We spoke to new Sterling Energy CEO Tony Hawkins about the latest changes happening at the company. Watch the full video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East and have access to Premium Chat. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Hi Rebess, I took a random look earlier but couldn’t find any London listings, they do have a London office in Kensington but if you look to the top of this link the share price is quoted in Dollars with the ticker EDV
Where they’re traded I don’t know.
Where is Endeavour quoted? - Which exchange and what's the epic?
Seconds later... gold now above $1281.00
Keeping upward pressure on Cey’s share price
The gold price has perked up a little since this morning current numbers:
+ 0.24% + $3.14 $1279.04
High of the day now $1279.34
I see Endeavour Mining announce their Q1 results and are having a webcast this coming Wednesday May 1st.
Intriguing post. - I like your 'Sherlock' approach. - If there were to be a merger, I wonder what would happen to Centamin's London listing?
We have discussed mergers and takeovers many times on this board.
Endeavour is yet another and in my opinion Endeavour have too much on their plate at the moment to get involved in a merger and would be encouraging new entrants into the market.
No dispute regarding synergies but don't think Endeavour has the financial clout at the moment and far too many possible maybes, however nothing but respect for James Askew so who knows.
Maybe a different story when Centamin has a few of their West African mines up and running or more advanced.
Something that also needs to be considered is in the likes of Burkina, Mali, IC, Ghana etc there will be what they call a Chamber of Mines or something similar in French. The Chamber will be made up of Mining Companies, Government Official (s), Contractors and Suppliers as full members and associate members. Ideally there needs to be several different Mining companies as this gives strength in numbers when necessary, hence my mention of encouraging new entrants.
Such a Chamber would I am sure be welcomed by Centamin in Egypt as they seem to be a lone voice BUT Investment Laws/ Mining Laws need to be more favourable to encourage investment/mergers.
Had the investment climate been more favourable and the court case not continued to be an issue, then feel sure Centamin would have had serious takeover interest from the majors a long time ago.
I'm going to go the "full Sherlock" on the Burkino Faso mystery...
Based on the admittedly limited evidence before us, I hypothesise that this is what has been and is going on behind the scenes:
1. Centamin felt they had to make a choice between developing their exploration assets in Cote d'Ivoire and those in Burkino Faso. They plumped for Cote d'Ivoire, and decided to put the Burkino Faso assets (mining licence and all) up for sale (or possibly to be joint ventured). That's why they've stopped talking about Burkino Faso entirely and they slipped in the line about the disposal of non-core assets in the RNS that Cowichan spotted.
2. Endeavor, the owner of two gold mines in Burkino Faso, naturally took a look at Centamin's Burkino Faso assets as part of their own well-documented expansion drive. In the course of this process, their 30% major shareholder, the Egyptian billionaire and gold bug Mr. Sawiris, started to think about a takeover of the whole of Centamin. (After all, he has the connections in Egypt to make such a deal work, and he understands the exploration potential there).
3. Endeavor poached Centamin's C.O.O., Mark Morcombe, back in February. (It's one way of doing thorough due diligence!). Centamin were caught on the hop by this move, and (unusually) made Mark Morcombe work out his 3 month notice period (see last RNS; note also the lack of the typical expression of gratitude for his service). Centamin then appointed an ex-Endeavour employee as their new C.O.O.
4. The two companies are currently discussing a merger, with Endeavor pushing the idea. I don't know if they'll reach an agreement or not, but if they did, it would certainly be good for their shareholders! I'm confident that the two companies put together are worth more than they are separately.
Elementary? Or completely wrong?
Have gone through the history of the last year as new to this share.
Seems that a year ago, when the SP was at 160, the rot started after the 25th May RNS output downgrade due to continuous low grades in the transition zone of the open pit mine.. Dropped all the way to 90 on Sept 10 2018 before SP climbed back up to a high of 130 on the 18th/25th of Feb 2019 then dropped again to the lows of last week.
Can't really see a reason for the next drop though apart from 'neither here nor there' results in Feb but that seemed expected as well. Maybe not so much then?
However, if results are good now (Q1 RNS) and the result for the year may actually end up on the high end of the range, is there any reason for the SP not going back to teh 160 again swiftly? Or is that pie in the sky?
Thanks for your views.
Also Blackrock is a significant owner/shareholde (>10%) of both companies, and is in the business of making as much money as it can in as short as time as possible (or something like this). Must be hurting?
