Welcome to the Equinox Gold Hub On AGORACOM

Free
Message: Re: CMM Blog on BNN - Victor Goncalves TOP pick is CMM - Part II

Just to add from a previous post, repost:

TGR: Do you have any companies in mind that you see presentingthese kinds of opportunities?

VG:Oh, absolutely. Thefirst one is a no-brainer and I love no-brainerstories. No-brainer stories aregreat because you don't have to worryabout them. Century Mining Corp.(TSX.V:CMM) is one of those no-brainerstories. Century Mining got really beat upfor quite a while. Then itturned around quite nicely for multiple reasons. Onereason is aRussian group bought 45% of the company to get the companyintoproduction. They got the money they needed to put their Lamaque Mineintoproduction. It's not in production yet, but they're working onthat right now.What's interesting is the numbers. Between theirPeruvian operation and theirQuebec operation, which is the LamaqueMine, the company should be producingbetween 140,000 and 150,000ounces of gold a year. All-in costs should be around$460 an ounce. Soyou're looking at a company that could be making in the orderof $70million or $80 million a year before taxes.You factor a 10 or 12multipleinto that, which is quite low, and you could be looking at astock price that is$2, $2.50 just for fair valuation. The share priceis currently at$.60. It's moved up a little bit in the past couple ofweeks-month, but it'sstill very cheap. That's a no-brainer.

http://www.marketoracle.co.uk/Article18904.html
1
May 31, 2010 11:36AM
Share
New Message
Please login to post a reply