Methinks it's pretty much an okay day so far. When you disregard how the tape got painted on May 11th (up several cents in the last 15 minutes), CMM is still just about where it was pre-CTO, not clobbered at all. The 50s transactions at the start of the day were typical - some barefoot pilgrim setting a market sell for the open, and having nothing to sell into but stink bids.

Next Monday, I guess, we get their Q1 2010 financials... when they show lower debt and a positive balance sheet, with maybe some positive guidance for Q2 re: Lamaque and a bit of propaganda (re: development of Bedard, equipment at San Juan, any more 100g/t glory-holes available for a news release), that should be what it takes to get us up over 0.80.

For the time being, high 60's is perfectly acceptable. I am only worried about seeing hints of distribution. Maybe the pros here can keep their eyes open for that? Because this market is going to drive a lot of people and institutions to sell everything showing profit and move into cash heavily: Spanish banks failing, Euro contagion, Israel beating the war drums, and now threat of war in Korea and the complications that that causes re: China.

A newsletter writer I follow pointed out this weekend that when these markets get full of fear, irrational selling sets in. For example, at the height of the last crash there were producing miners selling at 2x FCF or less, while explorecos had market caps that were even less than their cash-on-hand.

Thankfully Century will survive the coming havoc, assuming positive cash flow, fulfilling development of Lamaque, and gold staying above $1150. It'll get to $1.20 in 12 months max, but we can't predict the path it'll take to get there. It could easily get driven back down to 30-35 cents if the entire market decides to rush for the exits.

No guts no glory!