Centamin PLC Share Chat (CEY)

Dasut
In an earlier post it was suggested that the permit delay may be as a result of talks with Emra about Sukari being used by a third party for processing
I was just speculating as to whether this was viable in transporting the ore..I have no idea on the other blocks near to Sukari and any distance 50 miles was just a number

Autonomy1 My question is what are they transporting 50 miles and if it refers to ore then how is the ore transported because the cost would be prohibitive that is why a processing plant and pit/resource are designed together so that travel distances are minimised?
Clarity Rebess doesn't worry me because the new terms differ from Centamin's terms so this is what needs to be clarified, if Centamin are to use existing resources. Also if the court case isn't involved in the clarification discussions I would be surprised and disappointed.

Hi Autonomy1,
Your points are valid, specifically regarding those that are primarily interested risk and fast reward, or loss as the case maybe with so many day traders and those who have become addicted and prisoners in their seats on the up and down merry go round of leveraged CFD type of trading.
This is very apparent reading some of the posts of member's on some of the other forums who seem to think that the movement of Centamin's share price is predictable and will conform with usual trading patterns, as long termers well know it never has and most probably never will!
But they are traders and most can never be bothered to try understand Centamin or any company they buy into, true they may enjoy some success , but this is usually by luck as far as Centamin goes rather than successful trading tactics!
Most of us are long term holders have learnt that Centamin is a contrarian share and expecting it to perform to usual trading patterns is pointless for so many known and as yet unknown influencing factor's, not least of which is the culture and politics of the country in which it operates.
Mark Bell quite rightly stated with regard to Centamin that patience, patience and even more patience is needed!

Feb 7

The Minister of Petroleum and Mineral Resources, Tarek El Molla, received the mining committee delegation of the American Chamber of Commerce in Egypt (AmCham), which was recently formed for the first time in the Chamber’s history.

During the meeting, El Molla praised the mining committee which includes many experts similar to that of the oil and gas AmCham Committee. He also affirmed that the coordination with the mining committee will support investments in the mining field, especially in reviewing the available investments to attract major US mining companies.

Additionally, El Molla reviewed the current measures being implemented to develop the Egyptian mining sector in order to increase its contribution in gross domestic product and maximize the added value of Egypt’s mineral resources. This will happen by digitizing the available geological data. He also expressed his aspiration to provide young workers with training opportunities in cooperation with the AmCham in the technical and practical field.

For their part, the committee members emphasized that the mining sector development is very noticeable, highlighting the committee’s objectives to review international best practices in mining and to attract major US companies to invest in Egypt.

The meeting was attended by Alaa Khashab, Deputy Minister for Mineral Resources, and Osama Farouk, Chairman of the Egyptian Mineral Resources Authority (EMRA).

https://egyptoil-gas.com/news/el-molla-receives-newly-formed-amcham-mining-committee/

Tibbs I would suggest Centamin are very happy with additional mining companies entering the Egyptian mining scene. The Altus maps are interesting especially as I notice Newmont Exploration is involved.
I don't think it will be overly long before we see the formation of a Chamber of Mines made up of all of the companies involved, plus associate members such as supply line organisations then the Egyptian officialdom will have a force to reckon with.

I suspect it is to do with that 15m off the book trade that we discussed yesterday

Any thoughts on the RNS.

Well done #Sukari team for smashing drilling metres productivity records, blast hole fleet up 37,114.3m to 196,351.1m, whole fleet up 34,600.5m to 208,067.7m. Also hit the most productive drilling day, blast hole fleet up 282m to 7,536m, whole fleet, up 381.3m to 8,228.2m. #CAPD

https://twitter.com/_CapitalLimited/status/1358947443149139968

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My Thoughts: apparently the new bus driver knows how to use his horn...

MrTibbles
I looked up the other day how long ig would take to build a mine that produces gold and its between 15 and 20 yrs so in one respect you are right about these little exploration companies,although that is no different to ourselves,will we ever produce gold from our Africa mines I doubt it
It would also seem investors want risk and reward quickly instead of profit,dividend etc,and that's probably one reason the share price is low because investors are buying Greatland or Orusur where you get a 10 bagger in a matter of months and then sell and move on

Hope not, but I have an awful feeling that the clarity-issue could well result in a long-wait, a very long wait. - Too much history attached to Centamin and the Government when it comes to such matters. - When Tibbs highlighted 'Clarity', my heart sunk.

@ Autonomy1 I think logical doesn't seem to be the order of of the day unfortunately.

Hi Tibbs - Oft times, in the history of mining companies, the SP reaches a peak on the basis of expectations rather than actual results. - The skill/reward is in the timing.

MrT,
Great research on the Block caving mining methods, im learning more and more each day.
With reference to your coment on CEY share price it realy seems the drop from 230s down to 110 is just ludicrouse and the MMs are realy tekin the pee, but it will come back in time.

