Was indeed on the news last night and boy did he look a little strange - thinner and lots of floppy hair. Did his best to terrify everyone and then in a puff of smoke he's gone. Has he been knighted yet?
RE: Profit share, reminder!
My understanding is that there is still about $370m left to recoup so profit share won't start until 2017. It then goes 40/60 for 2 years and then 45/55 for two more years and then 50/50 for the remainder.
Profit share, reminder!
The profit share will be what the profit share will be – the joint venture partner, ie the government, sits in the 50% owned subsidiary Sukari Gold Mines. The management board of this subsidiary has representatives of the government and an equal number from Centamin. All of the investment into the Sukari mine is audited, with Sukari Gold Mines very much being a part of this process. Similarly, all gold sales go through Sukari Gold Mines, where the operating surplus will be divided 50/50 between the government and Centamin, once the original capital has been repaid back to Centamin and its shareholders. The 3% royalty has been paid to the Egyptian Treasury ever since production started (this also goes through SGM). With the above in mind, there is no issue with regards to the money that has been ploughed into Sukari, particularly the costs of Stage 4 (c.$350m) – this needs to be recouped before any of this operating surplus can be shared. It is all a function of the ramp up in production and the gold price. There is no dispute between Centamin, the Egyptian government and/or EMRA, nor the 50/50 Sukari Gold Mines subsidiary. What you are getting is probably a series of people mouthing off that they want profit share now. This is a political game more than anything, as the deal is the deal (in fact Centamin have advanced the country a few million dollars as a demonstration of their faith in this deal – this will also be recouped out of future operating surpluses due to the government). What is wonderful is that very few people seem to understand what this 50/50 deal is – it is effectively a 50% tax on free cash flow. In fact the 50% will not kick in until 2016, as in 2015 this will be 45%. To counter this there is no VAT, no corporation tax, no other taxes to pay all beyond the above and the royalty, which on a blended rate compares reasonably well with other 1st world mining jurisdictions (like the US, Australia, Northern Europe etc). Tibbs
42 mins ago
BERLIN (Reuters) - German Chancellor Angela Merkel said on Tuesday that Germany would not negotiate on a new bailout agreement for Greece before its referendum which is planned for Sunday. "Before a referendum, as planned, is carried out, we won't negotiate on anything new at all," Merkel said. She added that this applied regardless of whether new offers were made on Tuesday, suggesting it was now too late to vet them. Merkel placed the blame on the Greek government for allowing its bailout programme to expire tonight.
5 mins ago!
BRUSSELS (Reuters) - China used an EU summit on Monday to promise to invest in the bloc's new infrastructure fund, call for a global climate deal and warn it did not want to see Greece leave the euro zone. Premier Li Keqiang, in Europe on a day when financial markets took fright that Greece might leave the euro, said China and the world wanted to see Athens remain in the currency area and that China would continue to buy euro zone debt. Following his first summit with top EU officials, Li declined to say whether Beijing could come to Greece's aid with loans, but commented: "China is ready to play a constructive role." Li struck a positive note at the meeting with the new heads of the European Commission, Jean-Claude Juncker, and of the European Council of EU leaders, Donald Tusk, saying China was ready to invest in the European Union's new 315 billion-euro infrastructure fund. "China's decision to participate is a grand one," Li said, although he declined to say how much Beijing would spend. "China has ample foreign exchange reserves," he added, also suggesting the creation of an additional joint EU-China investment fund. The pledges follow decisions by EU governments to join the Chinese-led Asian Infrastructure Investment Bank (AIIB), in defiance of Washington. But the Greek crisis overshadowed the summit. Juncker arrived late for a business conference before the formal start of the summit, where he shared the podium with Li, saying: "Don't blame me, blame Greece." Li, essentially the man in charge of China's economy, the world's second largest, said China wanted a strong euro zone. "It is in China's interest. We would like to see Greece staying in the euro zone and we urge the international creditors to reach an agreement with the Greek side," he said. The European Union is pushing for a new global deal on climate change at U.N. talks later this year, hosted by France. China is responsible for around 25 percent of all greenhouse gas emissions. Li said China would submit to the United Nations by Tuesday a promise to cut emissions. It is expected to pledge that they will peak "around 2030" and officials and analysts say it can easily achieve that. China and the European Union "must step up their cooperation ... to establish a fair, reasonable, win-win global climate governance system," Li said.
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