Centamin PLC Share Chat (CEY)

Thanks Tibbs, I obviously wouldn’t invest so heavily in them if I didn’t think they were good, as gold mining is a tough, and most often values destroying, business facing rising costs, political dangers, things going wrong physically in even the biggest mining companies, and worst gold out of fashion. Cey were unbelievable a while back posting output projection and then immediately a cut but stuff goes wrong. Even worse Kees suggests lower output is secular. What I don’t understand is why anyone would hold this if they thought the company management was lousy against all these headwinds and not sell and buy a rival miner, even if there is potential for the court case to be resolved, in effect following Kees advice. I am probably bonkers to believe in the company and hold. Hey ho. All best

mizolgit, could you please give more details of "The reason is Isa and not possible to profit from trading now(equal to gambling) these days" I think something has passed me by. Thanks

Pushme you could be a great PR man for Centamin!

Quite so Cowichan, you hit a few nails on the head there!
'Get on with the job indeed, in the Centamin constitution it states that the board is committed to share holder value, yet here we are down over 40%!

Quite so Pusmepullyou,
They were indeed doing well and achieved excellent output partly by "High grading"from the open pit.
I recall Kees Dekker referred this as 'Glossing over' the true state of affairs.
Shortly after Josef decided to take more of a back seat and sold vast amounts of shares which you may recall puzzled some share holders, although it turns out that his decision to sell was most fortuitous as in 2018 unexpected low grades were hit and the sole underground LHDR tried to self destruct having been run at it's limits for too long, unfortunately this couldn't have happened at a worse time , especially as the essential spare parts to repair it weren't on site or available any time soon!

Europe trades lower premarket, trade, Italy in focus

European equities traded lower in premarket on Wednesday with no sign of a trade agreement between China and the United States on the horizon. Earlier this week, US President Donald Trump warned that Washington is not ready to make a deal with Beijing yet, adding that American tariffs on Chinese goods "could go up very, very substantially, very easily."

Over on Wall Street, the Dow dropped over 200 points as the yield on the benchmark 10-year Treasury note fell to a 19-month low.

Meanwhile, concerns over Italy's growing deficit loomed amid reports the European Commission could take disciplinary steps against Rome over its debt.

The DAX sank 0.66% at 7:55 am CET, while the CAC 40 tumbled 0.92%. At the same time, the FTSE 100 lost 0.44% as the FTSE MIB fell 0.89%. The euro was up 0.04% against the dollar at 7:58 am CET, buying 1.1166 while the pound advanced 0.09% versus the greenback, going for 1.2665.

Breaking the News / JC

+ 0.30% + $4.78 $1284.23

High of the day unavailable

Well found Cowichan. Yes that turned out to be a good call, cey it turned out was undervalued in Dec, over the nest three months gold rose 10%, and cey its usual approx three times, so 30%. So if there was a buyback then would have been a least bad time . However I can reinvest my dividend in cey, or in something else, the choice is mine and I prefer that to buy backs. AMy way cey tumbled back as gold fell in the spring, so dec wouldn’t have been a good time for a share buyback.either. But great as usual that different members here have different views and needs.
Long term gold miners have way underperformed the gold price losing over 30 per cent over the past 10 years, compared with a 39 per cent gain for the largest gold-backed ETF. So overall buybacks wouldn’t have helped.investors, and lucky cey didn’t do it at double today’s price. Looking forward the challenge is that gold mining costs rise fast, and the miners have to find new gold so need a price hundreds of dollars more to do really well, while gold is currenty above its inflation linked price over the centuries . Worse miners are being the canary again just bow, presaging lower gold, we’ll see if they are right. The only good sign as when I am this gloomy.....
Good luck all

here's a comment you made on dec27, 2018

---------------------------------------->

Just to say I for one would not appreciate a share buy back as I consider Cey shares are worth more so they would be being bought back on the cheap
I don’t think it is managements responsibility to support the share price or otherwise, but their job is to make profits, pay dividends and plan a future where they can increase both, then the market can decide on the short term share price, but if management get the above right in the long term the share price will rise.
I appreciate the profits being returned to us in great dividends if less this year.
So please management don’t start peeing out rns’s of start buybacks but get in with the job, thanks

---------------------------------------->

that first bit about you thinking 'the shares are worth more and management would be buying them back on the cheap' is precisely WHY they should buy them back NOW and not after the shares rise...

Therein lies the misunderstanding between you and anyone who thinks along those lines

The new shares for bonuses are around 0.1% of existing shares so hardly significant They are for a year when Centamin was doing well

If the institutional investors do not challenge,then I am afraid you are all going to get very frustrated and waste your mental energy
The only other solution is sell.
I will not sell.
The reason is Isa and not possible to profit from trading now(equal to gambling) these days Not like years ago.
GLA its going to test all.

