Centamin PLC Share Chat (CEY)

Gold surges to 10-month high on trade optimism

Precious metal traded higher on Monday as gold soared to the highest level since April 2018, selling at a session-high of $1,327.62 per ounce.

The price of the precious metals was boosted by hopes the United States and China are nearing an agreement on trade. US President Donald Trump praised the "big progress" made during recent high-level talks in China. The negotiations between the world's two largest economies are set to resume this week in Washington.

The yellow metal rose 0.48% to sell for $1,327.61 per ounce at 2:48 pm CET.

More to come...

Breaking the News / NP

Hi goldnome - So, America has handed the crown over to China. - HSBC U.S. operations was/is the central hub of drug-cartel operation in the Americas. They were fined $2billion under civil law proceedings, not criminal mind you, as a result keeping 90cents of every dollar-gain. - It's a wonderful world. - The big question isn't who's into it, but rather who isn't?

https://www.riskscreen.com/kyc360/article/china-emerges-as-money-laundering-hub/

A potted history of gold mining and use of capital .... and thanks goodness for accounting

Goldcorp bought Cerro Negro for $3.6bn in 2010 but had to write down the project by $2.3bn in 2015. The mine is located 600m above sea level in southern Argentina.“When we look at Cerro Negro we see the opportunity to bring some of Newmont’s operational expertise to bear, we are quite excited about the exploration around that region,” he said.

>>>The 16-member Shareholders’ Gold Council, which was formed last year to promote the interests of gold investors, said Goldcorp’s CEO, David Garofalo, had been “massively overpaid” since his appointment in 2016 and now stood to garner $8m due to change of control provisions in his contract. Shares in Vancouver-based Goldcorp have fallen by 26 per cent under Mr Garofalo, while he was paid over C$16m in aggregate compensation in 2016 and 2017, the group said.

...>>>>Newmont Mining Corp said on Tuesday it is likely it will record a non-cash impairment charge of between $1 billion and $1.2 billion in the fourth quarter related to an increase in the estimated cost of closing down its Yanacocha gold mine in Peru.

>>>>Barrick Gold Corp. (ABX.TO) has reported a net loss of US$412 million for the third quarter, well below the US$99 million in net income expected by analysts, after taking a US$405 million impairment charge at a Peruvian mine. The Toronto-based company took the writedown at Lagunas Norte after results from a study on a type of ore treatment led it to shelving the treatment option.

>>>Barrick Gold releases Q3 results.They come with a significant write-down. Increasing problems in Tanzania are also mentioned.The merger with Randgold remains the major positive catalyst together with recent downside in U.S. stock market which lifted gold plays. Barrick Gold shares has given notice it will write down $3-billion US of assets, including mines in Chile and Argentina as gold prices remain depressed. Barrick says it will be writing down the value of its stalled Pascua-Lama mining project on the border of Chile and Argentina and its Pueblo Viejo gold operation in Dominican Republic by a total of between $1 billion and and $1.2 billion.

The capital write downs in the gold industry are massive. It does make you wonder whether any of them make much money...before best practices accounting ....and paying over the tops for CEO's who do this...good luck investors, not the smartest industry ....
Centamin has a great balance sheet, has been reasonably disciplined, and if they play their cards write in their treatment of investors, will all do very well
best
the gnome

Europe higher in premarket on trade deal hopes

Markets in Europe traded in the green during the premarket trade on Monday as investors remained hopeful that the United States and China will reach a trade deal after US President Donald Trump said that a lot of progress on different fronts is made in trade negotiations with Beijing. The European stocks followed the sentiment in Asia while the US markets are expected to remain closed today for Presidents Day celebrations.

The DAX rose 0.33% during premarket trade at 7:53 am CET while the CAC 40 gained 0.19% at the same time. Meanwhile, the FTSE 100 added 0.10% at 7:52 am CET.

The euro increased 0.12% against the US dollar to sell for 1.1311 at 7:54 am CET while it fell 0.05% against the British pound to go for 0.8760 at 7:54 am CET.

Breaking the News / VK

+ 0.17% + $2.23 $1323.42

High of the day $1325.37

Thanks for sharing Cowichan, much appreciated.
Interesting reading.

For those who wish to see what might be in store for us in West Africa, see pages 64+ on this link...

https://s21.q4cdn.com/954147562/files/doc_presentations/2019/02/190204-EDV-Corporate-Presentation-vf.pdf

Endeavor outlines Ity project metrics as it transitions from a heap leach operation to a CIL plant: annual production approx 200k ounces; AISC $600; initial capital cost $350-400 million; Construction timeline approx 12-14 months; 4Mpta mill ; central plant with deposits clustered within 5km radius; ore mix & grades similar to Batie & Doropo

As one can appreciate there will be variations aplenty with regards to water availability, strip ratios, etc. but it's still worth a look...

https://uk.finance.yahoo.com/news/price-gold-fundamental-weekly-forecast-120218204.html

Tiger

The lack of reporting and progress after such large expenditure is a flag. Compare with progress and reporting in CdI.
Suggests project marginal?
Board decision: What capital do you deploy in a new jurisdiction for a marginal project. Especially when there are other good options.
This does not imply the project is uneconomic, but rather does not meet investment criteria.
So perhaps divest to a company that can make money out of this project, recoup some sunk cash, expose to project cash flow by deal construct, so divestiture would have a capital return and equity (in new company) component.
So if they got it wrong and project was derisked and did meet roi, they could buy the newco back? Or sell out at higher roe.
perhaps newco is a NEW company, and they can get a good bargain as a cornerstone? Pehrpas newco has the right people such that the project, right people etc in NEWCO and project geeration capability sees the birth of the next Randgold...or something like this.

its about how a company uses its capital as a function of roi, roe and risks. As commented on previously the mining industry is not good or disciplined in this area

cheers
the gnome.