Acacia mining AISC $1023 per oz in 2018
Results out today
If we are musing about a possible Endeavor Mining and Centamin merger (which IMO would make a lot of business sense), then we shouldn't forget a key fact:
Endeavor is 30% owned by La Mancha, the gold investment vehicle of EGYPTIAN billionaire Naguib Onsi Sawiris.
I've always thought that, in practical terms if not de jure, the Egyptian state would have to consent to any takeover of Centamin. Perhaps Mr. Sawiris is the man to obtain this permission, to resolve the court case, and to develop other mines in Egypt? After all, the Nubian Shield is one of the last great under-explored gold regions in the world and a very very tempting prize!
Sainsburys Asda merger..
That’s the headline, my thought is this is by trying to prevent monopoly is by default handing it to Tesco.
Europe trades slightly higher in premarket
Markets in Europe traded slightly higher during the premarket trade on Thursday as market watchers focused on a string of corporate earnings due for release before the bell. Bayer and Groupe PSA already posted their financial results while Barclays and Volvo are due to release theirs later today. Meanwhile, Carlos Ghosn, former head of the Renault-Nissan-Mitsubishi alliance, was granted another bail by the Tokyo District Court.
The German DAX gained 0.12% while the French CAC 40 added 0.09% at 7:54 am CET. In the meantime, London's FTSE 100 increased 0.12% at 7:55 am CET.
The euro remained flat against the US dollar, rising 0.02% to go for 1.1157 at 7:55 am CET.
Breaking the News / VK
+ 0.05% + $0.71 $1276.48
High of the day $1276.88
Mining in Burkina Faso: Minister Oumarou Idani Signs Three Operating Contracts
On Tuesday, February 26, 2019,
the Minister of Mines and Quarries, Oumarou Idani, signed three mining resource agreements in three provinces namely Noumbiel, Zoundweogo and Ganzourgou. The co-signatories of this agreement are the mining companies
Konkera SA (Centamin PLC)
Kiaka SA (B2 Gold)
and Bombore SA (Orezone Gold)
They now have the right to exploit mining deposits in the provinces mentioned.
The ceremony marking the official signing of these three conventions between the State of Burkina Faso and the mining companies took place on Tuesday, February 26, 2019 in the premises of the Department of Mines and Quarries. This act comes to materialize decisions made in the Council of Ministers. In fact, during the Cabinet Meetings of August 11, 2016, November 25, 2018 and December 19, 2018, the Government authorized the Minister of Mines and Quarries to sign the agreements between the State of Burkina Faso and the companies Konkera SA, Kiaka SA and Orezone Bombore SA
For example, Konkera, which has had a mining license for the large gold mine since 2015, is authorized to operate the mine in Batié commune, Noumbiel province, in the South West region
Minister Omarou Idani stressed that "the negotiations were long.
He also welcomed the sense of responsibility of the mining companies, before calling them to respect the terms of the contract. According to his remarks, the Burkinabe government holds 10% of the capital in each of the three operating companies.
As a result, its department expects companies to produce about 144, 66 tonnes of gold and about 609 billion CFA francs of foreign direct investment.
On this basis, Konkera (Centamin), which has a seven-year contract, will produce 28.6 tonnes of gold.
One could argue Centamin hired Jeremy Langford as COO in anticipation of the above project commencing
I for one would be disappointed if Centamin offloaded the Burkina Faso portfolio after so much time and effort!
But that theory has gained some legitimacy with the inclusion of this sentence from today's presentation:
'Assessing optimal realization of non-core assets'
see page 3 centamin.com/~/media/Files/C/Centamin/documents/presentations/2019/centamin-1q19-presentation-240419.pdf
Is that code for selling off BF assets? I mean, there isn't any other non-core assets to 'assess'!
As disappointed as I would be I have to believe management will make a highly informed and educated decision one way or the other. I just hope they do it soon.
Probably a conservative opinion. The ASM (Artisinal and Small Scale Mining) is the gaming grounds of corrupt politicians, civil servants, military (etc), who hinder every move to try and reform the abysmal state of affairs. Its not just the lack of tax being paid, tax would help to alleviate the poor condition of many of the countries, but the working conditions and massive exploitation of young children (need less air, smaller bodies, more vulnerable), and not to mention women. The environmental degradation is beyond belief, and areally and time wise is devistating.
A recent report in Burkina Faso for instance, in October 2016 by a parliamentary commission of inquiry on mining titles and the social responsibility of mines, the Burkinabè state suffered a profit loss of almost a billion US dollars between 2005 and 2015 due to corruption, mismanagement and speculation in the mining sector. It was rumoured that Compaore's family was in it up to their necks, and even had a small refinery in country !
