onsdagen den 21:e september 2011

CMC Metals

Mitt uppe i alltihopa kommer CMC Metals med release. Lite lägre brutet (1700 ton istället för 2500 ton) pga väder. Bulkprovet kommer att skeppas och säljas i omgångar under resten av året.

1700 ton x 2500 g/t / 31.1 = 136 000 oz

136 000 x 0.8 x 40 = 4.3 MUSD

Lägg sedan till detta kassaflödet från Bishop Mill. De har malm med halter på 1 oz/ton guld (!) och kommer att kunna producera 100 000 oz över 3 år varav de får behålla hälften (de har JV med annat bolag).

Dvs ca 15 000 oz guld per år till CMC. De tror själva att detta kommer ge 5 ggr så stor omsättning som bulkproven från Silver Hart. Låt oss säga att det högt räknat kostar 1000 USD/oz totalt att producera det, det ger vid dagens guldpriser ca 12 MUSD netto. Kombinerat med Silver Hart har vi då ~15 MUSD netto (!).


MCAP 18 MCAD.

Fortfarande mycket mycket bra.

"Vancouver, B.C.: CMC Metals Ltd. (the "Company") is pleased to announce that the 2011 bulk sample ore will be prepared for shipment by the end of this week. Based on preliminary sampling and grade control assays, 300 tonnes of the bulk sample can be direct shipped immediately. The Company is finalizing a test shipment contract that will provide the foundation for further shipments over the next few months. It is proposed that the entire bulk sample will be prepared for shipping and contracted for sale by year end. Estimated final tonnage that was removed from the site was 1700 tonnes up from 130 tonnes which was removed last year. Unfortunately weather conditions dictated the work stoppage and the removal of the equipment and bulk sample before meeting the 2500 tonne goal. Final tonnage will be determined during the shipping process.

Furthermore, the Company wishes to announce that it has granted 250,000 common shares pursuant to an incentive stock option under the Company's Rolling Stock Option Plan, which Plan received shareholder approval at its last Annual General Meeting held June 23, 2011. The options have been granted for a one year period expiring October 1, 2012 at the exercise price of $0.33 per share, subject to TSX Venture Exchange approval.

In compliance with NI 43-101, Don Wedman, P.Eng., President and Chief Executive Officer of the Company, is the Qualified Person who prepared or supervised the preparation of the technical information presented in this news release."

20 kommentarer:

  1. Hej ! Tror du att kursen kommer att påverkas av bulkprovet ? 1700 ton. i stället för 2500.

    SvaraRadera
  2. Vet inte om kursen påverkas.

    Det är fortfarande mycket mycket bra jämfört med MCAP.

    SvaraRadera
  3. Visst är det otroligt bra ändå Scoris!

    Är halten 2500g/ton bara en uppskattning från dig eller har jag missat något?

    Kan du förklara vad "Rolling stock option plan" innebär? Hänger inte riktigt med i de engelska facktermerna.

    Kursen rasade ner lite i alla fall, så ett fint köpläge har inträffat lagom till avlöning!

    Har du räknat något på Coral Gold?


    Ha en trevlig kväll mvh rodeorm

    SvaraRadera
  4. Tjena Ormen,

    2500 gpt bygger på det de räknar med själva när jag haft kontakt med dem men det kan nog bli lite högre.

    Det där är nog bara att ledningen får optioner då o då. I små råvarujuniorer är det typ lönen ofta.

    Har ej räknat på Coral. Finns inte så mycket att räkna på där innan produktionsplaner blivit kända.

    Mvh

    SvaraRadera
  5. Tack för snabbt svar Scoris!

    mvh rodeorm

    SvaraRadera
  6. Hej
    tonnen blev 1700 istället för beräknat 2500. det är 32 procent mindre, beror det bara vädret som dom säger eller är maskinerna trasiga. det bliv lite bättre än förra året, men vad har dom gjort för att det skulle bli bättre i år än förra året? dom kanske får sparka regnmakaren.
    mvh
    kim

    SvaraRadera
  7. "lite bättre"?

    Förra året var det 170 ton, det är 10 ggr mer i år.

    Gjort bättre? Det vet jag inte, planen förra året var ju inte att bryta mer än så.

    SvaraRadera
  8. oj, läste lite fel, men kan vädret göra 32 procent?
    mvh
    Kim

    SvaraRadera
  9. I liked how you summed things for the future operations of CMC Metals. There is a lot blue sky for the company in Inoyo County, California- something like 300 mine sites. Those gold ounces will be fantastic for CMC.

    SvaraRadera
  10. Hey Scoris,

    Thank you for your good analysis work. Can you help me with two questions about CMC.

    Q1: Why can't I find the results of bulk sample 1 in CMC's Q3 report (cash flow statement / balance sheet / income statement - no lines referring to these proceeds)?

