The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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First Majestic Temporarily Suspends Mining Activities at Jerritt Canyon
FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the "Company" or “First Majestic”) announces today it is taking action to reduce overall costs by reducing investments, temporarily suspending all mining activities and reducing its workforce at Jerritt Canyon effective immediately.
Over the past 22 months since the acquisition of the Jerritt Canyon Gold Mine in Nevada, the Company has been focused on increasing underground mining rates in order to sustainably feed the processing plant at a minimum of 3,000 tpd in order to generate free cash flow as our plans suggested. Despite these efforts, mining rates have remained below this threshold and cash costs per ounce have remained higher than anticipated primarily due to ongoing challenges such as contractor inefficiencies and high costs, inflationary cost pressures, lower than expected head grades and multiple extreme weather events affecting northern Nevada, which have compounded conditions and caused material headwinds for the operation.
“The decision to temporarily suspend mining activities at Jerritt Canyon, which represented approximately 21% of the Company’s 2022 revenue, was driven by our goal to produce profitable ounces across the Company,” stated Keith Neumeyer, President and CEO. “Since the acquisition in 2021, we have invested heavily at Jerritt Canyon and have been successful in executing several key projects. We rehabilitated and reopened the West Generator and Saval II underground mines and have successfully upgraded and modified the roaster and refinery off-gas handling systems to insure we remain fully compliant with all state and federal air quality standards. The team at Jerritt Canyon has helped the Company achieve significant milestones and we are thankful for their service. While mining activities have temporarily stopped, processing of the remaining surface stockpiles will occur for the next couple of months. The Company will continue exploring both near-mine and prospective regional greenfield targets to grow Jerritt Canyon’s resources, which we believe will significantly enhance the economics for the eventual restart of operations.”
During the suspension, the Company intends to process approximately 45,000 tonnes of aboveground stockpiles through the plant. Exploration activities are expected to also continue throughout 2023 with additional plans to:
• Explore for new regional discoveries and expand current known reserves and resources.
• Analyze the optimization of bulk mining and cost-effective mining methods.
• Conversion of inferred and indicated resources into measured resources.
• Reduce mining costs through adopting self-perform mining and improve contractor rates and terms.
• Continue modernizing the processing plant to be able to better withstand severe weather conditions.
As a result of the suspension, the Company’s previous production and cost guidance for Jerritt Canyon cant be relie
I have asked the webmaster to remove my duplicate post.
Fair comments Cowichan,
But then inst this the case the world over with those that have so much out of touch with those whose best interests they are supposedly representing!
How many loaves of bread for poor Egyptians would that helicopter flight buy?
Possibly EMRA & Centamin would like to reckon up the cost of this unnecessary extravagance and whatever the cost donate the same amount to buy and distribute loaves of bread to the poor?
Yep- pretty much not happening as per usual all day leading up to the FED/Powell specking shortly. ~85% for 25bps, but as always it's about what he says-markets need a reason to move, so we shall see- one good thing about being UK based for my trades (I don't trade on S&P for example), is that I don't do anything when he speaks, but that can mean missed opportunities- but then again, as I've mentioned here before, I used to CFG Gold futures, did well, then got one heck of a whack do never done it since!
Hitting the high of the day…
+ .6% touching it then dropping back, then going at it again
March 22, 2023
Tarek El-Molla, Minister of Petroleum and Mineral Resources, inaugurated the solar power plant at the Sukari mine
https://elbarima.com/%D8%A7%D9%84%D9%85%D9%84%D8%A7-%D9%8A%D9%81%D8%AA%D8%AA%D8%AD-%D8%A3%D9%83%D8%A8%D8%B1-%D9%85%D8%AD%D8%B7%D8%A9-%D8%B7%D8%A7%D9%82%D8%A9-%D8%B4%D9%85%D8%B3%D9%8A%D8%A9-%D9%81%D9%89-%D8%A7/
Link to pictures above
Note: El-Molla zoomed in and out of the desert via helicopter while everyday Egyptians wonder if their depreciating currency will still buy them a loaf of bread tomorrow. One thing Centamin's management and Egyptian politicians have in common - a disregard for frugality until it's forced upon them.
Paul,
Yes I believe Centamin are basically opening up/expanding the open pit to enable additional ore resources to be exposed and mined rather than rely on just a few areas available to mine as the pit gets deeper and tighter.
I would also suggest the expanded area is already contributing ounces and the additional flexibility to enable and provide some confidence to achieve the ounces required this year.
Thank you for that Dasut. Obviously without seeing it first hand, it is an educated guess what has gone on and what needed doing.
If you will have another guess for me please? Do you think that Martin Horgan is opening things up so he can "get a decent swing at things"? in the not too distant future?
Hi Dasut, I was informed they have all that in the contract!
You know your subject !
Thank you Dasut for that really clear and informative explanation, in 2016 , I won't go over old ground again regarding 2015 on, but Kees seems to agree that although painful for 4 years Martin Horgans strategy is the best way to restore Sukari and to ensure future flexibility of operations and so ensure more reliable and consitant production.
Dasut I would agree 100%.
Paul sorry should read 2 grammes per tonne not per ounce.
Mr T lets hope the Feasibility Study due soon provides some answers.
Mr T I would hope that Centamin have written into the contract that they have first refusal of the Capital Fleet at the end of the 4 year contract and would also hope that Mantrac had a maintenance contract for the fleet with all important accurate records to ensure the equipment is in good order.
Doropo Pre-Feasibility Study Update
https://tools.eurolandir.com/tools/Pressreleases/GetPressRelease/?ID=4210671&lang=en-GB&companycode=au-cey&v=
Analyst Observations
Without having access to a full explanation in a technical report it is impossible to comment from a position of knowledge.
