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Message: Outlook

Looking at CMMs last corporate outlook, I see great things ahead. In the last year or so, despite some dissention in the corporate ranks, there has been quite a bit of building and improving their operations. Their mining costs for the three months ending June was $702 per oz compared to $442 in the first six months of 2009 at San Juan. The key is they are planning to increase production at SJ to +25,000 oz and at Lamaque to +80,000 oz. Their longterm costs are projected to be $450 to $500 per oz. They have addressed their lack of qualified operational management and seems like they are getting their corporate management under control. The economies of scale in addition to these improvements should have a huge impact on profitability. The grades and reserves are good and the price of gold is as high as it has ever been. Even with the 345 million share float, we have a lot of appreciation to look forward to. Now is the time to accumulate.

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