PS I maybe wrong about this, it has happened before! Looking forward to Feb 25 .... quietly v positive.!

Hi Cowichan!
I fully agree with you on this one.
Given everything, any divestment of Burkina Faso would be a real head-scratcher to me.
I imagine we'll find out what's up with BF on the 25th!

Gnome Interesting I haven't heard anything about divesting.

Hi Cowichan - You make a very good point. - What a turnaround in 6 months. - Mind you, there is a history of a such about-face action with this lot. - In the blink of an eye, as the saying goes. - As an investor I have to trust them of course, but I'm not comfortable with it. - Let's see what Feb 25th reveals. There may be light shed.

Yes, most curious. V curious no resource upgrade after a very large expenditure. Lets see how this plays out.

That's a curious statement.

Last August management released the following statement which indicated they finally secured the land package immediately adjacent the Konkera deposit (Amimbiri), which was critical to proceeding with development. They also indicate further "exploitation" licences are being requested. Hardly the plans of a company wishing to divest. (Also, the drill results and sheer scope of deposits at Napelapera and Wadarado are better IMO than those discovered in Cote D'Ivoire.)

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

As part of the ongoing review of the project, two exploration permits were relinquished during Q2 and notification of granting of the Amimbiri permit was received. The Amimbiri permit surrounds the northern extension and western border of the Konkera exploitation licence area. Amimbiri replaces the exploration grounds of the previously converted Tiopolo permit. A further review of the land holding will be undertaken as part of the scoping study, which may result in applications being made to secure additional exploitation licence areas and, if appropriate, relinquishing further exploration permits.

With desktop work being undertaken, with the assistance from Cube Consulting, exploration work at Batie West during H1 2018 focused on trenching, geochemical work and Aircore reconnaissance-drilling with a view to identifying strike extensions and potential secondary gold structures alongside the principal deposits in Konkera and Napelapera and generating new targets for additional near-surface oxide mineralisation in peripheral permit areas.

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

So as you can see a divestiture of Burkina Faso holdings at this late stage would run contrary to what they have disclosed to shareholders

Very encouraging buys after 16:35 !!! Suggests something positive is brewing . GLA

Lookng at the results in more detail, they seem to be very good. Resuts from CdI are paying for the Ampella Mining Investment, and the rumour is that they will divest the Burkina assets, as theyhave not been able to generate the sorts of returns they want on investment. Be interesting to see who they divest to. It looks ot me that the project needs more oxide dirt, so the incoming company shoould have proven capability to find oxide in the Birrimian covered by laterite as starters ... a little different to Oz ...

I think witht he announcement of a good dividend, they SP will motor along very nicely...

cheers
the Gnome.

In regards to mine development in West Africa some of us have made comments extolling the benefits of employing as many local workers as possible, which obviously makes a lot of sense.

Perhaps management sees an opportunity to buy a smaller established producer in Burkina Faso? This would definitely help in the construction and commissioning stages of Batie West.

As an added bonus Roxgold has just recently picked up a whack of exploration properties in Cote D'Ivoire from Newcrest

http://www.mining.com/newcrest-sells-cote-divoire-project-canadas-roxgold-30-million-deal/

Roxgold's current 150kpa operations in Burkina Faso are profitable and not too distant from Batie West for employee training purposes, etc. Who knows, maybe we'll see a RNS come Monday!? lol

https://www.roxgold.com/about-us/leadership/default.aspx

And oh ya, Iain Cox, the current interim Chief Operating Officer at Roxgold Inc. used to run the underground at Sukari...

In my thoughts this is the start of good news, feed the good news slowly and cautious as per usual. But after last year still looking over my shoulder.

https://www.bullionvault.com/gold-price-chart.do

Berenberg Cut to hold think this is out of date already it must have been written before the new news

It’s weird that it sounds like trump is been converted to kingship by the Chinese wait and we may see elections are against the public good so that makes me king and it’s a really good thing

Closed-periods apply 1 month before quarterly announcements and 2 months preceding finals/annuals. So, by my reckoning, directors will have a small-window of opportunity after the 25th within which to either buy or sell shares before the 1 month qrtly. restriction kicks-in again, covering the quarterly reporting period ending March 31st. - Watch this space.

Hi ton - Yes, I agree with that. - If the 25th turns-out to be a good news day, it will indeed be an additional bonus. - If it turns out to be so, it will go a long way to restoring my confidence in management and for what the future holds.

DA SUT - A three-miner! - Wow! - That would be some launching-pad. - In such circumstances, our P/E could be on a par with what Randgold's used to be.

I think we are talking more than two mines as whilst ABC and Doropo are in Cote D' Ivoire they are a distance apart so even better news as it is two additional resources.