A 2017 Danish, Oz collaboration is worth a read
"Illicit natural resource trade continues to benefit corrupt officials, criminal and terrorist networks and
to divert resources away from development, security and the common good in West Africa. How are
Liberian timber, Sierra Leonean diamonds, Malian gold and Nigerian oil traded outside, and intertwined
with, legal value chains before ending up in what is often legal consumer markets? By collating recent
knowledge of the ‘shadow value chains’ of these resources, this paper seeks to explore if and how illegally
traded natural resources sponsor other types of illicit activity, such as organized crime and terrorism.
Furthermore, how are these activities facilitated by corruption in the different cases? The paper gives a
number of recommendations. The perhaps most important one is that in order to improve interventions,
in-depth understanding of local power relations and incentive structures in these individual shadow value
chains is crucial. Such knowledge should be paired with increased attention to how international actors
and networks facilitate and accommodate illegitimate private gains stemming from lootable West African
natural resources. "
The guess is that about 100 million people world wide are invlved in this appalling exploitation, and this extends globally. Mercury usage and environmenta impact is staggering.
and lets not mention the DRC
Have been fascinated by the complete disappearance of the Burkina Faso assets off the resource graph and off the presentation entirely! Something is brewing. Thinking "aloud" again...One of the well proven ways gold companies grow quickly is through M and A.
Centamin took over Ampella for about $40m (I forget Ampella's cash position) to get a toe hold into West Africa, which is one of the fastest growing gold regions in the word, as one see very well by looking at the Endeavour Mining strategy presentation I previously posted. I presume that they are not mentioning the Ampella Burkina Resource (including any upgrades through their drilling there), as it is not material to them and they do not know how to make the project work and deliver the financial metrics they need for a new project/allocation of capital, and possibly because the ex Ampella discovery at Doropo presents a better set of financials, including upside. Also, could be thinking they do not want to overexpose themselves to too many jurisdictions. All good.
But another question is how does CEY leap forward in terms of value creation for shareholders, manage their development risk in a new and very different jurisdiction (West Africa) to Egypt, diversify their sovereign risk, increase their reserve/resource and production profile (etc). How does Endeavour achieve their strategic goals, and create value by their existing asset base (which seems to me to include a fairly good development team)?
Endeavour seems a good fit to me, to provide the mutual strategic goals.
A combined entity would have
A resource base of in excess of 32 million ounces of gold
A reserve base of in excess of 15 M Ozs
A production profile of 1.1-13. M ozs per year at a AISC <<$900/oz
Mine lives of >>10 years in 3 countries
Significant quality exploration ground and upside
A combined Market Cap of in excess of $2.7b, and my guess would be that it would be a significant mark up.
Endeavour Share price has languished since about 2016, basically flatlined with some ripples. Centamin has done what we all know in the same period.
Endeavour seem to have a very good West African development team, know the laws, know how to do successful mining and exploration business in West Africa
I see some interesting synergies.
NAIROBI, (Reuters) - Billions of dollars’ worth of gold is being smuggled out of Africa every year through the United Arab Emirates in the Middle East – a gateway to markets in Europe, the United States and beyond – a Reuters analysis has found.
Customs data shows that the UAE imported $15.1 billion worth of gold from Africa in 2016, more than any other country and up from $1.3 billion in 2006. The total weight was 446 tonnes, in varying degrees of purity – up from 67 tonnes in 2006.
Much of the gold was not recorded in the exports of African states. Five trade economists interviewed by Reuters said this indicates large amounts of gold are leaving Africa with no taxes being paid to the states that produce them.
Previous reports and studies have highlighted the black-market trade in gold mined by people, including children, who have no ties to big business, and dig or pan for it with little official oversight. No-one can put an exact figure on the total value that is leaving Africa. But the Reuters analysis gives an estimate of the scale.
Reuters assessed the volume of the illicit trade by comparing total imports into the UAE with the exports declared by African states. Industrial mining firms in Africa told Reuters they did not send their gold to the UAE – indicating that its gold imports from Africa come from other, informal sources.
Most of the gold is traded in Dubai, home to the UAE’s gold industry.
The UAE reported gold imports from 46 African countries for 2016. Of those countries, 25 did not provide Comtrade with data on their gold exports to the UAE. But the UAE said it had imported a total of $7.4 billion worth of gold from them.
In addition, the UAE imported much more gold from most of the other 21 countries than those countries said they had exported. In all, it said it imported gold worth $3.9 billion – about 67 tonnes – more than those countries said they sent out.
