Reuters report (click share news above) that Centamin will definitely not bid in the latest gold exploration round.
So the only gold producer in Egypt which has : the only producer mine in Egypt; a proven expert mining team; a cash pile for investment; no debts; existing infrastructure and water, electricity; an expandable mill; and a large truck fleet.
Is not bidding. Well it is going to be very interesting to see who on earth thinks that they can make the terms work and make a profit.
The hubris of sticking to their model and mindset and turk war between the ministry and EMRA will probably ensure that another 6 months has been wasted. Centamin management are patiently waiting for sense to prevail as it will have to if Egypt is to expand its gold industry.
gold has risen in value by about $30 but only £2. What is happening at the moment is a fall in the value of the dollar which has come down by about 3% using the dollar index since its high point at the turn of the year,
This morning gold is up in dollars and no doubt CEY will respond accordingly. Gold, however, is flat in pounds over the weekend so for UK shareholders there is no gain. I wonder if the current recovery in the share value is being driven by US purchases? Certainly this explains Blackrock's interest
I come to the conclusion as A. Centamin was half the current price when POG was 1210 on the way up a year ago B. Centamin has risen 30% in a month in anticipation of rising POG C. The market is one like any when more buyers makes price rise, more sellers fall. Buyers buy in anticipation of what will happen next, sellers sell also in anticipation. Therefore the shares tend to rise and fall in expectation of gold price moves D. The price seems fair now, Barclays forecasts PE of 13.8 next year and 14.4 year after. There is the uncertainty of the Egypitianlaw and also further exploration on which future depends
I am all back in as I like CEY but it seems fairly valued, at current POG, and gold price is determined by how many people want it, so like house prices they may be high or low but are what they are, because of supply and demand, and especially expectation, the future depends very much on what the dollar and interest rates do.
Repression you are my kinda guy, well said if we had leaders with backbone like Mr Trump we would still own the world instead of being repressed in our own country, and as for Merkel don't get me started, Good luck to you and all,
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