We chatted to IronRidge Resources' CEO Vincent Mascolo who explains why the company has become a lithium explorer. Watch the video here.
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Europe trades lower premarket, Brexit remains in focus
European stocks declined in premarket trading on Tuesday as investors continued to focus on Brexit.
The United Kingdom Parliament passed a law which forces Prime Minister Theresa May to seek another Brexit delay in order to avoid a no-deal scenario on April 12. May is set to hold talks with German Chancellor Angela Merkel and French President Emmanuel Macron later in the day in an effort to convince European leaders to allow Britain to once again postpone leaving the European Union. The bloc's leaders are set to discuss May's request and make a decision on the matter at the EU summit on Wednesday.
The FTSE 100 was down 0.19% premarket, the DAX lost 0.33% and the CAC 40 dipped 0.13%. The euro traded flat against the dollar to go for 1.1263 at 7:52 am CET and the pound rose 0.23% compared to the US currency to sell for 1.3088 at the same time.
Breaking the News / NP
+ 0.08% + $1.10 $1298.78
High of the day $1300.10
Tibbs what do you understand as high grading and how does a mine that is lucky to get 1 gram a tonne actually mine high grade? When I look at the photos of the mine I don't see large areas that have been mined and other areas that haven't been mined it all looks pretty uniform.
+ 0.46% +$5.95 1297.72
High of the day $1303.77
Rebess I am not as pessimistic and given the equipment fleet I see no major issues moving the tonnage although looking at the photo of the pit they could do with more loading tools as too many trucks standing waiting to be loaded. If they are waiting the ain't producing. Tibbs you would never see this photo if a contractor is responsible for producing the tonnage.
I hope the photo is a "shift change" because otherwise it is inefficient use of very expensive kit.
What I don't know is how they are dividing the fleet to open up transition 5 (moving waste cut back) all we know is that they are going through a higher strip ratio and also don't know how the grades are holding up so as we can see plenty of questions.
However as I say moving the tonnage shouldn't be an issue and tonnage should mean ounces.
Not providing prelims is disappointing but lets hope no news is good news.
Quite so Rebess, Yet despite Josefs statement his brother the Sukari manager announced in the Egyptian media that Sukari would be producing 560,000 oz in 2018-19, also Andrew Pardey stated the same figures in the 2018 Q1 presentation!
If the Sukari team could produce gold as well as they produce media hype and spin then we would all be getting a good divi this year rather than scraps and promises of better times in the future if we are just patient, after all eight years isn't long for a court case based on lies and innuendo!
Please don't think that I'm not grateful for your thoughts and input Dasut, I am most grateful,
However in my view Josef had then and has now once again a responsibility & duty to safeguard the best interests of the share holders, it states this in the mission statement on the company website.
So no side stepping for Josef of his responsibility just because its awkward being two weeks before any presentation, two weeks,two days or whatever.
True the share price may have taken a hit if honesty and integrity had prevailed, and Josef had done the right thing in the first instance, but he didn't and instead he allowed figures and forward predictions to be announced that created the impression of much better sustainable forward guidance to the market and share holders than was actually possible, not only that he sold ten millions shares and decided to walk away, yet when questioned on this Buchanon stated hat nothing was wrong and Josef was just taking more of a back seat nowadays!
So when the truth came out (3 weeks after 2018 Q! upbeat forecast )that the previous 24 months or bonus production had been achieved by "high grading and this coupled with the managements failure to mitigate production by allowing the underground LDDR to fall apart, the resulting hit by the market was much more severe and far longer lasting than if the management had been totally open and honest in the first instance
I appreciate that you are a decent chap and that you want to give the management the benefit of the doubt and that unforeseen difficulties occur in gold mining, but there is little excuse for what has gone on here, the share price has been manipulated up by high grading & media hype of unsustainable ongoing guidance.
But the wheel has fallen off the LHDR, the underground mine has grade and access problems and the managements tactics and the true state of Sukari have now been exposed.
What is really sad is that the Centamin management have lost their credibility with share holders and the markets,but unfortunately it is not them who are paying the price but instead the patient and once trusting share holders!
No doubt some of the usual posters who are not whom they claim to be will pop up over the next few days telling me that mining is difficult, get over it or be patient, I've heard it all before!
I want the management to get off their butts and deliver more than promises of better times some time in the future perhaps!
Thanks Chas - It looks as though there'll be no prelims this time. - I believe, I could be wrong, but that in itself is a further new development in restricting communications. - There's always prelims! - On the other-hand, it may be no bad thing. If there is bad-news, it'll restrict us to one good-hiding instead of the two we've become used to - Who knows, maybe that's why they are doing it.
