BLAINE, WA, Nov. 30 /CNW/ - Century Mining Corporation (CMM: TSX-V) is pleased to announce its financial and operating results for the third quarter ended September 30, 2009.
Third Quarter Highlights
- Century recorded operating profit at San Juan and for the Company as
- The Company reduced its working capital deficiency by $9.1 million,
or 38%, compared to December 2008
Third Quarter Results
In the third quarter ended September 30, 2009 the Company reported an operating profit from mining operations, before depreciation, amortization and accretion, of $2,334,568 (2008 - $1,735,994) from gold revenues of $4,532,083 (2008 - $4,300,640). Expenses incurred in the mining operations were $2,197,515 (2008 - $2,564,646). For the quarter ended September 30, 2009 the Company reported net income of $2,689,470 or $0.01 per share, compared to net income of $607,382, or $0.004 per share in the prior period.
As at September 30, 2009 the Company had a working capital deficiency of $5,830,238 compared to a working capital deficiency of $14,985,245 at December 31, 2008, a decrease of 38%. The Company is working diligently to continue to reduce this deficit.
During the third quarter of 2009, the Company announced the signing of a term sheet for a US$33million prepaid gold forward sale to a major international bank with a significant gold trading business. This term sheet was conditional on a $20 million dollar equity offering. Consequently the Company signed a non binding term sheet with Gravity/Kirkland for a $21million dollar private placement. It is expected that these financings will close in mid December. In total the new financing will be providing the Company with $56 million dollars of new money to start up the Lamaque project. In addition to these financings, the Company has an arrangement with Investissement Québec to buy out their note for $8.75 million dollars and 5 million shares of Century.
In the third quarter the Company completed a flow-through private placement for $1.1 million. Two additional flow-through private placements in the amounts of $1.3 million and $2.7 million were completed in October and November.
The 2010 forecasted production from the Lamaque and San Juan is estimated to be 70,000 ounces. The cash cost at San Juan is expected to be similar to that in 2009. Lamaque's production costs will be capitalized until such time that the project reaches commercial production levels as defined under Canadian GAAP.
Margaret Kent, President and CEO of Century commented, "As we have discussed in our MD&A, the worst times are behind us. Our financing plans that we will be closing in mid-December will be accretive to our shareholders and insure over time that all our creditors will be paid in full. Our Peru operation continues to be cash flow positive and we look forward to reinvesting the cash generated from the operation to expand production".
Ms. Kent further commented, "The Company has worked diligently to reduce its working capital deficit. The year end financial statements, which will reflect the closing of the proposed financings will show a significant reduction in the Company's liabilities".
About Century Mining Corporation
Century Mining Corporation is a junior gold producer. The Company owns and is working towards the start up of the Lamaque mine in Québec that historically has produced over 9.2 million ounces of gold. In Peru, Century wholly-owned subsidiaries own an 82.6% interest in the San Juan Mine where the Company accounts for 100% of gold production. Total gold production for 2007 and 2008 was 63,124 and 14,252 ounces of gold, respectively.
"Margaret M. Kent"
Chairman, President & CEO
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the contents of this press
Caution Concerning Forward-Looking Information
This press release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws. We use words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in gold and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our South American activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis included in this Annual Report, in our Annual Information Form and in other filings made by us with the Securities and Exchange Commission and with Canadian securities regulatory authorities and available at www.sedar.com.
While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information.
SOURCE CENTURY MINING CORPORATION
For further information: For further information: Phone: (877) 284-6535 or (360) 332-4653, Fax: (360) 332-4652, Website: www.centurymining.com