We spoke to new Sterling Energy CEO Tony Hawkins about the latest changes happening at the company. Watch the full video here.
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This is due on 21 Apr (source Centamin website). Don't think this will be subject to FCA requested delays so should be very informative. A good one could be the catalyst for CEY to really motor.
Happy Easter all,
Is the post ' One of our analysts...' a current post or an old one you are reposting for context?
Thanks for clarifying,
This was from a much missed member "Sinnerthesaint"
This is potentially very interesting. I remember enquiring what it would mean if AlFakharany were convicted in his earlier (political) case. One of the answers someone then gave me was that it wouldn't affect the CEY/EMRA case because it was unrelated and didn't have something to question his integrity (as an example he wasn't getting convicted for fraud). Now this (with evidence) is exactly THAT. His integrity is on the line... and (morally but efficient in court cases) him accusing someone else of the same (before he has spent his own sentence - i.e. reformed). Morally (perhaps less efficient in court but much more efficient politically) would be hypocrisy.
It potentially affects the CEY court-case in many ways.
1. The possible outcome itself.
2. The continuation of the appeal
3. The possibility of AlFakharany dropping the case
4. The Interior ministry looking into injunctions
5. The length of time for the case to go on
6. The little 'public' support he enjoyed will probably vanish quickly
Original post by Siko
Public Funds Investigators at the Interior Ministry confirmed that they have arrested Hamdy Alfakharany tonight and they have started questioning him.
He is accused of requesting 5 million Egyptian pounds as a bribery to withdraw a court case he had filed earlier to recover the land of the Nile Cotton company.
The interior ministry technical department managed to record - audio and video - Alfakharany while requesting the bribery. All telephone calls between Alfakharany and the relevant parties were recorded.
Alfakharany was arrested while getting paid the first instalment of the bribery (1,25 millions).
Investigations also showed that Alfakharany committed fraud with the papers of Madinaty case.
One of the analysts in London has picked up on the development in Cairo – GMP Securities issued the following this morning:
Centamin – CEY LN – thorn removed with arrest of main opponent to Sukari
• As operations continue their smooth progress and the company moves towards 500k oz for 2015, enabling the company to recently raise its dividend to a healthy ~3.7%, the story looks in good health.
• But one issue which has continued to hold back the company over recent years has been the blight of the court cases it has faced in Egypt, spear-headed by one particular individual (Hamdy Fakharany). So it is especially comforting to see management’s long-stated view (that this individual was only out for personal gain and they would not bow to his demands) corroborated by the fact that he has been arrested after being caught attempting to bribe a company facing a similar legal situation to CEY.
• He had sought payment from CEY in order for their court troubles to “disappear” which the company had consistently ignored – and that tactic looks like it will now pay off. Clearly it won’t be overnight progress, but as we have long-stated, the court cases facing the company have not been brought by the State, but rather an individual with an agenda. Now that this individual is likely removed, the company is in a solid position to continue unimpeded its strong operational progress.
• Remains my top pick of the growing, established lower cost producers and with a healthy dividend yield on top, it screens extremely well versus all peers.
the 2017 end of year report.
Concession Agreement court case
On 30 October 2012, the Administrative Court in Egypt handed down a judgment in relation to a claim brought by, amongst others, an independent member of a previous parliament, in which he argued for the nullification of the agreement that confers on the group rights
to operate in Egypt. This agreement, the Concession Agreement, was entered into between the Arab Republic of Egypt, the Egyptian Mineral Resources Authority and Centamin’s wholly-owned subsidiary Pharaoh Gold Mines, and was approved by the People’s Assembly as Law 222 of 1994.
In summary that judgment states that, although the Concession Agreement itself remains valid and in force, insufficient evidence had been submitted to Court in order to demonstrate that the 160km2 exploitation lease between PGM and EMRA had received approval from the relevant Minister as required by the terms of the Concession Agreement. Accordingly, the Court found that the exploitation lease in respect of the area of 160km2 was not valid although it stated that there was in existence such a lease in respect of an area of 3km2.
Centamin, however, is in possession of the executed original lease documentation which clearly shows that the 160km2 exploitation lease was approved by the Minister of Petroleum and Mineral Resources. It appears that an executed original document was not supplied to the Court in the first instance.
Upon notification of the judgment the group took various steps to protect its ability to continue to operate the mine at Sukari. These included lodging a formal appeal before the Supreme Administrative Court on 26 November 2012. In addition, in conjunction with the formal appeal the group applied to the Supreme Administrative Court to suspend the initial decision until such time as the court was able to consider and rule on the merits of the appeal. On 20 March 2013 the Court upheld this application thus suspending the initial decision and providing assurance that normal operations would be able to continue whilst the appeal process was under way.
EMRA lodged its own appeal in relation to this matter on 27 November 2012; the day after the Company’s appeal was lodged, supporting the group’s view in this matter. Furthermore, in late December 2012, the Minister of Petroleum lodged a supporting appeal and shortly thereafter publicly indicated that, in his view, the terms of the Concession Agreement were fair and that the exploitation lease was valid.
The Minister of Petroleum also expressed support for the investment and expertise that Centamin brings to the country. The Company believes this demonstrates the government’s commitment to the group’s investment at Sukari and the government’s desire to stimulate further investment in the Egyptian mining industry.
