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.
Costs are recovered from immediate revenue, not writen down a t a future date. Since all the equipment and plant reverts to Egyptian ownership (with CEY maintaining an operating license), they cannot write it down in the future. What we are looking for is the net production surplus. Sometime in H12014. This is from the latest quarterly report (page 8):
COST RECOVERY AND PROFIT SHARE Based on current gold prices, production forecasts and operating expenses, it is expected that there will be a net production surplus (revenue in excess of production royalty and cost recoveries) available for sharing between EMRA and PGM for the SGM financial year ending 30 June 2014 (SGM’s accounting period is 1 July to 30 June). Page 8 Any disruption to operations or reduction in gold price realised will delay this profit sharing. This expected profit sharing takes into account the costs incurred on paying for fuel at international prices. Any recovery of these prepayments, discussed above, will result in further amounts to be shared between EMRA and PGM. Following discussions with EMRA, and with a view to demonstrating goodwill toward the Egyptian government, during Q1 an advance payment was made in relation to this likely 2014 profit share to the value of US$8.2 million and this advance payment will be netted off against any future profit share that becomes payable.
Glad that you can sleep easy now, still wait and see what happens then, because advise from a chap on a train is worth much more than some of the old tosh spouted on here concerning Centamin! I shall certainly be sleeping soundly in the big bed as will a few others soon!
I sometimes see a chap on the train from London and he grinned when I mentioned Centamin dropping out of the ftsee 250 and he said that it wasn't going to happen because the will wasn't there to remove it and in any case there wasn't a good reason to! Tibbs
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