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Major indexes in Europe traded mixed in the premarket on Wednesday, with the Ukraine crisis in focus after Russia completed its military exercises with Belarus yesterday, and Western leaders continued to comment on the situation. Before the open, investors will be awaiting UK inflation and producer prices data.
The DAX gained 0.20% at 8:10 am CET, while the CAC 40 added 0.36%, and the FTSE 100 declined 0.09%.
The euro improved by 0.08% against the dollar at 8:09 am CET, selling for $1.13670. In comparison, the pound grew by 0.15% to go for $1.35567 a minute later.
Baha Breaking the News (BBN) / JGA
‘2022 output hike’ Cey’s next known catalyst for a rise in the share price, but are there any unknown positive surprises imminent?
In his negotiations with the Egyptian government on new mining regulations, will Martin Horgan slip a deal on the now ageing court case saga into the mix?
Happy hump y’al
Reimagining money, banks and our economy for the well being of people, communities and our planet
The campaign for a money and banking system that enables a fair, sustainable and democratic economy.
https://positivemoney.org/
As the coronavirus pandemic recedes in the advanced economies, their central banks increasingly resemble the proverbial ass who, equally hungry and thirsty, succumbs to both hunger and thirst because it could not choose between hay and water. Torn between inflationary jitters and fear of deflation, policymakers are taking a potentially costly wait-and-see approach. Only a progressive rethink of their tools and aims can help them play a socially useful post-pandemic role.
Instead of ending QE, the money it produces should be diverted away from commercial banks and their corporate clients (which have spent most of the money on share buybacks). This money should fund a basic income and the green transition (via public investment banks like the World Bank and the European Investment Bank). And this form of QE will not prove inflationary if the basic income of the upper middle class and above is taxed more heavily, and if green investment begins to produce the green energy and goods that humanity needs. Central banks are not constrained to choose between paralysis and contraction. A progressive monetary policy would lift interest rates while investing the fruit of the money tree in climate action and reducing inequality. If it helps to sell the policy, call it “sustainable monetary tightening.”
https://www.project-syndicate.org/commentary/progressive-recipe-for-monetary-policy-tightening-by-yanis-varoufakis-2021-10?barrier=accesspaylog
Quite so 3bear,
It is also worth bearing in mind the previous management were guilty of becoming over dependant upon bought in sub contractor services,possibly because they lacked the relevant required professional knowledge to instigate and oversee the operations/processes themselves and by what is now apparent the commitment or interest in ensuring long term sustainable guidance output.
By contrast Martin Horgan and his new management team have a proven track record and the relevant professional skills to instigate and oversee the required specialist services in the most efficient manner in order to achieve their stated ambition of safe and sustainable long term guidance for the forceable future at Sukari.
The advantages and what is being already being achieved by the new company strategy will gradually become more apparent as updates are delivered and 2022 progresses which should both reassure the market and stimulate a rising share price to more appropriate levels.
Hi Mr T - I agree entirely with you, to the point I was genuinely surprised to learn that such a key operation could be handed off to a third party contractor in the first place. But then I know nowt about mining. The market is impatient - all it sees is the AISC going through the roof. What it doesn't see is Horgan getting all the fundamentals sorted. Pain now will pay out big time in the short to medium term is my belief. This is why I'm overweight. And I'm not talking donuts.
I've heard so many money men,give interviews recently.
Every single one of them, criticises the Fed and all central banks, who printed money, to keep economies going.
Not one Considers, what would have happen during the lockdowns, without it and other simulas packages like the cheques given out in the USA and the furlong schemes and selfemployed support in the UK.
Hi Tibbs
What a succinct evaluation . In my experience (albeit in a different industry) sub contract exposure was limited to short term contracts whereas long term such as Sukari would undoubtedly benefit from "in house " exploitation. I take much confidence in Hogans management so far and his now more public and Investor oriented visibility. Softly softly catchee monkey.
Regards
Bob
Here is another take on the stupidity of the markets and the money men...from Ray D
It seems to me that people who received a lot of money and credit and felt richer, central bankers and central government officials who created a lot of money and credit and said that it wouldn’t create a lot of inflation, and people who believed what these officials said would all do well to review the lessons from history.
