Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Ash11 - looks like you get the cigar..
First of all here is hoping for a better New Year for all.
Kees Decker is so right in many of his points relating to Centamin albeit don't agree with his comments relating to Doropo which in my opinion looks to be an excellent low cost long term prospect.
Also not sure of the rationale behind falling behind with waste clearance causing a pit wall failure because as far as I am aware there was no failure and the fissure was actually found in a waste area scheduled to be cleared.
He might well be right that the face/pit wall was unstable due to incorrect mining practices but I haven't seen any information saying it was a result of chasing ounces.
Agreed that the unstable wall highlighted the lack of flexibility of the mine due to chasing ounces as they basically had nowhere else to go to maintain production. As has been said an unstable area is nothing unusual and shouldn't necessitate a profit warning so yes seriously bad mine management. What is worse nobody took ownership of the problems that would inevitably come back to bite us all.
Let us all look forward to a positive year end performance with an exceptional fourth quarter and steady increasing gold price.
I am in total agreement with Kees Dekker.
There have been too many "Red Herrings".
The need is too keep your eye on the ball, distractions costing many millions, are not needed.
A well respected analyst opinion-
The stand out comments are:
- mineral reserves increasing by 1.0 Moz net of depletion.
This means they have added 2 years of mine life.
- much of the increase seems to come from underground sources, which are in my opinion the highest cash flow yielding ounces.
- this explains why the company wants to increase underground capacity
- they are cutting down on cash cost, yet this does not seem to be at the expense of targets set, which include:
- further reserves expansion
- in particular from underground.
As you know, I do not rate Doropo and find this a minor consideration.
> As I pointed out in my original notes, Centamin management fell behind with waste stripping which ultimately resulted in the pit wall failure.
Current management is now fixing that having appointed a mining contractor for the extra stripping. The company is going through short term hardship, but will be rewarded in the next few years.
I agree with your investor friends sentiments on Burkina Faso projects, but am not that positive about Doropo.
At the indicated grade, it is not really a dripping roast. It may well be given the go-ahead, but will not add substantial to company value.
Rather invest in near mine exploration!.
Turning any discoveries there to account will be much easier and cheaper.
Of course the single asset nature is a draw-back and makes Centamin more risky.
This has however been the case for years on end and did not dissuade some from investing.
Investors will have to weight this against the improving prospects which the market does not seem to have discounted yet.
It is is investors call, but in my opinion Centamin now compares well to others as their know their problems are now known, with others you will still have to find out!
Kees D.
Make or break year for Martin Horgan, to state the obvious. Pull your hands out of your pocket,
"buy a few shares, and stop strategising, or blaming others" and ...
start producing real value for share holders!
the gnome
I think I said just before Christmas that 2 buys a fortnight or so apart by Martin Horgan would be a good thing and give the shares a boost. Im hoping he will put his hands in his pockets very soon.
Yes, he needs to buy- good push on gold now, here's hoping in continues.
As said in my post I disagree with JPM too and take their call of 1520 as a bullish sign, so entirely agree with both of you but hope we three are right! HNY
Material buy by Hogan is required. He still only owns 45,000 shares !
Mark Bankes may not have a crystal ball on the gold price in 2022 but he’s bound to have the inside track on Centamin.
I am out of time, but do NOT take your eye off of ESG in the New Year. Money is watching ESG performance, and CEY is in a good place.
To read more about the unhappy saga in the Iron Ore business in Oz
https://www.australianbookreview.com.au/abr-online/current-issue/969-november-2021-no-437/8491-stephen-bennetts-reviews-title-fight-how-the-yindjibarndi-battled-and-defeated-a-mining-giant-by-paul-cleary
https://www.ashurst.com/en/news-and-insights/insights/high-court-dismisses-fmgs-special-leave-application-in-yindjibarndi-proceedings
good luck punters and investors, but do not forget ESG matters
the gnome.
Shares on the major stock market indexes in Europe traded mixed in the premarket on Friday, ahead of the year's final trading session.
The spread of the Omicron variant of the coronavirus was in the traders' focus, as they monitored the rapid expansion of the allegedly more transmissible strain both across the continent and overseas.
The CAC 40 was down by 0.39% at 8:00 am CET, while the FTSE 100 advanced by 0.12% at 8:04 am CET.
The euro and the pound were flat versus the dollar at 8:08 am CET, selling for 1.13164 and 1.35024, respectively.
Baha Breaking the News (BBN) / BU
Happy Friday/New Year y’al
1/2 trading day today in the U.K.
29,000 CEY shares
£0.8728
...
However, obtaining a licence for exploring and mining these tenements involved conducting heritage surveys and making Indigenous land use agreements with the prescribed body corporates of the native title rights holders. In the case of FMG’s tenements on Yindjibarndi Country – some of its most lucrative in terms of projected iron ore – this involved negotiating with the Yindjibarndi Aboriginal Corporation (YAC). Enter Woodley, a lore man who had left school in grade six, later worked for Rio Tinto, and had become YAC’s chief executive.
