Carib's Take on Company Direction
posted on
Sep 21, 2011 01:08PM
I've had several emails and PM's asking whether I was planning to sell or hold. I am NOT SELLING.
"Although I consider all opinions expressed and respect the posters making them, I personally am not buying the theory that there will be another RTO in short order by Intergeo or Zaruma Resources. These are base metal companies not gold companies. Polyrus may attempt a takeover at some time in the future if that is what Max wants, but I get the sense that Max wants to build his own mid-tier gold company and Century has the assets to begin that process.
If Max really was interested in driving Century into the ground to get it all for himself at a cheap price, then Century would not be maintaining forecasts for gold production for this year and subsequent years. The company would not be saying that the revised 43-101 numbers are temporary. I am convinced that as soon as the Merger passes its final hurdles, that there will be a dramatic turnaround in production. The MIC claims that Lamaque will produce 46,000 ozs this year which means about 37,000 oz in the last 6 months. Add 10,000 oz from San Juan and we are very nearly a 100,000/oz per year producer, not counting the production from Savkino.
I don't know of any 100,000 oz producers that have a market cap less than $500 million. At a share price of $1.00 for the new WTG, the market cap will be about $300 million. A $1 share price is equivalent to 40-cent CMM shares. I don't see the point in selling my shares for half price."