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Gold/Mining/Energy : Century Mining Corporation -- Ignore unavailable to you. Want to Upgrade?

To: FreedomForAll who wrote (145)	6/26/2006 9:44:39 AM
From: John McCarthy	Respond to of 545

freedom in effect it is a lowering of production. regards, John EDIT: Note:I have MANGLED Tads numbers into the following format: The Market price of $600 is my own but the production oz MIX is Tad's Total Gold Production Oz 21,500 ------------------- Market Price Gold ------------------- POG - USA $ 600 Oz Sold 13,450 Revenue USA $ 8,070,000 Conv Rate 1.1000 POG - Canadian $ 660 Oz Sold 13,450 Canadian Revenue 8,877,000 ------------------- Call Option Gold ------------------- POG - USA $ 498 Oz Sold 8,050 Revenue USA $ 4,008,900 Conv Rate 1.1000 POG - Canadian $ 548 Oz Sold 8,050 Canadian Revenue 4,409,790 USA Revenue 12,078,900 Oz Sold 21,500 Avg Price per Oz 562 Canadian Dollars Revenue 13,286,790 Other Rev 100,000 Total Revenue 13,386,790 John

To: FreedomForAll who wrote (145)	6/26/2006 1:50:13 PM
From: pstad60	Respond to of 545

Freedom: The 14,000oz were the total amount which was still committed as of the May 19 AGM with an average price of US$550/oz. I don't know if some of the 8050 ounces that remained as of the end of Q1 were included in that 14,000 ounces that remained or not. We'll have to wait until Q2 results come out. Read over the post again,... you'll see there are two streams of thought in there, and I can see where you might be getting confused regarding the 14,000 oz of gold which were committed to contracts and the 21,500 oz. of projected Q2 production. ------------------------------------------------------ As noted in the Q1 financial statement there were 8050 ounces committed at US$498. Let’s assume these ounces were delivered into the contract(s) in Q2 8050 oz x US$498 = US$4,088,900 That leaves us with 13,450 ounces based on the lower 21,500 oz projection. We were informed at the AGM on May 19, that the company had 14,000 ounces committed at an average of US$550 per ounce. Those committments were subsequently eliminated within the next two weeks as stated in the conference call on May 31. I was informed by Tom in a subsequent conversation that some of those committments were delivered into the contracts and the rest were bought back. No breakdown was given and I doubt he would have been given specific information anyway. Let's say the company was fully exposed to spot gold for the last 6 weeks of Q2, with average weekly production of about 1654 oz. (21,500 oz / 13 weeks) 1654 oz x 6 = 9924 oz x US$605/oz average for last 6 weeks of Q2 = US$6,004,020 This would leave us with about 21,500 - (8,050 + 9924) = 3,526 ounces left with an unknown price received, so let’s assume the average US$550 committment price stated at the AGM on May 19? This figure could be higher, could be lower depending on the strike prices on the remaining contracts if the gold was in fact delivered into them. 3526 X US$550 = US$1,939,300 Totalling it up .... US$4,088,900 US$6,004,020 US$1,939,300 _____________ US$12,032,220 x $1.11 exchange rate (approx. average for Q2) _____________ CD$13,235,442 Revenue from operations That works out to an average realized price of gold for Q2 of US$559 per ounce. Pretty close to your estimate of $560. -------------------------------------------------------- These are just my rough guesses, we'll see how the company actually made out in another month or so, as I was told that the company intends on having Q2 results out by end of July, early August at the latest.