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Think its pretty safe to assume like most dictators Sisi wont be going short of any food or drink unlike his people whom he really doesn't care a jot about!!
Alaa Abdel Fattah and Mohamed Baker were held in inhumane conditions at the Tora Maximum Security 2 Prison, in Cairo from September 2019 to May and October 2022, respectively. Prison authorities held them in small, poorly ventilated cells and have denied them beds and mattresses
https://www.amnesty.org.uk/urgent-actions/human-rights-defender-tortured-detention
Death sentences were handed down after grossly unfair trials and executions were carried out. Sexual and gender-based violence remained prevalent, amid the authorities’ failure to adequately prevent and punish it. Authorities repressed workers’ right to strike, and failed to protect them from unfair dismissal by companies.
https://www.amnestyusa.org/countries/egypt/
Hi Tornado,
Seems to have been a prudent move, although this isn't reflected in the ridiculous share price!
Pound has dropped further when I last looked. Pound in gold rate is the same as it was 1 July as USD has took off. CFO was smart to hedge 1900 gold for half the production until end of June next year.
24 trades prior to trading, strange on no news.
European stock exchanges were lower ahead of the trading session on Wednesday as market participants prepared for services sector data out of Germany, the Eurozone, the United Kingdom, as well as euro area retail sales and producer inflation reports.
The DAX decreased by 0.27%, London's FTSE 100 declined by 0.13%, the CAC 40 was 0.23% lower and the EURO STOXX 50 lost 0.20% at 7:51 am CET.
The euro and the pound were both flat compared to the dollar, changing hands for 1.04691 and 1.20776, respectively, at 7:54 am CET.
Baha Breaking News (BBN) / MS
Happy Hump Y’al
The technical term is called a 'commitment fee' and it was $ 1,200,000 for last year
details from Annual Financial Statement below:
2.6 FINANCIAL INSTRUMENTS
Interest bearing loans and borrowings
US$150 million Revolving Credit Facility (“RCF”)
On 22 December 2022, the Company entered into an agreement for a US$150 million RCF with four banks: Bank of Montreal (London Branch), HSBC Bank plc, ING Bank N.V. (Amsterdam Branch) and Nedbank Limited (London Branch).
As at 31 December 2022, there were no drawdowns on the facility and therefore no interest expense was recognized in the period. A facility establishment and commitment fee of US$1.2 million was recognized in the profit or loss statement.
The terms of the facility imposes certain financial covenants on the Company in respect of each Relevant Period that has an outstanding borrowing as outlined below i.e., the Company shall ensure that:
a) Interest Cover: Interest Cover in respect of any Relevant Period shall not be less than the ratio of 4:1;
b) Leverage: Leverage in respect of any Relevant Period shall not exceed the ratio of 3:1;
c) Liquidity: Liquidity shall at all times exceed US$50,000,000; and
d) Reserve Tail: at each Scheduled Reserves Assessment Date, the Reserve Tail Ratio is not less than thirty per cent
Typically the undrawn portion has a commitment fee of 35% of the applicable margin (0.8% based on currently applicable margin) i.e. $150,000,000 x .8% = $1,200,000
And for those wondering what a reserve tail is :
Reserve Tail means, with reference to the Development Plan and the Financial Model, the amount of Mining Reserves remaining to be produced as of the Maturity Date expressed as a percentage of the sum of (i) the Mining Reserves already produced at the Project and (ii) the Mining Reserves to be produced as of the relevant date of determination
Wow, you are really on a mission dude. Who is paying you? It's not Barrick cos the Nubian Shield has massive, massive, undeveloped potential...can't figure it out.
Dictators and thugs, every one. Here's a quote from Egypt's Sisi just published:
Calling his detractors “liars, saboteurs and wicked”, the Egyptian leader sought to rebuff criticism of the multibillion-dollar infrastructure projects he has undertaken since taking office, which are described by critics as unnecessary, extravagant and major contributors to Egypt’s economic crisis.
“Don’t you Egyptians dare say you would rather eat than build and progress,” Mr El Sisi said. “If the price of the nation’s progress and prosperity is to go hungry and thirsty, then let us not eat or drink.
“Don’t undermine the cause of our nation and make us the world’s laughing stock. Stand fast and transform the cruel circumstances we are going through into a gift. The harder you stand fast, the sooner it (economic crisis) will pass,” he said on Saturday, the first day of a three-day forum during which, according to Mr El Sisi, the story of Egypt since 2011 will be told from the state’s perspective.
With most of Egypt’s 105 million people struggling to cope with soaring food prices – inflation was at nearly 40 per cent in August – Mr El Sisi’s message to Egyptians to make do with even less may be seen by some as unrealistic, or even odd.
“What kind of country do you want to live in? Do you want to build Egypt and make it a nation of note, or not? Do you consider building an adventure? Do you consider reform an adventure?” Mr El Sisi said on Saturday.
The president's message that Egyptians should make do with less for the sake of the nation is being repeated, in different phrasing, by dozens of content creators across social media pages that have popped up in recent weeks to support Mr El Sisi in the December vote.
“Egypt needs a new president. El Sisi has done everything he can to protect Egypt and must be offered our thanks. Ten years are enough.”
Another senior politician, former MP Mohamed Anwar Al Sadat, warned that Egypt could be divided or even plunged into chaos because of the economic crisis and the lack of genuine democratic rule.
“We need free and fair elections that are not engineered in advance. A vote that guarantees a just political environment. An election with results that are not known in advance and which are held in a competitive framework,” Mr Al Sadat said.
https://www.thenationalnews.com/mena/egypt/2023/10/02/el-sisi-tells-egyptians-to-make-do-with-less-as-criticism-mounts-ahead-of-elections/
So, for those hoping the BRICS will somehow put the US 'in its place' - I ask you, do you want the likes of India's Modi (who recently had a Canadian murdered on our own soil) or Putin or Sisi to rise to global dominance? I certainly don't.