More specifically, this time around (i.e., since early April 2020) central banks (most importantly the Fed) and central governments (most importantly the US government) gave people, organizations, and state and local governments a huge amount of money and credit, and now most everyone is surprised that there is a lot of inflation.
What is wrong with these people’s thinking? Where is the understanding of history and the common sense about the quantity of money and credit and the amount of inflation?
Indeed whats is wrong with these people?
https://www.linkedin.com/pulse/where-we-big-cycle-money-credit-debt-economic-activity-ray-dalio/
If you dont believe Ray in 2022 try 1852, the EXTRAORDINARY POPULAR DELUSIONS AND THE Madness of Crowds.
Part of the human condition. The trouble is with the people who read the true history and recognise the madness and delusions for what they are worth ...
"This time it won't end in tears" etc "Things always go up" "Bubbles dont burst"
the gnome
Hi 3bear,
I apologise for butting in but re your question regarding current share price weakness, on the contrary if done properly and as proposed then taking services in house will have exactly the opposite effect .
The opinion of a highly experienced and respected mining analyst-
Using contractors for mining is almost always a bad idea. Only when there is a short term mining project such as the pushback at the open pit there, you could argue to use contractors. It is not worthwhile and efficient to equip and staff up for such a project.
When you have a longer term mining project you should use an owner miner approach for the following reasons:
- Mining is the core activity of any mining business. If you outsource this activity you never build up an in-house expertise. It would be similar for an information business to outsource design of information system and programming activities.
- It is more expensive as the contractor will build-in a profit margin. Should they miscalculate and go under, you will have to take over at short notice, which results in a shamble, loss of revenue, appointing another contractor which knows it has you by the balls, or you have to equip and staff up quickly, which in practice is impossible!
There is a general loss of control in directing mining activities when having to work through another party.
Should be a good 1st quarter given that 20k oz was carried over from last year. Gold price is up which goes straight into the cash register for no extra work.
Egypt International Mining Show
530 followers
5h • 5 hours ago
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We are excited to Welcome Centamin PLC as Featured Gold Sponsor for 3rd Egypt International Mining Show - Virtual Connect 2022.
Centamin's principal asset, the Sukari Gold Mine, is a long-life, bulk tonnage open pit and underground operation. It began production in 2009 and is the first large scale modern gold mine in Egypt, as well as one of the world’s largest producing mines, forecast to produce in excess of 400,000 ounces per annum with a 12 year life of mine. The Company’s solid financial position, strong cash flows and development and operating experience provide us with a significant advantage in acquiring and developing other gold projects. We recognise our responsibility to not only deliver operational and financial performance but to create lasting mutual benefit for our stakeholders through good corporate citizenship. Website:- https://www.centamin.com/
Register here:- https://bit.ly/3qauUcp
Martin Horgan | Emilie Hodson | Howard Bills | Alexandra Barter-Carse | Amr Hassouna | Ross Jerrard
------------------------->>>>
It seemed so odd they never participated before - wonder what has changed?
Mr T I was suggesting that the big thing that would make Centamin come good is a higher gold price, rather than improvements in its output and costs which are rather limited. I was also suggesting that the rises because of events like Ukrine are often short lived and that I hoped this time the rise was partly because of economic events which we all believe should drive gold higher and might finally be beginning to do so. We shall see if indeed this gold pullback is temporary. Of course I am also sure that most of us would prefer a much better economy that didn’t raise gold, but most of us see the terrible economic situation that should at sometime make our insurance policy payoff
Russian army returning to barracks apparently which is great news for us all. Pog obviously retreating too but I'd rather not profit from war anyway. Centamin will come good on its own back given time.
I didn't know the Sun has developed some kind of mind readnig machine that can read Putin's mind lol
I have no idea why it goes up as the same percentage as gold when increasing in price yet falls at 3:1 ratio whatever gold price retreat does. Perhaps its a rush to sell by those who bought on the way up, but everybody tries to fit through the exit door at once.
