Mainly the same as Fri 21:10 post, the extra bits are:
-$40 millions to be paid to the Egyptian government in July 2014.
-The financial disagreement between CEY & EMRA still exists, but it is not affecting the operations which are going according to the plans.
-There was a previous agreement between the 2 parties to refer to an international consulting firm to resolve the dispute, but EMRA refused and demanded resorting to the Central Auditing Organization and the experts of the Petroleum Authority and Mineral Resources. The issue has not been resolved yet.
-This will not cause any harm because the whole operation from start to finish is under the state's supervision and the investor has all the bills and receipts for everything bought to develop the mine.
-The revenue from the sales of the gold gets transferred to the company's bank accounts at CIB & HSBC which are subject to the supervision of the Egyptian Central Bank.
-The company is currently finishing the final fixtures of the fourth stage of the development of Alsukary mine and the production is expected to start in that phase in January 2014.
- Due to the economic conditions experienced by the country, the company paid $10.75 millions to the Egyptian government as part of the profits until EMRA finalises the final accounts of the annual profits .
-The company had previously paid $8 millions to the Egyptian government during the month of March.
-When the project starts production from the fourth stage, the production will increase , which also reflects on the increased profits .
Two good posts and I entirely agree. I already have a good holding here but will be topping up again next week as I can now see the sp steadily improving. Anyone thinking that they will be topping up in the 30's can keep on dreaming IMO. ATB GL Rich
I think the timing of all those payments are very significant. When Alfakharany filed the cc in 2011, part of his complaint was that Egypt had received only $19 millions from the mine all over the years (as royalties).
If the next payment goes through as planned in Feb 2014 (before the cc in march 2014), then the total amount paid to the Egyptian government within 8 months would be over $48 million (Jul 2013-Feb 2014) -$8.8 millions royalties Jul 2013 -$10.75 millions profits Dec 2013 -$9 millions royalties Feb 2014 -$20 millions profits Feb 2014
This would show the court that his financial claims were irrelevant and would add a big support to the cc on top of the signed contract.
Having been away from the board for about a week and with 20/20 hindsight it seems to me that the recent turnround is entirely due to the announcement by the Egyptian Government on Contract Law (Siko's post Wed 13:58). If so things are looking very positive and it may turn out that the CC is irrelevant. IMO this is not a time to be out of this share. Keep up the good work Siko and ignore the trolls. Your posts are vital.
Mr. Alkady "Alsukary CEO & EMRA's representative":
-Alsukary paid the Egyptian government yesterday $10.75 millions (a copy of the transfer is in the above link). -This was supposed to be $11 millions as part of the profits , but it was affected by the price of gold. -In Feb 2014, Egypt will get another $20 millions as profits + $9 millions as royalties. -This emphasizes the importance of maintaining this project and working on its development and support in light of the current economic conditions experienced by Egypt.
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