This news release is no joke. Until there is an offer for a merger or takeover, I remain a doubter. The really bad news is the hint about needing more funds for operations. We will not see $1 until we becaome cash flow positive and show that we can pay our bills. A second sobering thought is this news just deepens the perception that CMM is cursed with over promise, under delivery, delays, and bad management.
The bad management comes from past reputation. Even with a new CEO and a likeable Peter Ball, the tarnish of the past remains. This break down with equipment should not be a surprise to those inside operations. CMM has purchased some new equipment but much of the old remains. Anybody who has worked on a production line knows it never showers, it pours. So when bad luck comes, it seems to come at the worst possible time. It has here. Thankfully, gold is showing that it will stay above $1,400 an ounce. The reduced production could be worse financially for CMM.
This is no conspiracy or manipulative scheme but purely bad luck and/or bad timing for us. With the gold price and the good prospects before us, I am sure CMM will weather this storm. One friend emailed me late yesterday afternoon that his charts told him the upward momentum for CMM was over. He sold at 76 cents. I didn't believe him. I only hope he has bought back in early this morning. It will be nice to close in the low 60's but the high 50's will satisfy me until the dust settles a bit and we see what management has planned.