The machinations of the mining company to obtain the necessary land use agreements to proceed with its Solomon Hub are as hard-edged as you would expect from any company eyeballing an asset worth around $US5 billion in revenue per year.
Yindjibarndi Aboriginal Corporation chief executive Michael Woodley.
Yindjibarndi Aboriginal Corporation chief executive Michael Woodley.CREDIT:JUSTIN MCMANUS
An early working relationship between YAC and FMG is abandoned when the mining company bulldozes a sacred freshwater spring after assuring traditional owners the site would be protected. When YAC demands a stronger heritage agreement, FMG begins to manoeuvre through provisions of the Native Title Act that effectively enable the company to gain access to land despite the objections of traditional owners. The shortcomings of the act are exposed early in the account and reiterated throughout.
Tensions rise again when YAC asserts a human rights-based approach to a new negotiation protocol it proposes to FMG in 2007. FMG then finances the establishment of a competing traditional owner corporation to the YAC, which in some instances had the effect of effectively pitting family members against one another. FMG subsequently backs the second Yindjibarndi traditional owner group – the Wirlu-murra Yindjibarndi Aboriginal Corporation (WMYAC) – to replace YAC as the organisation responsible for settling land use agreements with the company.
Working through the WMYAC, FMG orchestrates a seriously compromised members’ vote to replace the YAC executive, handing out $400 shopping vouchers and sitting fees.
Of course, none of this chicanery and the non-disclosure clauses that surround it would shock anyone who has, over the past year, followed the hearings of the parliamentary inquiry into the destruction of Juukan Gorge. That committee heard numerous submissions of a similar nature, including one in October last year from the Wintawari Guruma Aboriginal Corporation that alleged FMG was withholding $1.9 million in royalty payments to the Eastern Guruma people until the traditional owners agreed to the company’s request for nine mining leases.
...to be conitnued
chpt 2
...they kept calling me ‘uncle’. I’ve done a silly thing,” he told journalists.
When asked for comment on this account of events, Fortescue’s current chief executive, Elizabeth Gaines, who joined FMG in 2013, said: “Through our seven Land Access Agreements and many dozens of heritage agreements, we have developed extremely strong working relationships with native title groups, including the Nyiyaparli people, providing significant benefits to Aboriginal communities including vocational training, contracting and business development opportunities, together with the identification and protection of important Aboriginal cultural heritage.”
Cleary says the Nyiyaparli episode was an early demonstration of the tactics that would mark FMG’s next bid for agreements for lucrative prospects on Yindjibarndi land and involve an 18-year saga that pitted the company against a thirtysomething traditional owner named Michael Woodley.
Divide and rule
It is 2003 and the Yindjibarndi have received disappointing, though useful, preliminary findings for a Native Title claim they submitted in 1994 in partnership with their neighbours, the Ngarluma. The Western Australian government of the day oppose an aspect of the findings that recognise the Yindjibarndi’s enduring connection to their Country. When final determinations are made in 2005, the Yindjibarndi will hear their native title rights have been extinguished over four-fifths of the area in their claim, a consequence of pastoral leases issued by the state over the previous 150 years or so.
In the same year, the Yindjibarndi make a second, individual claim over land just beyond the first determination area. This claim is considered to be much stronger as it covers areas of unallocated crown land. It is an area Rio Tinto has explored for iron ore previously but passed over. By this stage, FMG has entered the frame.
The company’s anticipation of the “awakening” iron ore markets in Asia, particularly China, in the early to mid-2000s is well documented and often celebrated (by the Chairman of FMG?). FMG enterprise caught the big iron ore miners, Rio Tinto and BHP Billiton, on the back foot in supplying the demands of the hot new market.
By late 2005, the price per tonne of iron ore had climbed from around $US30 a tonne to around $US60 and the upstart company was flying.
...continued
ESG is something to watch, and for Insto investors like Sprott is a first question!
You proabbly havent read one of the interesting ESG stories in Oz....lot to it, no more comments
Victory in an unfair fight: Pilbara traditional owners v Fortescue
Early in his new book Title Fight, economic policy journalist Paul Cleary recounts a 2005 episode which, long before the blasting of the Juukan Gorge rock shelters, showed the levels to which big miners could stoop in pursuit of profit.
Fortescue Metals Group (FMG) was pushing to rake upwards of 40 million tonnes of iron ore per year out of its “Cloudbreak” tenement in the Pilbara’s Chichester Ranges. This involved making agreements with five First Nations communities, including the Nyiyaparli.
The Nyiyaparli had lodged a promising claim over an area of their Country that enveloped a number of FMG tenements and the expected result – registration of the claim by the National Native Title Tribunal – would hand them a minor leverage over the mining company in negotiating a land use agreement.
The company, on the other hand, was already highly leveraged and desperately needed to start digging, having already assured investors that FMG had favourable relations with the traditional owners and could fast-track these projects.