Exorbitant - or absolutely the international going rate?
Yes.
Centamin has already paid exorbitant fees, yearly, just for the privilege of having the LOC waiting.
Have they done this?
- pay several million yearly to the bank consortium to secure the $150 million line of credit
Cowicant - they haven't have they? They've just got a rolling credit facility that they will certainly need to develop Doropo. Not costing them millions at all until they draw it down. Excellent work by the management yet again. What a great company this is and what a fantastic world class ore body they have that is being efficiently assessed and efficiently mined for the first time in years. And what fantastic prospects in West Africa. Wow this company is so good.
Hi Steve, I don't see it like that. They presented it as we've got a lot of big bills coming up so we're taking the prudent step of guaranteeing some of our income to make sure we can pay them - whatever happens to the GP. If the gold price rockets to 2400 tomorrow there's no upside limit either. This was a good deal.
Header should be, Egypts shortage of dollars.
In case people have forgotten ,Egypt has full membership of BRICS , 01 .01 .2024.
Bye Bye $ , trade.
Certainly most of it.
The slight fly in the ointment so to speak, is it was their first hedge, which may have alarm bells to a few, that they are sailing very close to the wind finance wise and couldn't risk and cope with a big drop in gold... (somewhere well below the 1900 I mean).
Also very good points Cowichan which need answering!
Tuesday 3 Oct 2023
HSBC Egypt has decreased the limit on monthly cash withdrawals made abroad from $1500 to $1000 or its equivalent in other currencies. The new cap, which took effect on 1 October, applies to all cash withdrawals
Banks in Egypt have been expanding withdrawal and purchase limits on cards used outside the country amid severe foreign exchange shortages.
In August, Egypt’s foreign asset deficit amounted to nearly $25.92 billion.
https://www.reuters.com/world/middle-east/egyptian-banks-tighten-dollar-limits-after-currency-pressure-mounts-2022-10-10/
Note: Last October (2022), HSBC reduced the maximum monthly withdrawal for travel purposes to $1,500 from $5,000 (see below)
https://www.reuters.com/world/middle-east/egyptian-banks-tighten-dollar-limits-after-currency-pressure-mounts-2022-10-10/
------------------------------->>>>
Bottom Line: too little US$ = Egypt can't repay debts + too little imports + economy tanks = total chaos
Egypt’s sovereign credit has been moved to a “dislike stance” by Morgan Stanley
Egypt has lost favor with foreign portfolio investors who once saw it as a prime destination for hot money that kept its currency stable and boasted some of the world’s highest interest rates when adjusted for prices.
The prospect of a prolonged period of elevated rates in the US may now keep Egypt locked out of global capital markets for longer. The nation’s financing needs remain high at $24 billion in the fiscal year through June 2024, according to Morgan Stanley, and the amounts it’s getting from foreign direct investments, portfolio inflows and asset sales have been disappointing.
“The long-term drag on the credit remains the high financing needs this year into next year, particularly at a time when market access remains uncertain for single-B credits like Egypt,” the strategists said.
Egypt’s dollar debt has lost about 11% this year, the worst performer across emerging markets after Bolivia and Ecuador, according to Bloomberg indexes. Many of its bonds are in distressed territory, with the extra yield investors demand to buy Egyptian dollar bonds rather than Treasuries at 1,211 basis points on Friday.
https://www.bnnbloomberg.ca/morgan-stanley-turns-bearish-on-egypt-warns-risks-building-1.1979163
----------------------------->>>>
What happens to Sukari operations if Egypt defaults? Will it be harder to import supplies? Will input costs increase substantially? Too many unknowns to safely say - IMO Centamin is now uninvestable.
Ask yourself if Centamin needed to:
- pay several million yearly to the bank consortium to secure the $150 million line of credit (which Mr Horgan knows the co. won't need to tap until a definitive decision was made on Doropo - IF even then. That is on top of paying additional millions in premiums for gold puts.
If yes, then congratulations!
If no, then you share my opinion, secretly.
Hi 3bear,
Whenever a hedge is taken out there is never any certainty if it was a prudent decision or not, however in this instance they seem to have made a very wise move!
So hang on, at the time of the put centamin was bending to the bankers' will unnecessarily and wasting money it didn't need to. And now it turns out to be a very smart move it was all the bankers' judgement and nothing to do with good management at all?
I suppose there is a sort of consistency there... and it does maintain a record of unremitting negativity in all possible circumstances - impressive!
What century doth this ring?
Please do not mislead the misled.
It was not Mr Horgan's husbandry that fore soothsaid said gold puts -
It was the bankers to wit they signed agreements for to borrow 150 million -
Smart money, not gold diggers, make prudent managers
MoreCheese - they have an option to sell 20,000oz per month at $1900 until next July or thereabouts. This hedge cost them US6million and is to guarantee income levels at a time when they are looking at investing several hundred million bucks in solar expansion, grid connection, gravity circuit, waste stripping, eastern desert exploration and building a new goldmine from scratch close to a national park in Cote D'Ivoire.
Perhaps people can now see what an eminently sensible move this was. Even if they get back less than the 6million over the 12 month period the point is that income is guaranteed at a time when many expensive projects are either in hand, nearing completion or about to begin.
See my previous post on this issue.
Somnamna,
As we are all aware hindsight is a great thing, ex specially wjhen it turns out that you weren't given fullfacts to base investment decisions on!
Bet the directors were OK though!