According to the latest reports of British media, Russia is to attack Ukraine on the night of Tuesday to Wednesday, reported the tabloid 'The Sun'. Sources close to US intelligence say up to 200,000 people could participate in the invasion. Russian soldiers.
Tony do you think current share price weakness is linked to the decision of taking underground ops in house? Cannot understand why cey so cheap at the minute - if I had any money left I'd buy more and get my average down from 94 which is already super cheap in my view
I expect the world will change on April 20th when Centamin release their Q1, 2022 report, provided the company has managed to increase production as previously forecast.
Centamin having been pulling in the dosh and producing more by all accounts. This should be at least 100p. We have been done over just as the girls say in the Little Mix breakup song.
Hi Sotolo,
I'm sure we all agree that its by far preferable that Centamin will come good out of it's performance rather than because there is a risk of a nuclear war in Europe.
We have friends in Germany and its widely known across Europe that UK Governments ministers have been regarded as a joke by the Russians in the Ukraine negotiations, however the Russians do treat the German representatives with great respect and take their views seriously.
It was always going to be a case of wishful thinking on the part of those that popped in here hoping for a sudden meteoric share rise, but then had they obviously hadn't realised the severity of the loss of market confidence that the behavior of the previous management had brought about.
The BOD realise they are in "The Last Chance saloon" and Martin Horgan in many respects has Carte blanche" in order to turn things around and to be fair so far as the available news suggests he appears to be doing just that, look at Cowichans post ,some remarkable and measurable progress has been made at Sukari in the clean up operation which so far is well ahead of schedule!
Thinking back the reasoning for Centamin to embark on so many projects outside of Egypt in most respects is no longer valid, in fact quite the contrary would seem to be the sensible and certainly less risky option to follow now and for the foreseeable future.
I wonder if any of our short term traders had bothered to buy any Shoe Zone (SHOE)aim market
Just over a year ago?
Last year I was sitting in a pub in our otherwise run run down town center opposite one of their stores ,I noticed just how busy they were and the flow of shoppers was pretty constant, I watched the shop on several other occasions before deciding to go in.
Whilst trying on some £6.99 deck shoes I asked the assistant is she had been busy, she replied that they were always busy everyday, I bought two pairs of deck shoes for £10 and left.
Next day I bought in @61p and sold around a year later at £1.52.
Just luck maybe, or possibly taking the trouble to do some on the ground research helped?
Quite agree Steve, but then Americas presidents are really chosen and controlled by the shadows behind the closed doors, those with all the vested interests and money in keeping things the way the are which will ultimately destroy our planet.
So now they got Biden lol
I didn't want either Clinton or Trump , neither were fit for office,certainly the latter has proven that!
interesting call wildtiger. The USD money supply expands without limits. It floats on trust, which must surely be in short supply. If you think trust is well founded read on, and watch the disgraceful revelations now hitting the street in the US
The latest from the US about their former leaders ...
The 2016 Hillary Clinton campaign’s bogus Steele dossier of allegations against Donald Trump deserves its infamy in the annals of political abuses. But if a Friday filing by Justice Department special counsel John Durham is accurate, the creation of yet another Clinton-backed bundle of deceptions was no less appalling.
To sum up the special counsel’s argument in this case, an appalling abuse of private and public resources to gather dirt on Donald Trump did not turn up any dirt. So the alleged perpetrators just pretended they had found something significant and tried to persuade federal agencies that Mr. Trump had disturbing connections to Russians. Mr. Sussmann maintains that he is not guilty and deserves the presumption of innocence just like everybody else.
As for the political campaign that was paying the bills, was there anything that Hillary Clinton would not do to her 2016 opponent?
More at ...
https://www.wsj.com/articles/hillary-clintons-other-dossier-11644852226?mod=trending_now_opn_4
You trust the US Govt? Many wouldn't. Good luck
https://www.washingtonpost.com/world/2022/02/01/what-is-nato-treaty-article-five-russia-ukraine/
the gnome
Depends how much of the gold price is because of being a safe haven and Ukraine, and how much is beginning to catch up with increasingly negative real interest rates: if the latter the pullback may be short lived IMHO
Unfortunately gold is no longer the best safe-heaven asset, I personally rather hold US dollars than gold as a hedge.