Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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NOmad
If you think drilling 100,000 meters, getting assays back after qa/qc (think 3-4 months), compiling, intergarting with geology, converting to a indicated resource and THEN feeding this forward into a FS is over quickly, think again.
Regardess, the timelines communicated are very clear, and reasonable cosnidering the variables in play.
•"West Africa. Work is continuing towards the delivery of the Doropo pre-feasibility study ("PFS") by the end of the
year. The field programme has seen the completion of more than 100,000 metres of drilling which is expected to
convert the majority of the Inferred Resource to the Indicated Resource category and support the completion of
the PFS by the end of Q4 2022."
the gnome
The Doropo PFS was due in mid 2022, now there is talk of it coming out by the end of the year. Why the delay? No reasons given, Martin just glosses over it like there is no change there!!
Another method is to look at USA money supply at M1 and M3. A further method is the ratio of USA 30 year treasuries over 10 year levels. The treasury rates ratio suggests gold is approaching a bottom like in 2018. The USA money supply data is two months old. It was suggesting gold at $2020 per ounce was fair value,but we do not know how fast the FED is moving money out of economy through the higher interest rates which encourage debt getting paid off and what is being done on QT. Perhaps we need to use all these kind of methods to get an understanding where gold real value should be.
If you convert major assets into gold ounces such as property. Gold is certainly not expensive. If we take past peaks in gold like 2011 a similar valued property at that time would cost say 340-380 ounces of gold. Today its 570-580 ounces by my estimates and when gold was really cheap like December 2015 that asset would be 720 ounces or nearly double at the peak of being over valued. At $ 1820-1840 gold prices were on the median. They are now 7% below that mean which gives a $1694 gold price or 580 ounces for say a nice property asset. Gold can go lower in value, but then everything else is more over priced. Gold has to correct at some point back to its mean. So either everything else collapses in price to where gold is now or it retains its value and gold has to go back up. In the 1970's gold became hugely over valued and it took two decades to get to the metrics I have described. The time to be buying gold is when its valuation falls below the mean of major assets that are around you. In my opinion we are now 7% below the mean and the question is how far does the market take it. $1380 gold per ounce is the nadir price of December 2015, however an elevated USD currency over today, raises that price higher so any asset that you measure has to be converted into USD.
No one has a clue unless you name a time period. 1 hour, 1 day, 1 week, 1 month, 1 year
The answer depends on the time period.
Nor a bad quarter for CEY. Solid. Mving towards being predictable.
A lot of other businesses are not even close. BlackRock is breaking the wrong records with $US1.7 trillion loss
BlackRock is used to breaking records. The world’s largest asset manager was the first firm to break through $US10 trillion of assets under management. But the bigger they are, the harder they fall. And this year BlackRock chalked up another record: the largest amount of money lost by a single firm over a six-month period. In the first half of this year, it lost $US1.7 trillion of clients’ money.
Well, well, the money gurus had a bad 6 months at the office.
The top major Super fund in Oz about 4 % net of fees and other small costs, over last 12 months
good luck to all, and go gold, and CEY
Steve I think quite a lot of people have had a clue where gold would go over the last year, down, and think further down. The trend is your friend or for us enemy.
No one has a clue where gold will go- balance is key
Looking like gold will be punished until at least tomorrow week ffs
to answer my own question diesel consumption for electrical generation was reported as 90-100m litres a year in 2020.
Cey is currently paying the Egyptian government 80c/litre for diesel so around US$80m a year on electrical generation alone. Solar ought to reduce that by around US$16m but connection to the grid would remove the remaining $64m dollar cost - although this would be replaced by a cost of buying 120MW of juice every year from the grid. There's also the fixed cost of building the power line out to the mine.
From Proactive this morning.
https://youtu.be/PjwAujgTDUM
Thanks 3bear :-)
Hi Paul - the mine is fully off grid and all of its energy is provided by burning 200 million litres of diesel a year - to power the trucks and plant but also to generate electricity. This is inefficient, polluting, expensive and about as bad as it gets from a carbon emissions pov. The only way to be less green I can think of would be to build a coal-fired power station on site. Solar will save 20million litres of diesel per annum, which is great but still leaves a 180m litre fuel bill. Grid connection would eradicate diesel generation of electricity - cheaper, more efficient and significantly greener. No-one asked how much fuel it would save - I'd like to know the answer to that.
Next stop, detailed half-year financials and declaration of the interim dividend on 4 August 2022.
Hopefully the solar will help bring down costs. There was something about connecting to the National grid?? I wonder if that is just about going over to more electric because of fuel costs or actualy feeding into the national grid?
Also I saw mention of taking delivery of some more of the alloy bodied trucks, so that should help. I would assume that the more waste from that pile they shift, it should get easier, quicker, cheaper?
I'll admit I dont really know how to read the figures, but it looks like Martin Horgan is just trying to keep things steady, regarding the RNS and there are no extravagant promises or last minute kicks in the nuts like we have had previously.
Obviously we could do with the price of gold rising and us hitting some good good grades along the way would help.
I find it hard to understand why gold isnt higher, especially with inflation running amok.
martin horgan....on sky news now
Sotolo thoroughly agree AISC at the higher end of $1275 to $1425 is a worry and how much of this is caused by the Capital waste project? There again a necessary evil and is this an ongoing cost with strip ratio closer to reality than earlier years where cut backs kept to a minimum?
Guess we won't know until 2024 when the waste contract has come to an end.
All in all a good RNS, sukari is looking in good shape to weather the current world problems.
I like this paragraph.
Sukari Bonanza zones. The Bast area between Ptah and Amun continues to return high grade underground zones of Bonanza style mineralisation. Drilling in this area demonstrates a consistent geological host within 100m of existing infrastructure which could improve underground operational flexibility through the development of a new high-grade mining area.
Remember that old joke: Two blokes are walking across open ground when suddenly they come across a tiger. One of them starts running and the other one shouts after him: 'You can't outrun a tiger' to which he answers back: ' I don't need to outrun the tiger - I just need to outrun you'
So what is the connection to Centamin?
Well to SteveJones' point, the SP is in the toilet. So what CEY needs to outrun in order to start moving up is the absolutely awful current expectations of the company. If it can perform mildly less rubbish than is expect then we will move up.
Martin Horgan definitely seems to be a 'tell us what we will deliver ' and then a 'deliver what I have told you' kind of guy. I really like the fact that once again there are no surprises and I think the market will too after so long when each update contained curve balls.
So far today the market seems to be responding positively.
apologies, 4.1m less capex than Q1
True- but the SP is in the toilet plus meeting expectations now and expansion possibilities there now, plus the changes they made will give greater control of costs
Just the increased AISC inflationary woes and pog to be of concern from now on then lol
big concern is the AISC - US$150.7million this quarter and that's with 20m less capex in it than Q1.
Production v good on the bright side.