No value given for almost 6M 43-101 ounces in the ground and no value for having one of the largest milling operations (and one of the very few milling operations) in the entire gold mining region (and the only mill in the region with significant spare capacity (both from 2,000 to 3,000 tpd, and the abilities to scale back up to 5,000 tpd with further midifications) - in a region where there seems to be limitless small exploration companies, with gold deposits, that will be looking to hook up with a local mill operation to process their ore in the near-future and for many years into the future (either via JV or M&A, custom milling or otherwise)).

Century needs to do a far better job in selling itself. It actually has something of significant value to sell, unlike the majority of the companies in the space, in my opinion.


Century`s financial stats for the first 9 months of 2009 (YE numbers should be out around April 15th):

1) 2009 (first 9 months) Earnings from Mine Operations = $6,269,460

2) 2009 (first 9 months) Cash Flow from Operations = $7,716,484

3) 2009 (first 9 months) Net Profit for Century overall = $5,439,938


Century realized record gold production at San Juan in Q4. Also, the gold price was a historical record high in Q4. Century`s full year numbers will be higher than those 9 month numbers.

Let`s say that Cash Flow from Operations come in at around $9.0M for full year 2009.

We know that San Juan`s production target is around 20,000 ounces in 2010, which is about 3,000 ounces greater than 2009. Let`s say that it (plus the US$1,100+ gold price for the entire year) pushes the 2010 cash flow up to $11M (just San Juan, without Lamaque).

$11,000,000 / 340,000,000 outstanding Century shares = $.032 CF per share

$.032 * 15 CF to share price ratio in a US$1,150 gold price bull market = $.485 share price

Today`s Century share price closed at $.47

As such, WE (SHAREHOLDERS) HAVE RECEIVED ZERO VALUE FOR OUR LAMAQUE ASSET THUS FAR.


By the way, San Juan has been hugely successful relative to other small gold focused producers. San Juan has carried costs for the entire Century business. Very few small producers in the space even show a profit.

Below is a comparative analysis (of companies with small producing gold mines) I had orginally posted back in February. Look especially at the cash cost per oz of these small operations.

The results below reflect Q3`09 results .


San Juan Gold Mine (Century Mining):

*Operating country - Peru
*Operating earnings - $2,334,568
*Net income (Net loss), company overall - $2,689,470
*Gold production or sale (ounces) - 4,561
*Total cash cost per oz - US$486


1) Dynacor Gold Mines:

*Operating country - Peru
*Operating earnings (Loss) - $(329,215)
*Net income (Net loss), company overall - $(1,529,000)
*Gold production or sale (ounces) - 3,321
*Total cash cost per oz - US$877


2) Sierra Minerals:

*Operating country - Mexico
*Operating earnings - $806,445
*Net income (Net loss), company overall - $30,751
*Gold production or sale (ounces) - 5,162
*Total cash cost per oz - US$753


3) Olympus Pacific:

*Operating country - Vietnam
*Operating earnings (Loss) - $330,247
*Net income (Net loss), company overall - $(2,175,166)
*Gold production or sale (ounces) - 4,053
*Total cash cost per oz - n/a


4) Alexis Minerals:

*Operating country - Canada (Quebec)
*Operating earnings - $352,619
*Net income (Net loss), company overall - $(1,714,536)
*Gold production or sale (ounces) - 7,883
*Total cash cost per oz - US$888


5) Avnel Gold:

*Operating country - Mali
*Operating earnings - $415,000
*Net income (Net loss), company overall - $(1,420,000)
*Gold production or sale (ounces) - 4,314
*Total cash cost per oz - US$802


6) Caledonia Mining:

*Operating country - Zimbabwe
*Operating earnings - $1,802,000
*Net income (Net loss), company overall - $846,000
*Gold production or sale (ounces) - 4,117
*Total cash cost per oz - n/a


7) Starcore International:

*Operating country - Mexico
*Operating earnings - $1,687,000
*Net income (Net loss), company overall - $562,000
*Gold production or sale (ounces) - 5,400 (gold equivalent)
*Total cash cost per oz - US$449