My initial thoughts, are, the ramp up is going fairly well. Some issues, but, all are clearly being dealt with. The grades look good, which is somewhat surprising, as I thought they would have been using low grade ore initially. Lots of ore on the ROM pad (600k). Exploration, hmm... I guess its still early days.
Cash position, perhaps a little on the light side, but... only because they just secured a project very cheaply.
As I read it, they have about $22m in liquidity, and expect costs of approx $40m for the quarter (production, etc etc). So.... that is not a huge amount wiggle room. Yes, they sold some gold early July, so, perhaps $25m liquidity. To continue with approx $10m as a buffer, CMM are going to need to sell (not produce, more than that) around 11,700 ounces for the Sept Q. That sounds achievable, though I think there is still risk of a small raising. Not that I think CMM cannot get one done quickly. I am sort of surprised they did not just raise the $20m to pay for the aquisition.
Anyway, still happy to hold, but, I would not be surprised if we saw a little weakness in the near term.
CMM Price at posting:
$2.14 Sentiment: Hold Disclosure: Held
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