Centamin is the only mining company in Eygpt that is actually producing a very respectable amount of gold making an excellent profit in spite of a generous profit share and over $300 million in the coffers with no debt, yet the SP is scraping along the bottom!

So I wonder just putting aside the usual hurdles of running a foriegn business in Eygpt and considering the initial investment and CAPEX needed to get mines started and established whilst taking into account how many years it may take to actually start producing any gold, I wonder what the share price of these new companies will be and who would be tempted to invest in them?

Surely the plant can only run at a certain capacity,and how viable would it be for other companies to transport it perhaps 50 miles sway
Surely the logical explanation is to award Cey the ones closest to Sukari

I would like to know as much as everyone else, frustrating to say the least!

Although wonder whatever happened with the SCC , they went away to reconsider Law 32 how many tears ago now?

I think some of these new mining companies are in for a bit of a shock when it comes to dealing with the Egyptian officialdom!

It will probably be many decades before they start producing any gold, if ever!

Clarity: - Just a punt. - I wouldn't be surprised if it has something to do with using Sukari assets in connection with the development of the new concessions. - The plant at Sukari is the property of EMRA and whilst this will not in any way affect the existing contract, there may be problems outside of this. - Just speculating.

Thanks Tibbs - That's an odd word 'clarity' isn't it? - So, something isn't clear about the concessions they have apparently secured. - Hmmmm. - I wonder what that can be. - I think we've been here before. - It's a bit like the court-case. - Lacking clarity.

Official response this pm -
Centamin are still awaiting clarity re the license awards!

Centamin response-
Block caving was looked at for the underground mining, at the very beginning prior to mining Sukari.
The challenge is the lack of uniform grade across the ore bodies, and the big challenge with block caving is dilution.
The method chosen at Sukari (cut and fill) is the best at maximizing returns through volume and grade.

This has been an interesting occurrence for a few days as everyone is starting to get frustrated as to when/if Biden will actually get his stimuli through. However it is now reported he just needs a simple senate majority to do so. So once approved it will become very interesting we should rise up quite strongly but this market and the activity in is is very strange.
Inflation will rise with the stimuli and what is the markets hedge - Gold!! Fingers crossed.

From a mining consultant
Block caving requires a massive amount of development BEFORE starting mining, after which it will become very difficult to change approach.
Block caving is a very specialised mining methods and relatively rarely used for a host of reasons. Usually a company needs to extensively train its employees as the skills are not generally available. The authors of this valuation report have no personal experience with the mining method and had to extensively draw from documentation on the internet, the most important being:
• Underground Block Caving: A Guide for Investors at: https://investingnews.com/daily/ resource-investing/underground-block-caving-guide-investors-open-pit-mining-rio-tinto- codelco-freeport-grasberg-chuquicamata/
• Design & Operating Principles in Caving Methods (V.N. Kazakidis): http://cosmo.mcgill.ca/wp-content/uploads/2015/06/Vassilios-Kazakidis-Design-Opertaing-Principles-in-Caving-Methods-compressed.pdf
• Open Pt or Block Caving? A Numerical Ranking Method for Selection (F Rashidi-Nejad et al): https://www.researchgate.net/publication/269397396_Open_pit_or_block_caving_A_numerical_ranking_method_for_selection
Block Caving is the only mining method that would be potentially economical for Alpala. At the very low average grade the deposit can only be economical by using a very low-cost mining method such as open pit mining. However, the depth at which the better grade blocks are located, starting at around 600 m below surface makes open pit mining unattractive with the huge amount of material needing mining before better grades are fed to the plant. For this reason block caving was chosen as it has the same level of productivity as open pit mining and is a very low-cost method. The low operating cost comes however at the price of very high initial investment on primary development and infrastructure and with a much longer development and ramp-up period, typically between 15 and 20 years, than open pit mining.
• There are however a number of major pre-requisites for successful block caving, being:
o A deposit with large dimensions in all directions.
o Suitable geotechnical characteristics of the deposit and surrounding rock. This information was not available at the time the PEA study was undertaken. Assuming block caving will be appropriate and technically possible is a large leap of faith. Mining Plus even observed ”this study recognises the existence of some areas of poor ground and which will be identified in greater detail in further geotechnical testwork”.
o Block caving operations must be away from inhabited centres as they create significant risks for water resources, infrastructure, buildings and human lives due to ground subsidence.
o Being in a low precipitation area and with rock conditions that do not cause great influxes of ground water.

I have looked at the Altus maps but to me they are just blocks and I dont know if they were the ones Cey were after and didnt get or are there others Perhaps Siko can shed some light on it

Click todays news 9th Feb 2021 for information on permits.

https://www.altus-strategies.com/news/

Altus today posting information covering the permits awarded and the areas/maps involved. - Comprehensive information that we appear to be still waiting on. - I wonder why we are being kept in the dark?