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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!
Quite So Somnamna!,
Kees Dekker looked at HZM some time ago as on first impression it looked good.
They claimed that the process route (always a risk when dealing with laterite) was sorted out and the capex and opex estimated by consultancies/persons with a lot of experience in the field of Ni-laterite leaching!
It shows again that the consultants are totally biased in favour of promoting companies and do not give a stuff about how much damage they can do to investors. Until there is some sort of sanction on them this will continue.
The stock exchange regulators are also biased in favour of companies by not instituting stricter measures for reporting. After Bre-X they went to sleep.
The overriding problem is that consultants are employed by companies (one does not bite the hand that feeds you) and stock exchanges chase companies to list with them, again a one-sided relationship!
SP dropped another 15p today from 50p to 35p. Scary.
How long have they fixed the price for ?, thanks in advance
3bear
There are plenty of clowns around, best let them run their race, and in the mean time firm up your race, and I am firming mine,
Really so much PAID stupidity around and unpaid helpers, its no wonder people get confused
the gnome
It was a punt and at the moment it looks like a good one. Maybe Martin Horgan thought it was worth the punt to keep things steady? We could do with a good Q3 update and an update on the waste clearance. Without that millstone round our necks, things should start to look a lot better.
I am amazed - all the people on here who were grumbling about the $25 an ounce cost of hedging at $1900 are now on here praising the management for their foresight and prudent husbandry now the GP is 1826. Er hang on...where are those posts?
What a well-run company this is.