91 = US$348.98 Pretty basic math ? >>>>>>>>>>>>>>>>>>>> great stuff ..... (I really missed the ball on this one) more .... >>>>>>>>>>>>>>>>>>>> As for the retraction of the long tern debt settlement. We've been through that already, the original deal was set for $8 million cash and 5 million shares,..... when the share price was around $0.60ish. (LT debt is about $14.5 million and then take into consideration the 20% discount which would bring the pay out cost to around $11.8 million) Share price ran up very quickly and according to my questioning of IR regarding this issue, the deal wasn't finalized and was cancelled. The company has until the end of December 2006 to pay off the entire debt and accrued interest if they want to take advantage of the 20% discount agreed to in the initial purchase agreement. Wouldn't it be much better to pay off the long term debt with terms such as a $2.50 share price and issue say 3 million shares and pay $4 million cash ? Less dilutive and less cash outlay .... yes ? no ? >>>>>>>>>>>>>>>>>>>> sure ... I knew this from a prior post .... but I'm an OLD FART and had completely forgotten about it .... so thanks a second time ... regards, John McCarthy

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