Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: baystock who wrote (494)	6/29/2008 11:16:37 PM
From: hubris33	Respond to of 545

Hi baystock, I've seen your posts over several years and have come to respect your picks as a trader. As such, I find your reply uncharacteristic and confounding. Perhaps you were just pulling my leg? I am not interested in commencing a pizzing contest and perhaps we should agree to disagree, so let me just summarize with this: 1. There are not 5 MM oz of mineable gold at Lamaque, only 1.1 MM oz. RESERVES versus Resources versus "inferred." 2. Also priced into the CMM shares is $23.5 MM of current liabilities, unpaid loan to IQ for $12MM for Lamaque, a working capital deficit of ~$13MM, cash CapEx needs of ~$70MM for Lamaque upgrades, $10MM (???) of CapEx for San Juan upgrades and negative cash flow through at least the end of the year - in short CMM is a "technically bankrupt" company. 3. Placer Dome and Teck Cominco already mined the "easy" and profitable ore from Lamaque before they abandoned the properties for more lucrative plays. It is the marginal ounces, the difficult to mine ounces, that remain in place. 4. While I can see POG spiking to the $2,000/oz level in a frenzy at some point, I am not certain it makes sense to assume Gold will continue to sell at $2,000/oz for years to come in the future. I'm willing to wait until CMM gets stabilized and proves it isn't going bankrupt before I'll drop any money into shares even at this "cheap" level. Good luck! H3