Ah, good old share dilution.

Another reason we need a share buyback program.

Far, far too many shares outstanding.

Centamin plc has published the following regulatory news announcement:
28 May 2019
Ordinary Share Listing Application
To read the announcement, go to:
https://www.centamin.com/investors/regulatory-news

Referring to disclosures set out in this year’s annual report,.I should add that whilst these outline why the shares have been issued in the statement made this morning, I would suggest that everyone review the remuneration report found within the annual report as it provides a fuller picture of the awards made and the policy.

Page 120

Page 120
The PSP awards granted to Andrew Pardey and Ross Jerrard in June 2016 are capable of vesting in June 2019. Of the blend of TSR, reserve replacement, EBITDA and production
targets measured up to the end of the 2018 financial year, 40% of the award will vest due to the TSR and EBITDA targets being achieved in full. Full details of the vesting criteria and the vesting outcome are set out on page 134. Josef El-Raghy does not hold any PSP awards

On a more positive note in sterling gold is within 1% of its 5 year high, and within about 10% of its all time high. Of course for miners that does not take account of how much costs have risen especially in dollars compared to sterling, so need a higher gold price for same profit and share price, but gold itself still holding value for us. UNCERTAIN how is it doing in terms of your multi currency diaplogs or whatever you called it?
As regards the CEY price move late last week I think others are right, many gold miners have been weakening n the last few weeks on reports from some of rising costs, and the shares also falling as price gold to fall. Cey is I think playing catch up after being surprisingly resilient.
Finally TIGER thanks for being so nice (as usual) about my granny’s first cousin.

Europe higher premarket, EU elections, data in focus

European stocks were in the green on Tuesday during the premarket trade as investors digested the ninth overall elections to the European Parliament. The elections were marked by a stronger turnout, as well as the weakening of the traditional center-right and center-left groups, the European People's Party (EPP) and the Progressive Alliance of Socialists and Democrats (S&D) while Eurosceptic parties posted strong results in the UK, Italy, Poland and Hungary. Market watchers also focused on a string of economic data due for release later today. Brexit remained in the spotlight.

In Germany, the DAX added 0.28% at 7:51 am CET while the French CAC 40 gained 0.28% at the same time. In the meantime, London's FTSE 100 rose 0.42%.

The euro was down 0.05% against the US dollar to go for 1.1186 at 7:56 am CET.

Breaking the News / VK

- 0.13% - ‘1.87 $1283.27

High of the day $1286.86

thank you goldgnome for that most excellent summary — the picture you paint is one of a very lucky country indeed

now if I could just answer your question regarding Centamin — but heaven only knows why our share price moves

cheers :-)

Interesting questions C.

Normally in Oz elections the incumbent party has all the policies as they have done a medicore job, not fullfilled all the promises (etc) they made last time (so lets forget those and we will have some new ones to focus on) and the opposition party has less of a policy platform. In this case the Opposition came out with a pethora of policies grabbing most of the oxygen in the policy space and the Liberal Party had virtually none and simply attacked Labors weakest links..the Opposition Leader .... and economic policies that they either did not cost out (playing into the hands of the Liberals who are always seen as beng better economic managers) or the Opposition leader did not know enough about himself?! Franking credits, negative gearing, environmental policies (including the Adani mine) were all in the deadly cocktail...but the Opposition Leader was always seen in the polls as the least preferred leader...to many he seemed to be more about his political career and destiny than about the voters, but thats another story.

The Journalists have to sell newspapers or media time and so they tend to jump onto any popular theme, which need not be well thought out. The govt looks like delivering a surplus (first for a ong time), unemployment down, weakening dollar good for mining and agric, housing prices falling (good thing for the youth) and a host of other positives

interest rates are staying low or going lower...

population is growing strongly, albeit a little slower than before. Australia’s population grew by 390,500 people or 1.6% during the year ended June 30, 2018. Plus, natural increase and net overseas migration contributed 39.4% and 60.6% respectively to total population growth for the year ended June 30, 2018

very strong infrastructure investment pipeline, mainly coming from state governments.

Our mining sector is on the improve, assisted by our falling Australian Dollar and increasing mineral prices. This means the big economic drag we have seen from the downturn of the mining sector over the last five years or so from falling mining investment is starting to fade.

The agricultural sector on the improve, and if we play our cards right, we could become the Asian food bowl.

Tourism is booming.

International student education is continuing to be a huge ‘export industry’ for us, up 17% on last year...sand this isa big industry for us ...

So a recession? its overdue, but not in sight in my view...

