Luna Gold is currently trading for $.79 per share. They went through a similar financing process as Century, with prepaid gold sales and heavy share dilution. In my view, their prepaid gold sales deal is much worst than Century’s deal, with a commitment of 17% of current planned LOM production plus 17% of future discoveries (on certain exploration locations).

In addition to the 17% LOM gold payment (debt) commitment, they also have a $15M repayment commitment on normal debt. Century’s gold payment debt is less than 5% of its current P&P Reserves. Also, there is no gold payment commitment on Century’s future Reserves. As well, Century does not have any other secured debts on its Balance Sheet to be repaid.

Luna Gold has no production ounces right now - Century currently produces 18,000 ounces. First gold pour for Luna Gold is expected in Q2’10 (same time period as expectations for Lamaque’s first gold pour).

Luna’s management has managed to deliver $.79 for their shareholders so far. There is nothing in Luna Gold’s fundamentals that I would consider superior to what Century Mining has to offer the market. IMO, if Century’s management does not deliver a share price substantially higher than $.38 in the near-term then I would consider it to be severe under performance by management.

Luna Gold:

Current share price = $.79

Current market cap = $280.5M

Current issued and outstanding shares = 358.8M

Current FD shares = 374.1M

Operating location (s) = Brazil

Expected first gold pour = Q2’10

Current run rate production = 0

2010 production = 47,760 ounces

Production in future years = 57,100 ounces per year

P&P Reserves = 729,000 ounces

Expected cash cost per oz = $422 US (+ 1% royalty)



Century Mining:

Current share price = $.38

Current market cap = $128.2M

Current issued and outstanding shares = 337.5M

Current FD shares = 400M (approx.)

Operating location (s) = Peru and Quebec

Expected first gold pour = Q2’10

Current run rate production = 18,000 (SJ)

2010 production = 65,000 ounces (SJ and Lamaque)

Production in future years = from 95,000 ounces (25K SJ + 70K Lamaque) to 185,000 ounces (35K SJ + 150K Lamaque)

P&P Reserves = 1,300,000 ounces

Expected cash cost per oz = $450 US - $500 US