    Q2: How did you get to the bishop mill annual production of about 30 000 oz? For me this seems fairly optimistic. I've used the following figures in my own calculations:

    Capacity: 100 t/day (assuming they'll be able to reach that)

    Annual days: 200 (assuming some production issues)

    Grades: CMC's estimates of 0.5 - 1.0 oz/ton grades were based on two rounds totaling only 50 tons (~0.25% of annual mill capacity). These grades seem awfully high to be realized in longer term. I'm using the lower end of the fork in my calculations, but my gut says I probably should be using ~0.2 oz/ton, which would still be really good (6,22 g/ton).

    Cash cost: $1000/oz seems realistic giving a $650 margin with today's gold price.

    Math:
    100 (tons/day)
    * 200 (working days)
    * 0.5 (oz/ton)
    ------------------
    10 000 oz annual production
    * 650 $/oz
    * 50% (CMC's cut)
    ------------------
    $ 3 250 000

    And this would still be the positive case for me since I'm using a really high grade here.

    SvaraRadera
  11. Hello Samu,

    1) I'm not sure, email gord and ask. It should be in one of the reports.

    2) It's their own calculation. CMC says they have 100 000 oz that will be milled over 3 years, that will give ~30 000 per year of which CMC can keep half because of the JV.

    Best regards

    SvaraRadera
  12. Hej Scoris,

    It's been almost a month since my original comment to CMC, and I wanted to share my findings here since I've received a lot of useful information from this blog.

    Unfortunately I still haven't received any good answer from CMC / Mr Gord Zelko regarding to the accounting issue (Q1 in my previous comment). According to CMC's June 30 MDA the company has received proceeds of $445 135 from bulk sample 1 in two batches (on Jan 24 and Apr 25). This amount should show up on the 9 month figures of the Q3 report:

    http://www.cmcmetals.ca/i/pdf/2011-Q3-FS.pdf

    As far as I can see, there are no corresponding lines recorded here on the:

    a) Statement of operations (page 3), which records only expenses for the period.

    b) Cash flow statement (page 4). Normally the proceeds would be in the start as part of "Net loss for the period", but as said in previous point, they are not in this case. Nor are there other lines for the proceeds (the only line big enough is "proceeds from issuance of common shares", which has nothing to do with bulk sample proceeds).

    c) Balance sheet (page 2). The increase in "Cash" equals to "Change in cash" recorded in the cash flow statement (with as already mentioned has no references to bulk sample proceeds)

    The report mentions the bulk sample results on other places e.g. property expenditures (page 6). Great, but I want to see the figures in BS / CFS / SoO also. When a company receives cash from it's operations, it should report corresponding cash flows on CFS and an increase of "cash" in the BS.

    I have made several contact attempts with mr Zelko, and received today (after little over three weeks and several notifications from my part) an answer from him. Unfortunately he seems to be unable to give answer to this fairly simple question. I have once again repeated my question to him, but am losing faith for getting a proper answer.

    If anyone else (scoris or a reader) understands the accounting principles of CMC better than myself, I would really like to know.

    A yellow flag from my part to CMC investors.

    SvaraRadera
  13. Samu,

    I agree with you that it should be there in cash flow terms. I'm pretty sure it's nothing fishy since they have it there on page 6, but I'n not sure of the accounting rules here... I can send an email to Gord as well.

    Regards

    SvaraRadera
  14. Samu,

    I got this from Gord:

    "Tell your guy I’m on it. What I did find out is that a bulk sample sale may not be regarded as cash flow from operations and that’s why it’s not in the cash flow statement. I think it’s the way the financials are done. We received it

    I’ll get back asap"

    I will keep you posted.

    SvaraRadera
  15. Samu,

    Here is the answer:

    "Good morning. In response to the request below, CMC is an exploration stage company and is not in the production stage at the current time. In accordance with Canadian GAAP, since there is no operational income, any incidental revenues (ie – sale of the bulk sample) earned in connection with exploration activities are applied as a reduction to capitalized exploration costs. You will notice that in the note for “Property, Plant and Equipment” that there is line item in each quarter subsequent to September 30, 2010 with the heading “Sale of bulk sample” which reduces the carrying value of the Silver Hart Property. This line item is the cash proceeds from the sale. This would not show up on the cash flow as part of net loss or as a separate line item, since it is not a financing activity, but rather it is netted with Property, plant and equipment expenditures for the period."

    Cheers

    SvaraRadera
  16. Got the answer too. So the proceeds of bulk sample 1 are recorded on the cash flow statement as a decrease in "Property, plant and equipment expenditures". The numbers seem to match now.

    Removing my yellow flag from CMC, I was just lacking the proper accounting expertise.

    Thank you for your help in the matter.

    SvaraRadera
  17. Samu,

    No problem. Just glad to get this clarified.

    Hey, can you read Swedish?

    SvaraRadera
  18. Min svensk är mycket dåligt nuförtiden.
    Google translator helps.

    SvaraRadera
  19. Ok, tänkte om du ville ha min senaste rekomendation som jag skickar ut nu i helgen. Den är dock bara skriven på svenska.

    I så fall, skicka mig ett mail till scoris-blog@hotmail.com så lägger jag till dig i listan.

    Mvh

    SvaraRadera


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