Re: INTERESTING?
in response to
by
posted on
Feb 07, 2011 04:16PM
I do not know how to read all those insider reports. But I do not recall 25 million shares showing up on CMM's volume either. Plus, there is no stated price. What I do know is that the volume for CMM is above average today ( 1.27 milion compared to average 768,000 )and the price has slowly been climbing. I listened to the conference call today, and although I share some of your frustration about CMM badly missing their targets in 2010, it made sense that they will be close to 2000 TPD @ approximately 3.75 g/t by year end. Even if they miss their targets on the timing, San Juan is already cash flow positive. Lamaque should be cash flow positive as soon as they get Bedard Dyke going, which should be right about now. They just have to complete the second access point for that to occur. As long as they are not bleeding money ( like they were last year) it is not a serious problem if they do not hit all their targets in a timely manner. Next year, they should be producing 80,000 oz at Lamaque and at least 20,000 oz in San Juan. They will make money at that production rate and at today's prices ( somewhere in the 8-12c range. I will be happy if I have to wait close to a year for a double in price.
Bob