Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Please note HISTORICAL post January 31, 2018 | 5:56 am
Centamin shareholders get bumper divvy, despite 2017 profit fall!
Egypt-focused gold miner Centamin (TSX:CEE) (LON:CEY) delivered good news to its shareholders on Wednesdays, announcing it would pay a final dividend of 10 US cents per share, or a total of $144 million, as it vowed to return all of its excess cash to investors.
The payment, on top of 2.5 cents given at the half-year, follows an $111 million compensation to Egypt in 2017, the first year of Centamin’s profit-sharing deal with the country’s government.
Such agreement, which kicked in when the company finished paying off the capital costs of Sukari, its only producing mine, gives Egypt 40% of profits for the next three years, and 50% after that.
The dividend, which almost double some analyst estimates, came despite a 13% drop in core profit for 2017 due to falling gold production and higher costs.
Earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $326 million in the year ended on Dec. 31, the miner said.
Sukari, which began operations in January 2010, produced 544,658 ounces of gold last year at an all-in sustaining cost (AISC) of $790 an ounce. Set against an average price received of $1,261 per ounce, the mine generated $224 million in pre-tax profits for 2017.
“Sukari has produced every single commercial ounce of gold that Egypt has exported over the past eight years, which by the end of 2017 stood at over 2.9 million ounces,” the company’s chairman, Josef El-Raghy, said in a statement.
Centamin, which has been looking into expanding beyond Egypt by exploring and developing three gold projects in two other African countries, doubled the expected gold resource found at the Ivory Coast asset, and said it had also discovered another “exciting” discovery of a 12km-long “gold bearing structure”.
In Burkina Faso, the company is drilling the targeted resource and reserve expansion near Konkera.
Centamin chief executive, Andrew Pardey, said that despite the initial positive results outside Egypt, the company would not build a mine “for the sake of it.”
“We’d like to have a portfolio of mines, we’d like to have more mines in Egypt as well,” he told investors while delivering full-year results. “But it’s all about efficiencies and making sure those mines generate returns.”
Shares in Centamin jumped almost 2.56% in early trading in Toronto to Cdn$2.82, and were up 1.9% to 162.2 p in London mid-afternoon
https://www.mining.com/centamin-shareholders-get-bumper-divvy-despite-2017-profit-fall/
Hi Sotolo,
I hope that you do well out of your decision, you ceratinly deserve to achieve your goal of building that house!
Ahram Online , Wednesday 28 Feb 2024
Egypt signed seven Memoranda of Understanding (MOUs) on Wednesday in green hydrogen and renewable energy with seven global developers with expected investments worth $41 billion over ten years, the Egyptian Government announced.
https://english.ahram.org.eg/NewsContent/3/16/518563/Business/Energy/Egypt-signs--MoUs-in-green-hydrogen-and-renewable-.aspx
Shifting gears in the fight against climate change
Each truck, capable of carrying 290 tons, currently burns roughly 3,000 litres of diesel fuel and emits eight tons of CO2 emissions each day. The climate change mitigation potential of hydrogen-converted mining trucks is staggering: if the 1,000+ open-pit mines worldwide switched to hydrogen-fuelled trucks, a colossal 120,000 kilotons of emissions would be eliminated from the atmosphere each year.
https://tractebel-engie.com/en/news/2023/world-s-first-hydrogen-powered-mining-truck-to-save-eight-tons-of-co2-per-day
Learn about our nuGen™ hydrogen-powered ultra-class mine haul truck and witness its first motion.
https://www.youtube.com/watch?v=jRDcs3FCvP8
Note -Centamin are aware of this technology in mining trucks and it is an option they are considering adopting as an alternative to diesel.
Tibbs you are absolutely right, I don’t like Maguire so don’t bother to read him but you have every right to post him. Viz the 52.5% to the government, we then pay no more tax so ends up actually less than some other rivals so I am perfectly happy with it. I remain more optimistic than you: if profit is $1000 on 500k oz that is £200m as long as they don’t spend too much of that on Doropo speculation imho, though it is better that they are at least investing in the future, why I bought more yesterday, time will tell. All best
Ahram Online , Friday 22 Mar 2024
Egyptian governorates announced rising fares for public transportation and taxis, effective Friday, following an overnight hike in gasoline and diesel prices.
https://english.ahram.org.eg/NewsContent/1/1235/519800/Egypt/Urban--Transport/Egypt-raises-transportation-fares-after-hikes-in-f.aspx
Note Centamin's diesel prices are agreed in advance at a contract rate usually over six months or more.