A resource grade of 1.5 g/t Au using conceptual pit on the basis of a gold price is very attractive, but I do not know how the gold occurs. Is it in narrow, high grade lenses. or in a stockwork? What is the prospective strip ratio? Did they cut high grade outliers? Etc., etc.
What strikes me as very odd is the large difference in grade between Indicated and Inferred. What has confidence (i.e. the density of drilling) got to do with grade?
Paul, Firstly I retired back in 2008 albeit I did some consulting for a number of years and Burkina wasn't/isn't a country that I have a great deal of experience and I have no first hand knowledge of Martin Horgan. I have however spoken to people who have met him and or been involved with mines that he has had some degrees of responsibility and I am told that he is extremely knowledgeable on all aspects of mining and that he is a straight talker and well respected.
What would I have done to sort out the possible collapse of the North Wall, to be honest I have no idea because it depends on how bad the fissure is but first priority is to stay very clear and get in the experts and I am not an expert.
This stopped the mining of the North Wall and from what I understand or remember this was the area that was necessary to meet production estimates as the grades were predicted to be 2 grammes per ounce.
There was at that time very little that could then be done to maintain production because there was limited alternative ore resources that could be mined.
As far as I am concerned I would have liked the mining contract reduced to less than 4 years but what I hear and read is that the 4 years is described as a blitz or fast track so guess 4 years was deemed as being the optimum.
Don't get me wrong I would rather that this waste contract didn't have to happen and without walking the mine with the guys on the ground it is really difficult to fully understand why they got into this situation.
I will give you my opinion because looking from the outside it seems as though the waste removal is really like opening up a new mine where there is no free dig.
I am going to try now to explain what the mine will look like before mining starts. Imagine a barren landscape with out crops of rock. Free dig means the earth has gold fines invisible to the human eye weathered through the centuries known as oxides. Easy and relatively cheap to process through simple leach pad technology.
No free dig means the need to clear the top levels of waste to get down to ore bearing material hopefully oxides but the deeper you go less likely it is weathered so start getting into transitional and sulfides which will be processed through the plant.
This waste removal will involve drill and blasting, construction of haul roads, laying down dump sites, as I say like opening up a new mine or pit with little or no return but necessary to get to the ore bearing material so in my view the quicker the better.
Kees Decker is a well respected analyst but even with all of his experience without spending time on the mine much of what he is saying is based on what he is able to glean from reports not first hand knowledge that he can gather from questions and looking at the operation.
I hope my maybe over simplistic response helps answer the questions that you asked of Cowichan.
Law 32 should, therefore, render the third-party challenge to the Concession Agreement inadmissible (as no final judgment has yet been given in that case), although the validity of Law 32 was challenged and has been under review by the Supreme Constitutional Court. The court finally issued judgment in the case on 14 January 2023, dismissing the various challenges and upholding the constitutionality of Law 32.
The Group's (Centamin)Egyptian lawyers have now filed an application to the Supreme Administrative Court to resume proceedings in the original appeal (this is a purely procedural step) and they will then make a further application to the Supreme Administrative Court, on behalf of PGM, asking the court to confirm that the original complainant had no capacity to bring the claim in the first place, as he was not a party to the Concession Agreement. They will ask the court to reject the case in its entirety and treat it as never having been filed. If that occurs, the earlier judgment at first instance would be cancelled and the appeal proceedings would be terminated.
…………
Siko
Thank you for any reply.
CENTAMIN forecast gold production for its 2023 financial year of between 450,000 to 480,000 ounces which, at the higher end of guidance, would represent a 9% advance on 2021, itself 6% higher than in 2020.
The UK-listed company operates the Sukari mine in Egypt, an asset that has underperformed in the past, but which Centamin CEO Martin Horgan intends to boost to 500,000 oz/year in output from 2024.
https://www.miningmx.com/trending/52844-centamin-targets-up-to-9-increase-in-sukaris-2023-gold-production/
Major stock indexes in Europe traded higher at the premarket on Wednesday as investors anticipated the latest data on inflation in the United Kingdom. Traders will also be paying close attention to the Federal Reserve's monetary policy reveal, scheduled for later today.
The DAX rose 0.30% at 7:40 am CET, while the CAC 40 gained 0.21% and the FTSE 100 edged up 0.12% at the same time. The Euro Stoxx 50 increased 0.22% simultaneously.
The euro was flat against the dollar at 7:42 am CET, selling for 1.07647. The pound traded 0.13% above the greenback and went for 1.22340 concurrently.
Baha Breaking News (BBN) / AY
Happy hump y’al
Mr T are you away from Cornwall or just sleeping very badly? X
Dasut, I was informed that Centamin may consider taking on some/all of the Capital plant at the end of the Sukari clear up to replace some older fleet and possibly to use on any other Egyptian mining operations.
Hi Dasut,
No doubt you know the business of running mining plant, a really expensive operation to cleat Sukari but I also take your point about deprecation and ongoing maintenance costs, also have to allow for the unexpected repairs.
Also you explained the importance of understanding the how to construct the right type or design of road system in order to optimise tucking efficiency and keep wear and to to a minimum.
Dasut--I apologise for this, but can you look back to my earlier post where I was asking cowichan about various aspects of the mine and give me your take on it please? I know we have a few mining professionals on here and sadly forgot that you were/ are one.
Thanks.
Brilliant posts, thanks both. I drop in on the CEY board from time to time to read comments on gold more broadly and to see how CEY is doing. I used to trade the stock a few years ago and held a few for a while. I am considering taking a position again and today's tumble caught my eye. Need to do some more research first though as the company is has been through the mill since I was last invested.
Thanks again.
SM
Along with their operators.