In Burkina Faso, Oumarou Idani, minister of mines, believes his country is leaking gold to UAE on a massive scale. Of the 9.5 tonnes of gold the government estimates informal miners dig up each year, just 200 to 400 kg are declared to the authorities, he said.
Much of the gold is smuggled from landlocked Burkina Faso to its Atlantic coast neighbor Togo, according to the minister. In Togo, virtually no taxes are imposed on gold.
The Resolute Solar Hybrid move is projected to save 40% on Power Costs. With solar prices falling dramatically (from $US178/MWh to just $US50/MWh over the past eight years), large-scale solar is already one of the most attractive options for new generation.
A lot of mines are positioining for this energy mix/solution.
But the mines are not leading the pack. The amount of large-scale solar installed around Australia jumped from just 34 MW in 2014 to 450 MW at the end of 2017 and is expected to have another significant rise in the coming years as 25 projects have already been completed in 2018 and a further 59 projects are in construction or due to begin construction soon (this includes hybrid projects combining wind and solar). Considering only four large-scale projects became operational in 2017, this is a huge jump in the number of solar plants being built around the country.
Genex Power’s 50 MW Kidston Solar Farm in Queensland was the largest solar project commissioned in 2017. 2018 has seen the completion of the 189 MW Coleambally Solar Farm, 148 MW Ross River Solar Farm, 138 MW Darling Downs, 125 MW Sun Metals Solar Farm, 110 MW Wemen Solar Farm and the 110 MW Bannerton Solar Farm, along with many others.
The bigger solar farms (and they are getting bigger, far bigger than Centamin's enviasged)
1. Noor Complex Solar Power Plant, Morocco
Noor Complex is the world’s largest concentrated solar power (CSP) plant, located in the Sahara Desert. The project has a 580-megawatt capacity and is expected to provide electricity for over 1 million people once completed by 2020....the first phase of the three-part project provides 160 MW of the total 580 MW capacity
2. Kamuthi, Tamil Nadu, India
This solar farm in the southern state of Tamil Nadu in India has a capacity of 648 megawatts and covers an area of 10 square kilometres. In 2016, this project was deemed to be the largest solar power plant at a single location. The project comprises 2.5 million individual solar modules and cost approximately 679 million USD to build.
3. Longyangxia Dam Solar Park, China
Spread over more than 25 square kilometres, the Longyangxia Dam Solar Park consists of 4 million solar panels. The plant’s sheer size and 850 megawatts capacity made it the largest solar farm in the world in February 2017. This impressive solar project is located in the Qinghai province of China. The park generates around 220-gigwatt hours of electricity per year.
4. Kurnool Ultra Mega Solar Park, India
With the Longyangxia Dam Solar Park, China took over the title of the largest solar farm however, India soon reclaimed this with the launch of its 1000 MW Kurnool Ultra Mega Solar Park
AISC with 40% saving in power comining up?
Great day with no sting in the tail, back to the old caution ,no news of the Solar energy plant massive plus. costs look to be reasonably controlled going forward. Lets see some Director buys if the main man ain't buying from his zero holding I ain't either. x
Hi Cowichan, good article to read, not so sure how Sisi will be portrayed, Amnesty International don’t like what’s happening at moment regarding political prisoners/dissenters. Reputation counts for a lot, but do shareholders just care about the price? We are a fickle bunch. Wait and see! Hopefully the SP will keep its head above water tomoz and a consistent rise up to 130p. Would then be able to turn back into profit. I still expect this to take a fair few months!
Tiger and GoldGnome,
Thanks for your responses. A tie up in whatever form is an interesting thought.
1) Presidential terms will be extended to six years with a two-term limit. In practical terms, that means voters next head to the polls to choose a president in 2024. Under a transitional clause, El Sisi will have the option of standing for a third and final term, potentially allowing him to remain in office until 2030.
2) Egypt gets a senate: A 180-member upper house of parliament will be reinstated as a senate (replacing the disbanded Shura Council). As was the case with the Shura, one-third of members will be directly appointed by the president. The senate will be responsible for approving government policy and ratifying international treaties.
3) The return of the office of vice president could see Egypt with one or more VPs;
4) Women are guaranteed 25% of all seats in the House of Representatives;
5) The president will have new powers to appoint judges and the prosecutor general;
6) The army’s position as the protector and guarantor of the state, the constitution and the people is now enshrined.
My takeaway: The long term stability of improvements to economic policy should be very good for business
Also, Sisi being able to appoint business friendly judges (or sack those who oppose free market policies ) is a gamechanger