Dear Steve Jones,
Be honest you are ust hoping to trade out of some spike in the share price based on as yet undelivered predictions from the CEO until reality kicks in and the share price crashes back down again so that you can do more of the same.
The reality is that the share price movement is constipated and the divi is now little more than table scraps and anyone considering investing in the company need to be aware before making a decision to invest of why the company is in the present situation and aware of effects on the bottom line by the very large brick of a 50% profit share on Centamin's tail.
It was the El Raghy family who were the main instigators of the creation of what some thought to be an over generous dividend policy, which is quite understandable considering the millions of shares they acquired from the early days of the company, they were raking it in!
That said so were long term share holders, although likely after the narrowly avoided implosion of the open pit and and realising the gigantean costs of the clear up what was considered by some as an overgenerous divided policy is something that the present management would have preferred to have gotten out of, but they realised that just to stop paying the divi would be impossible so they seem instead to have adopted a policy of eroding the dividend by a thousand whilst diverting the sheeple's by making predictions of "Good times coming"
It is a mistake to assume that everyone is aware of the issues with the Egyptian economy, I come across people everyday who aren't .
The article from Investing.com is the journalists present opinion on the latest results and so relevant to anyone who is already invested in Egypt and also to anyone who may be considering investing into Centamin.
If you don't like Andrew Maguire or his pretensions for whatever reasons then that's your opinion, viewing is optional!
Tibbs
If any of you can work it out on the back of a ciggie packet etc? Given that the policy is still supposed to be about returning 30% of the profit to shareholders, how much profit would they need to give a decent dividend?
I understand that the more they spend, the less profit there will be, but with the current price of gold (if it holds) and if production and AISC are at the midpoints, surely there should be enough for a decent dividend?
After Thursday and yesterdays fall in the POG, I try to cheer myself up a bit by thinking that it has dropped a bit but it is still at $2165. It would be nice if it climbs, but honestly, I think most of us would be happy if it stayed at that level for the year.
Good to hear from you Goldgnome.
I was beginning to think we’d lost you.
Centamin is cutting a positive path to prosperity all be it at slow pace but recovery nonetheless.
Happy Saturday
All good thanks, in the sweltering Colony to the south. Gold is going well against the fiats. I have been burying mself in trying to understand why the US$ is so strong when they have zero credible leadership, truck loads of debt just nipped over the $24 trillion (for those interested the next stop after trillions is quadrillions, 1,000,000,000,000,000 ), a health system that fails all but the very well healed, and so on and so forth.
CEY I note, the share price and some positive results ...
"an inflection point that will soon see us rewarded for the multi-year investment programme, with stronger free cash flow enabling us to deliver that growth while maintaining our track record of dividend payments."
Gold production is seen estimated at between 470,000 to 500,000 ounces, with a weighting towards the second half. The all-in sustaining costs guidance is USD1,200 to USD1,350 per gold ounce sold is comfortable and gold levels of us$2,200 per ounce..thats a $1,000 clear per ounce, and its a good place tobe in ....and they are producing to guidance regularly now, unlike the Pardey reign!
So I am starting to feel relaxed and somewhat comfortable...? ...
I have spent a month or so hiding in Africa, where most of the countries are well and truly broke. Lovely to spend time in Uganda, a beautiful country with such wreteched poitics, going from bad to worse. Uganda’s President Museveni has promoted his son to army chief, and if you drive the roads, you will a myriad government cars and troops flashing their way through the crowds, as if they owned the place (LOL). Recently, the president’s son has been holding rallies around the country (we ran into a few), violating a law barring serving army officers from engaging in partisan politics. But Kainerugaba says his activities, including the launch of activist group the Patriotic League of Uganda, are nonpartisan...LOL
Hello to all, and sorry for my silence ... I am back in the saddle ...
best luck to us all
The Gnome
Rebess, Horgan didn't volunteer the information about the soft 1st quarter it was as a result of a question from one of the corporate investors and then I followed up to understand more and asked about the production tonnes.
Mr T, everyone is well aware of Egypt issues, and bonkers for you to think than no one on this board isn’t aware of Maguire and all the other negative commentary - you’ve repeated this continually on this board.
Despite Centamin’s success story, it’s essential to acknowledge Egypt’s broader economic challenges. The country is grappling with high inflation, a heavy debt burden, trade deficits and other pressing issues threatening stability.