The Nyiyaparli had become frustrated with their legal representation – provided by the Pilbara Native Title Service – due to drawn-out negotiations with FMG over establishing a land use agreement. Some important provisions had been discussed and nominal “settlements” made, but certain sticking points remained, such as financial compensation.
Their meeting would conclude with a “revised” land use agreement in place, one that removed the cultural heritage and environmental provisions “settled” between the Nyiyaparli and the company in earlier meetings.
Two days after signing the revised agreement, the Nyiyaparli elders returned to the Pilbara Native Title Service’s lawyers and asked them to have it voided.
They also spoke to journalists, explaining they didn’t understand the agreement and had felt pressured to sign it. The chairman of the elders group explained that when the group requested legal advice at the meeting before adding their signatures, they were told there had already been far too many delays and that the company would next take the matter to the tribunal – a course that historically favoured the interests of miners and pastoralists.
Another Nyiyaparli elder, David Stock, admitted to not knowing what was going on at the meeting. “I feel like they made me sign, they kept pressuring me ....
...next chapter ...
Recent research looks at gold and uncertainty relationship/s. It analyzes the determinants of the price of gold with a special focus on four uncertainty measures (namely, the volatility (VIX), the skewness (SKEW), the global
economic policy uncertainty (EPU), and the partisan conflict (PC) indexes).
The results show that a worsening of economic policy uncertainty contributes to increases in the price of gold. By contrast, gold prices are less likelyto fall when economic policy conditions have been improved
https://pure.hud.ac.uk/ws/files/13103695/Uncertainty_and_Gold_Market_Manuscript_Feb_2018_FINAFINAL_NO_TRACK.pdf
"worsening of economic policy uncertainty", what else could we ask for. In Oz, they have even started to burn down the old Parliament house, as the state chief medical health officers cant agree on rues that define "close contact", and the economists just about the route forward for inflation, whilst the poor Bu?ger int he street knows the purchasing power of his $ has been going down, and will continue, and the young people cannot are forecd out of the housing markets becuase of the stupidity of the reserve bank? One wonderws how long it will take for political uncertainty (and incompetence) will translate into social unrest.
So from an uncertainty perspective gold is good to go UP.
Imports made up 86% of India’s gold supply between 2016-2020, continue to grow despite high import duty,
Consumers and central banks counterbalance softer ETF inflows and some outlfows, to produce stable reasonable gold demand
Whilst the explorers failed to make any great discoveries to replace reserves or resources.
For every 1% increase in Inflation, gold demand In India increases by 2.6%, and we know where inflation is going.
World Gold Council Members contributed $38bn to local economies in 2020, so thats a great ESG tick, and ESG is being frontlined more than not now.
Happy New Year to all, and may gold pass through $2,000 mark in the next 3 months!
the Gnome
JP Morgan have issued some of the worst performing forecasts in the marker over the last 2 years. Whether they're genuinely meant to be forecasts, or cynically hefting their big brand name weight around to talk the price down while they feverishly stock up into the coming rally, well, that's another question. They often say one thing and do the opposite. So I'd just try to pay attention to what they do, and not so much what they say.
@Sotolo, I disagree with gold going to $1520.....I believe gold will be north of $2000 next year. CEY, SHG, SRB and other miners are great buys at the moment. I am not following the the crowd lead by JPM.
89.7
92p?
Yes Razors.
Do you think , the predatory Us Bankers and Hedgefunds could survive better, when, afrer all what do they contribute .
I prefer not to make predictions.
Much to dangerous.
Dont you think.
MrBond let’s try to predict the future if gold is to fall just for fun.
If heaven for bid the gold price does weaken the first category of miners to bite the dust would be those with nil cash, and if we allow category two, to be those with cash in the bank of up to $50 millions, and all the while gold dwindles even more despite to drop in world supply, but no matter, let’s add category three. The third cat to hit bankruptcy would have up to $100 millions to burn prior to hitting the wall, and all the while the POG still shows no restraint as production dwindles further.
It’s going to be a turbulent time indeed, the next category is those with cash of between $100 and $150 millions, then those with between $150 and $200 millions.
I think I’ll stop now MrBond as I fear we’ll reach Centamins category of those with between $250 $300 millions way too soon.
Dear me, seems the best part of the day when owning Centamin shares is the middle of the night.
Reminds me when Chicken Licken shouted “The sky is falling down', but Foxy Loxy had a cunning plan...”
The only thing probable is there will be a rush to cover paper at a price as low as possible.
But there will be many buying at lower prices.
The state of the US ecomomy is fragile,especially for companies like JP Morgan and their like.
What else could they be expected to say , the truth maybe. Ha Ha. Not likely.
The FED is running out of ammunition,and trust ,after saying continuously, inflation is transitory.
Their only chance when the end of 22 comes is covering paper PM offers .
Much easier said than done, but not too would be bankrupcy for them.
In the meantime Centamins production can be expected to rise, prospects having surveys , that is my humble opinion.
Time will tell.
Now its almost impossible too predict anything.
With any certainty, too many other things can happen.