The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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Centamin (OTCMKTS:CELTF) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Thursday, Zacks.com reports.
I experienced many tornado's in my childhood with one wiping out all the houses at the bottom of my street in Illinois, but nothing on the scale we are seeing on the news tonight that hit Kentucky. I remember once running from a baseball field with a tornado dropping down behind me. Its why I call myself TornadoTony, I survived to tell the tale.
Yes Older@wiser,the source of that info .
Not possible until final results for 2021 unless a close insider gave it, unlikely though.
The original question was ? Strange.
Who on here would answer or give advice?
Very strange .
Can you please direct me to the source of the 5.3% 2022 dividend yield? That does seem odd, or a non-too subtle hint.
I've looked to buy in on this stock many times over past years but it never seemed quite right for me due to circumstances, price or where it stood as a company in its somewhat checkered history.
Things seem to me to be better management and direction wise currently with increased production on the cards and reducing AISCs albeit as has been raised with a degree of clarity missing with the ranges quoted but the general direction lower seems to be the way it's travelling.
So I've once again been drawn in by the share price level together with the dividend which is quite a consideration for me although I've read that:
'its yields for 2021 and 2022 sit at 7.2% and 5.3% respectively'.
Could someone please educate me if this is correct and if so why the divi drop when things are positive and moving forward ?
The growth potential + dividend north of 5% is very attractive but because of the low share price I'm wondering if I'm missing any key info here or if the price has just come back with the gold price?
Thanks.
Steve, what's your preferred "go to" PM AIM share now, for yield+ some growth ?
Makes sense when selecting a broad range for a portfolio but way too simplified when you’ve detailed knowledge of a company and a stock.
At a macro level here, like all PMs, gold price has dropped YTD, and not gained a bid yet despite inflation which is usually seen as a driver- the double whammy with inflation as it’s caused PMs costs to increase too- as is the case here with CEY, causing drop in SPs- Vitaly at Poly mentioned this twice this year and their SP got hit at these times. The divi is defo under threat here. The world moves fast these days, and I won’t be sitting and waiting here - just trade it around RNS when good news is delivered- removing risk if sudden downside like Oct2020 and the other day when the speed of recovery is just too slow. I’m a bit worried too about the next set of financials too for obvious reasons. Takeover is always possible, but only if people think they can do better with the core product.
I traded POLY yesterday when I used to trade CEY around US data points - price action since the 8th has left me nervous.
The risk reward on gold PMs at the moment is it giving more risks with less reward. By providing such a broad range in the AISC- doesn’t give me confidence.
All PMs need a gold bull run to state the obvious, despite many predicting this last summer, it’s done the opposite.
Quality and value are two important drivers of stock market returns - yet many investors fail to take them seriously. At a time of deep economic uncertainty, using these two powerful factors to find stocks could help you navigate market volatility.
The Centamin share price has moved by -1.19% over the past three months and it’s currently trading at 91.4p. But what's interesting about this share is its potential exposure to the influential profit drivers of high quality and a relatively cheap valuation.
This matters because at a time when many investors are on the lookout for cheap shares, it's important to know the difference between a genuine bargain and a value trap. The secret is that it's often the quality of the stock that makes all the difference. While no stock is immune from a sudden setback, focusing on quality and value is what some of the world's best investors do.
Good quality stocks are loved by the market because they're more likely to be solid, dependable businesses. Profitability is important, but so is the firm's financial strength. A track record of improving finances is essential.
One of the quality metrics for Centamin is that it passes 5 of the 9 financial tests in the Piotroski F-Score. The F-Score is a world-class accounting-based checklist for finding stocks with an improving financial health trend. A good F-Score suggests that the company has strong signs of quality.
Buying at a fair price
While quality is important, no-one wants to overpay for a stock, so an appealing valuation is vital too. With a weaker economy, earnings forecasts are unclear right across the market. But there are some valuation measures that can help, and one of them is the Earnings Yield.