Apr 24 - Q1 2019 Quarterly Report
Jul 24 - Q2 2019 Quarterly Report
Oct 24 - Q3 2019 Quarterly Report
Fed Tapering Link. Updates every Friday lunch/afternoon with a helpful chart. They knocked off 20bn this week, 6bn each of the two weeks before. Hope it helps
Hi DA SUT - Yes indeed, I picked up and noted the 450-500 comment. - Of course this years forecast of 490-520 goes beyond that conservatism with Josef back at the helm. - So, we'll see, my own view is that they will fail to meet this years guidance once again and we all know what the likely effect on market-cap will be. Q1/Q2 will be a guide as to whether there is a cat-in-hells of reaching this years target. Some very dodgy-moves already in play here, eg. no notification on Q1 prelims yet. Appreciate any comments you may have regarding the current state-of-play especially the secrecy and lack of reporting that previously was the norm. We all know that since this all kicked-in from last May, secrecy/silence has become synonymous with failure to reach targets.- cheers
Not sure how you report that the last 24 months are a bonus but the next 12 months are more likely to be back to earlier forecasts of 450/500,000 ounces without the share price taking a hit as it did.
However it would have been worth a try and no idea if Josef vets the CEO's presentations such as the presentation made at the Denver conference only weeks before the 2nd Quarter results.
Bullion Vault 19/03/2019 :)
QT dead QE 4ever. Bullion Vault 19/0/2019 :)
Thank you Dasut,
I note your comments, but in view of Josef's reservations shouldn't he have put those building up output expectations right, instead he seems to have condoned or remained silent about their behavior and then profited from it by selling a huge amount of shares at an opportune time?
Rebess I attended Indaba 2013 and sat through Josef's presentation and I had previously asked him whether he felt the mine could produce in excess of 500,000 ounces a year and he said a mine producing 450 to 500 for 20 years in his presentation. He didn't want to make any commitment above 500 which is interesting because his conservative approach worked.
Seems when he relied on others to run the company they got carried away with their own success and believed that the over 500,000 ounces was a norm and made the mistake of reporting that this would be the norm.
Hi bardill - It seems everything the company does these days results in a loss of market-cap. - They don't need any help from anyone, the press or anybody else, they mange perfectly well on their own. - My fear is that this perfected skill they've acquired is about to be demonstrated once again very shortly. I'm surprised they haven't linked remuneration to it, ie. the more they drive it down the bigger their bonus.
Tibbs It is common place for start up mines to use contractors primarily because up front capital investment of trucks, shovels,drill rigs, etc, and availability of equipment, operators, supervisors and the list goes on. I like contractor mining because you buy in expertise and the owner miner can get on and manage the gold processing and marketing. Companies like Ausdrill, AMS have been working in West Africa for many years in f'act I was involved with first introduction of contractor miners in Ghana. In a very short time the Ghana mining industry was dragged up by it's boot straps with highly efficient professional operators as it is their business to mine efficiently and are judged by their cost per tonne rates so the client knows what their costs are up front.
Thank you HEDGEHOGG.......
For the current FED QT status
Confirms what Andrew Maguire and other so called conspiracy theorists have been saying for years!
Sadly the past 12 months or so events have has made it appear as though the company is being run mainly to give advantage and maximise the rewards of a privileged few at the top table at the expense of the share holders!
Fair comment bardill,
So perhaps now Josef has returned he should seriously consider showing his commitment to the company and its share holders by rectifying some of the damage caused over the past 12 months or so.
1.Buy back at lest the number of shares he sold, albeit at a bargain price!
2. Make a concerted effort to get the court case resolved or settled in some way.
Both or either of these actions would help to restore market confidence in the company and help boost the share price.
Very good point Rebess , it does seem like double standards!
For eight years the company management board appears to have been sitting on its hands over the court case, whilst it costs the company at least 20% of market cap, surely by allowing the court case to drag on like this the board are failing in their duty to safeguard the best interests of the share holders which they claim as being a .
Even if this had gone to the international court after waiting two years the case would have still been settled by now.
It's al very well to for the company management to want to foster a good working relationship with the government, but this situation seems very one sided and there comes a time (nearly eight years) when one has to ask "Are they having my leg up?"
I appreciate that Siko says we need to be patient, although surely even by Egyptian standards eight years waiting must be deemed to be very patient indeed?
Hi Rebess .
As I see it Centamin has lost approximately £900 million market cap in last two years . Firstly £300 million loss due to Josephs massive share sales .( 180p - 150p / share) Secondly £600 million loss due to not achieving and missguidence of future gold production figures.( 150p -90p / share.)
Thank you Dasut,
I wonder is using these contractors more cost effective than using an in house team and will it mean that they may actually be producing some gold in a tighter time frame?