First, I really liked the conf call. I found everyone to be speaking very candidly of the delays at Lamaque and how they have made changes, important changes to previous management decisions to rectify the situation. I do not think the company would ever admit this but I think that some decisions by the previous CEO were not the best and were the main reason we got ourselves in the trouble we are in. The new management has hired experienced key personel to run the mine including contract workers to speed things up at the BD and the NW. This will fast tract the development of those areas and help us ramp up our t/d and since the grade is better in those areas, it should also help our g/t which will translate in more gold ounces.

I like how they maintained their guidance and how they explained their plan to meet that guidance. They really seem to have a handle on where they are going and and how they will get there. The market, because of CMM's history will probably take a wait and see approach here which means there may not be huge rush to buy in but I suspect many of the serious investors who listened to the presentation and analyze the company properly will accumulate at these prices which means our downside from here should be quite limited for the time being. The price of gold is the only risk short term IMO as the bad news is out already. If they fail to meet their targets for this quarter and have more start up delays than we are in big trouble however, I believe we are in the best position we have ever been right now and the upside is tremendous.

Their guidance for 2011 is for 80k ounces from Lamaque and 24k ounces from SJ for a total of 104k ounces at an average cash cost of below $550. That would give us revenues after mining costs of $83M based on gold averaging $1350 for 2011. If they deliver as promised, we will be in great shape and will be looking at ROI of well over 100% IMO.

I highly recommend taking the time to listen to the conference call, it will give you a great sense of where we are now and where we are heading.

Glorieux