The Supreme Administrative Court has stayed the Concession Agreement appeal until the Supreme Constitutional Court has ruled.
I thought some newer member's may find the following of interest
The 3km is a complete red herring. The proof of license submitted by CEY at the end of last year is for the whole 160km. This has been acknowledged by the admin court and all of the judges in the supreme court - if this was not so Cey would not have been able to have continued mining, which does as we speak. There is a lot of noise around what the arguments are about, almost all of them wildly inaccurate, this being probably the most farcical of them all.
Cey has and continues to adhere to all of the conditions set in the original rule of law when they were granted the license. If they have transgressed this they would have been shut down a long time ago, let alone having spent close to $1bn on building Sukari.
I well remember your questions, he really didn't address that part of your question satisfactorily.
The price of gold hit a seven-year high on Thursday amid the ongoing crisis caused by the coronavirus pandemic.
More to come...
Breaking the News / MD
Most other gold plays are up 6% to 7%.
Come on CEY... get a move on. 140's beckons and 160's if we get into the 1700's on spot price
Fed Reserve action has lowered the dollar which is positive for Gold. I'd say gold is going to $1800's now.
CEY heading for 160p when they give up the games!
this could be massive for gold equity holders
Thought everyone would bail into Gold ahead of the easter weekend
Someone needs to wake up the CEY market makers. This should be 140's now
... well gold is at $1675 even if CEY is not.
Confidence we will follow but still surprised and annoyed that are going backwards today.
With gold at close to 1675 why would't you buy into CEY at these levels?
Mikefreedom I was of the same opinion as you Jeremy came across as good and enthusiastic get it sorted type and the last quarter of last year was very good and almost succeeded in hitting plan, however when I questioned him on the impact of the 4th quarter blitz and the 1st quarter reduction I didn't get a satisfactory response.
We will have to wait to see if he did actually have an ongoing impact as we haven't heard anything since end of last year.
This time, it could break out on the spot price. Traders worried about being caught out over the long extended weekend. Need to break 1675 spot to get into next leg up.
$1800oz is within sights based on currrent stimulus and QE measures. When equities get a bit frothy, then cash will flood into Gold imho
We expect the forward shape of the Chinese economy to be permanently different. With the above in mind, we expect the Chinese Politburo’s focus on self-sufficiency to elevate through domestic services and consumption. A few weeks ago, it was inconceivable that - after facing a supply shock in February - China’s economy is now facing a demand shock as the economies of its main customers slow. This has important implications to countries that rely on China as a destination for demand or intermediary packaging of products for global customers. For Australia, this means our dependency on China for services exports (which includes education) needs to be re-assessed as we think about Australia’s long-term economic vitality.
Survival of the fittest, prioritising resilience over efficiency of supply chains, coupled with
accelerated consolidation in the industries, as smaller businesses and highly levered business need to rethink the most optimal shape to their forward existence. In addition, some industries are facing the most anti-open market-based change, with private hospitals nationalised in Spain, the prospect of nationalising various modes of transport becoming very real in the UK, and with France stating its readiness to nationalise large businesses.
and on it goes, and where it stops, no one knows
the Gold Gnome!
Raises Centamin target price from 160 to 175. Buy rating.
My daughter asked me, how can the governments of countries issue trillions of $, and what impact does this have on my savings (she has been religous in saving every cent).
I choked, almost.
Told her to sit down, an told her the story.
Did you ever wonder why the younger generation live/spend for today?
the Gold Gnome
could see a strong day for gold as risk moves to the safe haven metal ahead of weekend
cey to 140p today??
Major European stock markets traded higher premarket on Thursday as investors are waiting for several data to be announced. UK National Statistics will release the data on industrial production and trade balance as well as on the gross domestic product of the country. Also, Statistisches Bundesamt Deutschland is expected to report the data on the Germany’s trade balance.
The FTSE 100 was up 0.64% at 7:30 am CET, while the DAX rose 0.98% at the same time. The CAC 40 jumped 0.20%.
The euro rose 0.06% against the dollar at 7:31 am CET, changing hands for $1.10864. The pound was down 0.09% concurrently to $1.23804.
Breaking the News / TF
But that message was from a mizolgit.
Spot64.you are right.
The rest the 157km square on new law.
If it comes to that.
No real problem. If government wants more investment.
And they do, especially now.
Bob I was not referring to you ,in my last message.
Just to be clear the court case is not related to the 3km Sukari site, it only affects the 160km outside of the 3km .
So if the worst was to happen and centamin lost the case, which is highly unlikely, nothing much would change.
Centamin would still have the mining rights to its current site which has never been in question which still has 20 yrs+ left and they would then just have to renegotiate the license to expand outside of this.
Daft as this may sound, it might be quicker and easier to just rip up the old licence and start again.
Lets not forget that the court case is Not between Centamin and the Egyptian government but just a private individual whose since been convicted and sent to prison.
Centamin is too valuable to the government to do anything to threaten its operation.
I was really hoping that you would offer your opinion on this, I understand that he was easily the best candidate at interview .
So I am also optimistic about his appointment.
Fair comments, no doubt Jeremy Langford deserves some credit for the part he played in improving production, although he clearly has his own career agenda, so it seems for the best that he moves on with the appointment of a new CEO.