Earnings Yield compares a company's profit with its market valuation (worked out by dividing its operating profit by its enterprise value). It gives you a total value of the stock (including its cash and debt), which makes it easier to compare different stocks. As a percentage, the higher the Earnings Yield, the better value the share.
A rule of thumb for a reasonable Earnings Yield might be 5%, and the Earnings Yield for Centamin is currently 21.8%.
In summary, good quality and relatively cheap valuations are pointers to those stocks that are some of the most appealing to contrarian value investors. It's among these shares that genuine mis-pricing can be found. Once the market recognises that these quality firms are on sale, those prices often rebound.
Here's where that difference shows up:
https://www.stockopedia.com/articles/why-quality-and-value-might-be-key-drivers-of-the-centamin-share-price-253789/
Hi Patrk
Well I fell for it , wishful thinking I suppose, but we should be back well over a pound in the new year as things become clearer, its not unusual for Centamin to get a kick in the balls at this time of the year!
Rhenium is a chemical element with the symbol Re and atomic number 75. It is a silvery-gray, heavy, third-row transition metal in group 7 of the periodic table. With an estimated average concentration of 1 part per billion, rhenium is one of the rarest elements in the Earth’s crust.
https://www.lenntech.com/periodic/elements/re.htm
https://ion4raw.eu/service/rhenium/
Well done Don!
Quite so Mr Bond, this confirms Martin Horgans decision to carry out an up to date review of the Sukari resource, I heard rumours early on into the exercise that they were quite exited about some of the findings.
Hi Mr Gnome,
The new BOE governor is turning a blind eye to the problems that are waiting down the present road , this is a very interesting webcast ‘The Paradigm of Money’ .
The shocking findings of their feature documentary on Wall Street corruption.
https://www.youtube.com/watch?v=MTpsfEhOdSQ
The fact that AISC figures produced by mining companies is highly selective explains why even “low AISC” companies somehow never make enough net free cash to pay dividends. Not only that but many of these ‘highly profitable’ companies find themselves having to come back to the equity markets over and over again, to refinance.
Good find Don.
So there is the possible "Bonanza" find.
Just need another in the open pit.Once cleared.Remember there is a chance of opening up into underground in there ,possibly.
Hi TornadoTony,
Thank you for your pragmatic analysis and pointing out some important positives on this important issue.
Having now read this Note it appears to have been published before the Webcast. The Note claims base case is 460K pa whereas the transcript makes clear that 500K is the targeted base case and CEY expect to build on this. CEY apologised for the confusion over the 460K lower limit which appears misleading but was accounting procedure
Buying opportunities at these low prices
I am sure the BOE can slash interest rates, but there are ramifications.
1. No point in holding cash in bank...you ARE paying the banks to do this whilst your buying power rapidly deteriates
2. Following from 1. Cash will run to create asset bubbles in real assets, and has done and is doing this. We have several bubbles bubbing merrily away.
3. p/e ratios are abnormally high, and in some cases insanely high. Of course they are banking on future earnings is the waffle, but "future" waffle in such an uncertain world, full of disruptions pandemics and incompetent governments? Good luck on that one. BUt the Lemmings love it , and we know something they might not...
4. Trust as one of the most important commodities you can't buy, goes outside the room, and when this happens, prices go up, business costs likewise, regulations increase, the velocity of effective invesments goes down, and uncertainty goes through the roof.
So yes, the lunatics have a firm grip on the asylum, and the BOE may do what it likes, but I would suggest caution is not a bad position to be in.
If you have a look at the gold price before "trust in the markets" and the all enabling (and very distracted -other things on his mind) rubbish of the Clinton era, the trend of gold has been inspiring (hint, look on a linear scale)
https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart
$500-$1800 in 20 years....and what has the us$ done ... purchasing parity...
