Q2 Cash Position for Century Mining
I had a quick conversation with Tom today. I needed a couple things clarified regarding some numbers that came out of the conference call yesterday. One thing in particular did not completely add up, regarding committed ounces.
During the C.C.,... Peggy stated that the company was now fully exposed to spot prices. According to the information received at the AGM, the company still had a commitment to 14,000 ounces on call options averaging US$550, but according to the Q2 results there were 8050 ounces still committed to forward sales contracts for delivery at $498 as of March 31 2006. I had been previously told that some calls had been written a week or two before the AGM. In the past two weeks, since the AGM the company has either bought back or delivered into, all remaining contractual committments, so, yes, we are now fully exposed to spot. Some of the last call options had been written +$700 too.
According to an answer regarding a question posed to any further dilution, Peggy noted that as of the current status of the company's plans, they have no further need for cash until well into 2008. unless of course they have another acquisition(s) in mind.
And then there's also those 10 million warrants exercisable at $2.00 which would also throw another $20 million into the coffers .... that is "IF" CMM's share price can get high enough to have those warrants in the money ?!?!?
Projected Cash Position for Century at end of Q2.
$2,883,663 Cash and Cash Equivalent March 31 2006
$1,422,749 Cash from exercised warrants after to March 31 2006
$35,100 .... Cash from exercised options after to March 31 2006
$25,176,800 Cash from Financing Closed on April 27 2006
$29,518,312 Total Cash available during Q2 2006
(Not including Mine operating cash flow from Sigma in Q2
Commitments known during Q2
$5,100,000 Cash component of San Juan Gold Mine acquisition
$2,000,000 Cash payment to SGF for royalty buyback agreement
$881,250 Cash in escrow for payment to unsecured credit holders
$846,500 Cash payment for first installment on IQ long Term debt
$600,000 Cash for first phase of Lamaque underground development
$9,427,750 Total cash commitments known for Q2
$29,518,312 - $9,427,750 = $20,030,562 Cash at end of Q2 plus Sigma open pit operations cash flow.
So we're left with $20 million for the remainder of the year, and we know of a further $5 million in development costs for underground at Lamaque in 2006, and $2 million for phase 1 San Juan Gold Mine upgrades for this year. Another $1.75 million in upfront costs on the lease agreement for the 4 little laddies ariving at Val D'or this summer, September payments for unsecured credit holders ($880,000) and payment for IQ debt ($423,250)... leaves about $10 million in the till PLUS whatever cash flow that comes out of the Sigma open pit operations over the three remaining quarters of this year,... and whatever comes out of the 60% share of the San Juan Gold Mine production.
I'd say they've got enough cash going forward for a little exploration campaign on Golden Champune, and a little bit of work on Erika ? |