While recent geopolitical instability pushed the price of gold higher, such disruptions threaten global markets. For Egypt, they also cause revenue losses from the Suez Canal, further exacerbating economic woes and calling for careful evaluations of firms with key assets in such regions.
https://tinyurl.com/5n86j7j4
Hi Tornado,
Although there are those who attempt to deny all that you have explained because they have vested interests in keeping the manipulation going you are absolutely correct, Andrew Maguire has covered this subject/skulduggery in many of his presentations over the years.
Tibbs
Well done Sotolo!
And getting there Paul.
:-).
POG still higher than last year this time, but CEY sp starts to move down now. Horgan drew us a good picture of company future, hope this guy will not suddenly jump out to sell his own shares just like he did last year.
Bought a few more on the pull back, we shall see...
A rinse cycle (price depression) often happens after the FED pushes up gold and the miners with its talking known as the washing cycle. The reason for it is that gaps in the gold charts arise with Asia opening as well as London. USA starts the wash cycle, the Asian market drenches the gold parade and London gives it that last kicking to get all the gaps closed. Gaps in the gold charts always and I mean always get closed. Occasionally a gold market will dive down in seconds to go back up again just to record a low and close a gap. If a buy gets executed in that time frame it is that person's lucky day.
Not sure, I think the gold price yesterday was an indication of what will happen when interest rates are finally cut. And they will be.
Back down to 97p
Hi Rebess,
Many a true word
A slick, albeit rushed presentation of a jumble of as yet undelivered predictions and the enthusiastic proposed spending on new projects that may have contributed to a spike up in the share price, although that was most likely more related to the POG at that time.
But this presentation was a opportunity for the company whilst the share holders were still trying to comprehend the the finer details of it to slip in yet another cut in the dividend, possibly so it becomes accepted custom and practice until it eventually ceases to be!
Although I wasn't wearing the rose coloured glasses I was really hoping that this time my loss of confidence in the BOD was going to be unjustified and that this time was going to be different , even that a goodwill gesture of increase in the dividend would have been a start, but more of the same really , albeit in a slick presentation
"They giveth and they take it away"
Please be aware Historical post's of "Softness!"
The company also warned that production for the first nine months of 2019 is expected to be between 331,000 and 332,000 ounces. While lower than what originally expected, the company said the lower end of its full-year guidance range of 490,000 ounces of gold remains “achievable.”
https://www.mining.com/centamins-ceo-to-leave-after-challenging-year-for-the-miner/
The miner’s shares were down 12% by mid-afternoon in London at 110p, leaving it with a market capitalisation of £1.28 billion. The price drop is the highest since July, and takes the stock dangerously near to their second worst performance this year.
In February 2019, the stock price hit the lowest in six years after Centamin
https://otp.tools.investis.com/clients/uk/centamin_plc/rns/regulatory-story.aspx?cid=1756&newsid=1235519
Mirroring gold movements, albeit a tad delayed. For what it’s worth, it’s overdone.
I wouldn’t be overly concerned.
Liberium cut to hold- they’ve a pretty good record here (alas for some).
What is the saying about great minds Paul? :) :)
I thin the premature announcement about a 'soft Q1' hasn't helped. - I remember Pardey doing something similar and he crashed the SP through the floor.
That's odd. I've just mentioned something similar on a post I've just put up.
I thought the rise yesterday was a bit overdone. I sold the ones I bought last week for 111.6 and put a limit order in to buy them back, plus a few more at 108.6. I was just about to cancel the order this morning, seeing the overnight drop in the POG and try and be greedy and get them a couple of pence cheaper, but I was too slow. It actually went through at 107.96) If I had some spare money in my ISA, I would have been tempted to get a few thousand more at 104/ 105.
I think the drop this morning is overdone as well. Probably a combination of "Profit taking" (or is that "loss reduction"? ), the fall in the POG, a bit of panic and it being a Friday.
When I saw the price up over 111 yesterday I was expecting it to fall back a bit, but I didn't sell the majority of my shares for fear of maybe missing out on a continued rise. I wish the dividend was a bit higher as that would make me feel more comfortable, and probably a lot of other LTH's as well.
With the drop in price today, I am back in the red with Centamin . I don't normally deal. but my last few trades here were selling at 99.5 (wrong!) and buying back at around 104 (I think), selling at 111.6 and buying them and a few more back at 107.96. Obviously the price has dropped a bit since then.
So--swings and roundabouts. I think I'm marginally in front compared to just holding, as I have a few more shares than I did.
I don't know if anyone could check/ keeps records, but it seems that whenever Centamin have a good days rise-----say 4% or more, that is usually drops back most of it the next day?