Why has the CEY price dropped so much in the last 24 hours?

best
the gnome

If shares are undervalued and profits rising fast them buyback can make sense as Kirkland. However if shares are fair value (as cey’s forward pe would suggest) then there is little advantage other than for tax. In UK where many of us hold in Isas, tax free dividends can be more advantageous. Outside the isa I sell cey before divi day and buy it back, to pay cgt. In the USA tax regime buybacks can male greater sense. It also makes most sense for boards who are rewarded according to the share price, often at our expense, which is partly why so many in USA. So Cey board I, as others have written on this bulletin board, prefer the dividend. Just to say there are two views. Thanks.

Ps from investopedia: many investors applaud share buybacks because they see increasing EPS as a surefire approach to raising share value.But don't be fooled. Contrary to popular wisdom (and, in many cases, the wisdom of company boards), increasing EPS doesn't increase fundamental value. Companies have to spend cash to purchase the shares; investors, in turn, adjust their valuations to reflect the reductions in both cash and shares. The result, sooner or later, is a canceling out of any earnings-per-share impact. In other words, lower cash earnings divided between fewer shares will produce no net change to earnings per share.

Of course, plenty of excitement gets generated by the announcement of a major buyback as the prospect of even a short-lived EPS rise can gives share prices a pop-up. But unless the buyback is wise, the only gains go to those investors who sell their shares on the news. There is little, if any, benefit for long-term shareholder

read this & then tell me how stupid well managed and profitable companies are for buying back their shares...

------------------------------------------------>

Tony Makuch, President and CEO, commented: “Kirkland Lake Gold has established a solid track record for creating shareholder value, with our share price increasing over 500% since the beginning of 2017.

The keys to achieving superior returns have been strong operating results, industry-leading earnings and cash flow generation and growth, ongoing exploration success, and a commitment to directly rewarding shareholders for their commitment to our company. We introduced a quarterly dividend in March 2017 and have since increased it four times.

In May 2017, we launched an NCIB program and, since that time, have repurchased over seven million shares. The NCIB is an important component of our value creation strategy as the repurchase of shares provides a permanent favourable impact to earnings and cash flow per share metrics.

Given the significant potential upside we see in our current share price, based on our expectation for continued strong operating and financial results, as well as the substantial exploration potential we have at Fosterville, Macassa and other targets, we plan to use the NCIB over the next year to support continued value creation.”

------------------------------------------------------------->

TORONTO, May 27, 2019 (GLOBE NEWSWIRE) -- Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) is pleased to announce that it has received acceptance from the Toronto Stock Exchange (the “TSX”) to renew its normal course issuer bid (“NCIB”). The NCIB allows Kirkland Lake Gold to purchase up to 20,989,692 common shares of the Company (the “Shares”), representing 10% of the current issued and outstanding Shares in the public float as of May 22, 2019. As at May 22, 2019, the Company had 210,011,669 Shares issued and outstanding.

https://www.klgold.com/news-and-media/news-releases/press-release-details/2019/Kirkland-Lake-Gold-Renews-Normal-Course-Issuer-Bid/default.aspx

goldgnome --> it has been fascinating to watch the run up to the elections Down Under. I wonder was it opposition to the Adani mine that killed Shorten's chances or those those troublesome franking credits?

Also, in your view is Australia really staring down a recession? The media drummers seem to be banging louder about it every day!

Quite so. although an endangered species is priceless and can never be replaced once it is lost.

I have to say that I agree entirely with the environmentalists on this one , keep the Black Throated Finch, forget the mine!

I would certainly not sleep easy if I was invested in a mine that was responsible for killing off a species

Getting excited about delays to mining projects...we can even laugh about it and write about it ....
HARDLY a week goes by without a planned mining project experiencing a capital cost overrun, a significant delay, or both.
..and then there is the black throated finch
https://www.abc.net.au/news/2019-05-03/adani-mine-environment-approval-black-throated-finch/11075824

the gnome ...

Europe set to open higher after EU parliamentary elections

Major stock markets in Europe were trading higher premarket on Monday following the conclusion of the elections for the European Parliament which saw the centrist parties lose support as voters turned towards their more conservative or liberal rivals. Meanwhile, Fiat Chrysler submitted a proposal for a merger with Renault.

The FTSE 100 in London was closed for a public holiday, while the DAX increased 0.49%. At the same time, the CAC 40 grew 0.47%.

The euro was almost flat, rising 0.03% to $1.12084 at 8:06 am CET. Concurrently, the British pound gained 0.21% against the dollar, to change hands for $1.27394.

Breaking the News / MD

+ 0.07% + $1.00 $1285.90

High of the day $1287.45