Centamin PLC Share Chat (CEY)

Can anyone explain all these RNS today & what they mean?

Looks like today what with Endeavour prices falling 3.8% on the Canadian market and what with CEY centamin up nearly 15% the market has spoken and they will now have to raise their offer stakes to consider any serious merger/takeover, and the market knows it. The same happened with Barrick we got considerably more in the end from the first offer for Acacia mining, and by the way ABX "Barrick is today up 3-4%" they could well join the party here with their small change!!

You raise some very valid points.

It's hard to disagree that Endeavor's management has resulted in a preferred share graph trajectory. I think if Centamin had pursued a quick development plan for it's West Africa deposits the two graphs would look quite similar.

But that would have:
- added lots of debt
- eliminated dividends
- sacrificed future growth for short term performance

I for one will never be in favor of a tie up with Endeavor. Their assets are just not very good. Simply stated Endeavor made a promise of delivering growth and they are unable to deliver unless they pick up a better set of assets on the cheap. The only way this merger will go ahead is if there has been some back room dealings. Who knows what the real reasons are behind our chairman's long departure and our CEO stepping down. Disagreements with the direction of the company and/or tie ups would be my guess. Say what you want about Andrew's ability to run the company but I have always felt he had the shareholders best interest at heart. That is probably why none of this has come to light until now.

Endeavor is desperate to steal this company's assets and I for one will encourage Centamin's board to keep the doors tightly shut. And locked.

As their RNS states, Endeavour's share price is up 320%. Centamin's share price is flat. That tells its own story.
Endeavour's team have turned round an unpromising situation in West Africa. Centamin's have have failed to properly exploit one of the world's best ore bodies, or even to inform shareholders of basic matters. If you follow gold mining closely, you'll know there really is no comparison in the standard of the two companies' management. Centamin's board is bloated, greedy, and not very good at their job. Centamin's chairman also engineered a share price pump so that he could sell out his shares at a fundamentally false valuation. None of this is exactly news.

Yep the market are sure not impressed with their antics.

I have just written to Cey IR and asked them to pass on my thanks to the Centamin board for their wise decision to turn down this derisory offer!

Centamin is a highly profitable company, Endevour is making huge losses - so by what standard do you come to the conclusion that Endevour's management is more competent?

AISC would go below $900k/oz on 1.2m oz gold production.

Agree Mr T -The share price for us at GBP125 has a long way to go yet to be acceptable. The most annoying thing for me is to keep getting the declared interests now from the fund managers every five minuted declaring their interests under the requirements of when an offer is being made and all of the notified significant shareholders having to declare their interests under form 8.3

So now the joke offer has been made now how about a sensible one!
How much cash does Endeaver have in it's coffers when compared to Centamin?
This seems to me like the tail trying to wag the dog!

Had a quick look at Endeavour Mining numbers & looks like negative profit this year. I would say at first glance that their board not doing a brilliant job. At least CEY board has given us profit & dividends with no debt. Lets hope they fix the PR & we can get the SP back to where it should be. (Hopefully higher than my daft buy at £1.66 2.5 years ago. (:¬)

Fair and very valid comments Tornadotony, these are all very important factors that need consideration, resolvent and agreement before any merger takeover can be seriously negotiated and agreed.

CEY has been showing support at 115.39 and resistance at 131.95. Moving averages are rising. Bullish indication in MACD, Stochastic oscillator and RSI.
http://uk.stoxline.com/q_uk.php?s=cey

Anything below £2.00 should not even be regarded as a starting point!

Well said comments from the reasoned voice of Cowichan!

I'm in favour of this merger in principle, but I'd like Endeavour to improve their offer.
Centamin's management have been poor, and I'm confident that Endeavour's much superior team will do a far better job of exploiting the assets. Also, putting the two companies together will (almost automatically) result in a substantial increase in market cap, compared to their values considered separately. There is also the possibility of generating substantial cost savings (e.g. G&A).
I have to say I don't think the board will find that they have unqualified support from the institutional shareholders. They've done nothing to justify such faith in them. So it will be a question of Endeavour (or a rival) offering an acceptable price.

Have to agree with the boards decision on this.
Also as Kees Dekker pointed out this this is an opportunist and greatly undervalued bid by Endeaver who are desperate to achieve positive cash flow!
As I have said before there are far too many Centamin shares on issue which makes the company share price much easier to manipulate by using CFD positions such as Endeaver attempted yesterday!
Far too many CEY shares held in big CFD positions by those who are only interested in making a quick profit short term profit without any care for the future long term prospects of the company.
One must consider if Mark Morcombe during his time as Chief Operating Officer of Centamin was already a willing participant in the Endeaver strategy to get Centamin on the cheap?
Is Endeaver to be trusted by Centamin share holders, possibly not if this is an example of how they operate?
Still the outstanding court case to settle though either by a court verdict or the ratification of Law 32,(Some chance of the latter!).
Also as already pointed out EMRA will have to be consulted about any merger and I doubt they would want to take any less profit share.
As Dasut pointed out if this goes ahead despite what is being claimed the Centamin dividend policy is most likely to be far less generous.

We see today Gold rising fast towards USD1500oz and Silver has already broken through USD17oz which will please the Hochschild share holders among use.
I suppose we should have known previously it would not be long before we were shooting back up towards £1.60 a share, the offer today may have caught some of us out.

Sorry will continue ...after see my beloved Acacia mining fall to BARRICK once the bigger boys get involved there is little we can do, but we will see a substantial increase in value in my opinion.

I have owned a number of these shares for some years and seen the rises and falls. We certainly are trading low at the moment. The management have developed a Company here with no debt it is true but others have questioned the mine management. I regret after seeing my beloved ure

Contact IR now and voice your opinion. One way or another...

Personally I believe this offer was rightly declined. So far our board has acted wisely, as the potential shareholder returns have always lay in development of the incredible slate of deposits we already have.

If we are allowed to proceed without interference from a hostile merger we will see our share price appreciation rival the likes of Kirkland Lake Gold.

Thank you Centamin Board - please develop our great company without shareholder value destruction a merger would cause.

We know Endeavour and Barrick are both Canadian competitors with similar interests in Burkino Faso and Mali. I can also see if they went for Centamin they would be able to develop Egypt further and Mark Bristow (prev of Randgold fame) has the best reputation in the business for winning around Govts and in getting his way.
I feel this share price at these low levels still has a long way to go yet!! Keep your seat belts on for a hairy ride!!

Sorry, I should have said £348 in Debt...........Hmmmmmmmm

To be absolutely straight I have been out of CEY for some months now, waiting for a buy back in opportunity (sadly the summer SP rise caught me napping). But for what it's worth I looked on HL for the Endeavour SP on November 22nd (the Endeavour SP fix date). On that date each Endeavour share was CAD$23.6 at and exchange rate of £0.58 for one CAD. This pitches the offer price at £1.16/£1.16 for each CEY share. To get to say £1.50 per CEY share Endeavour would have to offer 0.1095 shares per CEY.

Also Endeavours last quarter report put them at CAD$348 in Debt...........Hmmmmmmmm

The 160sqkm beyond Sukari must also have great appeal. - Contiguous with Sukari and the cost-benefits associated with that and where development is already underway.