"When The Economist introduced its Big Mac index 35 years ago, the ubiquitous McDonald’s hamburger cost just $1.60 in America. Now it costs $5.65, according to an average of prices in four big cities. The increase comfortably outstrips inflation over the same period."
my bet, the price of a hamburger will go to $10 !
best
the gnome.
Forget gold (not really!) - apparently the area around Sukari (V-Shear prospect) is loaded with extremely high grade strategic metal Rhenium (Re).
Drill results:
108 m@1230 g/t drill hole VS037
11m @ 4937g/t
3 m @ 8832 g/t drill hole VSSD001
19m@ 5177g/t
13m@ 1276 g/t
The results of this study confirm that we discovered a new Extremely Rhenium (Re)-Th-U-Rich Zones in the V-Shear-Ridge project of the Sukari Gold Mine area.
According to Kitco Rhenium sells for around $ 1400.00/kg
https://www.researchgate.net/publication/349538467_Extremely_Rhenium_Re-Th-U-Rich_Zone_in_Central_Eastern_Desert_of_Egypt_V-Shear_of_Sukari_Gold_Mine_Area
https://www.kitco.com/strategic-metals/
Steve,
They started with $60M baked in on savings from completed projects and then gave some delivery times when things kick in. For example, the fleet changes were on-going and complete in a few months time, the solar farm build should complete 6 months into the year. They indicated that AISC will vary each quarter and the range will be made tighter during the year. They were holding out hope of some inflationary declines but fully expect Egypt's inflation for labour to be 6.3% in 2022. What they do not know is whether Egyptian pound devalues against USD and how much. Hence we get these wide ranges and they set up for positive surprise after the fiasco of late last year.
I am just waiting for a confirmation on the bottom and I suspect it was today. When bloomberg bring on so called experts to speak on behalf of all the FED and say they will end taper in January and hit the ground with 4 rate hikes, that it is the time to buy gold and those who mine it. All the best Tony.
They obviously don't and are happy to keep skimming off the top.
Not visible what they are doing to earn the money.
It's history.
Bad in hindsight.
But different CEO.
YOU nor any person ca change thar, but we all have our own options.
Enjoy the weekend everyone.
Posted an hour ago...
“We are extremely excited about the exploration potential in Burkina Faso and given our strategic foothold as the largest gold producer controlling nearly 7% of the country’s highly prospective greenstone belt, we believe that we are well positioned to grasp this opportunity.” says Jono Lawrence, VP Exploration Burkina Faso.
Listen to Jono present our plans in Burkina Faso where we are targeting the discovery of up to 10Moz as part of our 5-year target of discovering of 15-20Moz at <$20/oz across West Africa.
The country is one of the fastest growing global gold producing regions and it has experienced a 5-fold gold production growth rate in the last decade. #exploration #accountability
https://www.linkedin.com/posts/endeavour-mining_endeavours-exploration-potential-burkina-activity-6875121733288898560-Ic94
-------------------------->>>
My Thoughts:
Interesting Endeavour used the hashtag #accountability at the end of their post. The word just happens to be the antonym of what Centamin could hashtag regarding their bumbled attempt to develop the 1.4 million ounce Wadaradoo deposit (I'm thinking #dontgiveash*t)
Regardless, who will end up with Batie West? And what reward will Centamin shareholders reap from the long debacle that was Centamin's entrance into Burkina Faso? Cash? Royalty? Joint-venture equity? Stay tuned - the wait can't be long now...
Alas so Canetoad- and inflation has been a threat all year and yet gold has continues to trend down since January :-(.
Yes I agree Tony, but on the flip side I was disappointed that benefits were not baked in- I expect a company to make the correct judgements on these sort of things- it’s like they said this is what we think will happen to AISC, and we have these things in the pipeline that will improve, but it’s up to you to decide if they will come to fruition or not eg don’t blame us if we are the higher side of the AISC as we told you this could happen.
I’m all for transparency. But I also want a better judgment of what they think will happen- it’s their company and they are best placed to predict these things - I was not happy with such a broad range.