Remember Centamin were £2.00 long before stage 4 was opened and at that time they weren't producing 50% of what they are now, true the price of gold has dropped, but even so I see £2.00 not so far off once the CC is won! Also now CAPX is paid off and Centamin does not have the operating costs or the debt of many of it's peer's and now operates in a more stable country with a government that is keen to attract more foreign investment! As to the SCC commissioners I am not worried because Centamin will win the case anyway, so their opinion is irrelevant far as we are concerned!
I've been trying to estimate where the SP will be should we win the court case.
Looking at some of CEY's competitors all have fallen from grace since the wonderful highs of 2010. African Barrick for instance has suffered around a 65% drop since Sept 2010. Had Centamin fallen 65% from the same period, that would put us around 65-70p right now, but production is much improved, so I feel that somewhere between 90p - £1 would be a fair estimate. Perhaps seeing £1.15 around good news. Of course, very long term, should gold revisit it's highs then perhaps we could see £1.50 - £2 in a few years. Any thoughts? Also on the flipside and shorter term where do we think this could go on a negative reaction from the SCC commissioners?
I had shed loads of RBS and after hoping for years that it may recover when they announced a 1consolidaton of 10 to 1 old share It really was time to buy into something good, run by people who know what they are doing so I sold RBS, and Lloyds then bought into Centamin! I am so glad I did!
That quote doesn't fully explain his reasoning on why Gold isn't a good investment. If you look at the opportunity cost of owning all the gold in the world (roughly $3 trillion), compare what else that would buy you. You could own all the best best businesses in the world that would produce a cash flow for you, Gold wouldn't. From that perspective Gold is not a good investment.
Gold is only partially priced according to demand and supply. You can run historic correlations and you will see that. Mostly driven by sentiment towards it being a store of value when fiat money is no longer a viable option. So I would say owning Gold outright depends on greater fools theory. Owning a gold mine is a different story, you own an asset that produces cash flow.
Indeed. And considering that 60% or more of annual gold production is used in jewellery, dentistry or electronics.. he is also talking b@ll@cks. I suspect its a good yarn he likes to trot out for fellow billionaires to have a chuckle over, even though most of them also own gold and silver.
As ever Warren B gives good quote that the media love to hold up as the definitive view of a modern day oracle. Your quotation is often wheeled out on CNBC, The Wall St Journal etc as a reason to avoid the barbarous relic. But in reality WB is a huge precious metal fan.
It is on record (Google it) that Buffett holds 130 million ounces of silver built up gradually between 1997 and 2006.
Yield or no yield the world best investor will be fully aware that the fiat dollar has lost 93% of it's value over the last 100 years while gold has held its own. I'm sure shrewd Warren has a stack of gold too but don't blame him for keeping quiet about it.
The Great Sage (was that his nickname) of Omaha has been having some issues with his investment strategy of late. IBM, Coke and Tesco turning into ..... ???? - in the absence of the correct word I will just say disappointing investments. Any body agree?
One account I read said that he has taken a one billion hit on his IBM holding.
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