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Hi Sotolo.
I don't know if I agree that 'a lot' of Centamin's current price has anything to do with trust but regardless the point of the presentation was to highlight (go to 14 minutes in if you don't have time to watch the whole thing) https://youtu.be/qp-XDdIAdvc the effect a 'hot' project can have on companies with contiguous land parcels.
New Found Gold has reached a market cap of $1.5 billion (for the last couple months) on some good drill results alone. No resource. No production. Just hope in the future that something will eventually get built. So when I hear somebody hypothesize Centamin is in some type of long term death spiral or in danger of losing investors at this stage I cringe. Centamin has really just started making money and has PLENTY of deposits just waiting to be exploited - and that's just counting the area around Sukari. Add West Africa & the new Egyptian concessions and Centamin will be making money for decades and decades.
Anyways, as a result of New Found Gold's drilling success the companies with adjacent parcels https://labradorgold.com/ & https://exploitsdiscovery.com/ have both skyrocketed higher - and that without any good drilling results of their own. (See chart at 15:30 minutes in)
Bottom Line: Egypt is essentially virgin territory not unlike Alaska or California before the gold rushes. When we start seeing drill results from other companies like Barrick hit the news (and assuming we now hold a concession in their vicinity) our share price could pop without any good news of our own. But of course 'closeology' is not the reason we long term shareholders are invested - just something to keep an eye on. Cheers!
Thanks for the link Cowichan. When I see the size of that new truck tray, I'm minded of Scots RFU player Gavin Hastings reputed quote having come up against NZ Jonah Lomu for the first time - 'there's no doubt about it, he's a big bu**er!'
Cowichan I don't think it as much investors taking notice of Centamin that is needed - quite a lot do for better or worse - but the company needs to start making some decent money again; at this gold price I reckon that our share of the profit after profit share and royalty will be about £80 an ounce or around £30million which would really deserve a valuation less than half what it is now, plus the company is paying out over 3 times that profit in dividends if I am right, and if it keeps its divi promise, so we badly need that dramatic improvement in costs and ounces promised for 2023....or with gold at these prices and lower the dividend will have to be greatly reduced along with the share price. Now if we could get costs including Capex back to 950 and ounces back up to 540k with gold at these prices we would be making £270 an ounce on 35% more ounces, so more than 4 times more profit. So a lot of the current price is still on trust it seems to me
Barrick's CEO makes the point that mining jurisdictions are so stressed financially that they've made many advance tax payments - including in the state of Nevada, USA !
Also, he talks about the large fund managers' demands for dividends and how it's going to be impossible for majors to grow/maintain output given lax investment in exploration
https://www.bloomberg.com/news/videos/2021-08-09/barrick-ceo-says-don-t-expect-more-production-growth-for-now-video
My 'all is not lost' commentary for an otherwise sad day in the markets...
A video discussing the upside of being in close proximity to new discoveries i.e. as the market discovers where Barrick has exploration targets in Egypt a whole new world of investors will take notice of Centamin, too.
https://www.youtube.com/watch?v=qp-XDdIAdvc
https://www.linkedin.com/feed/update/urn:li:activity:6830517946331234304/
The successful candidate will need to raise an additional $300 million AND be in charge of their social media strategy - wow, talk about a divergent skill set !
send your resumes here aleks.grela@lamancha.com
On Sunday Seaboy provided us with an update on what was happening in his hospital on the Synairgen Board. The situation with the Delta variant is far more serious than the public are being told here in the UK. Some of you may wish to read up what he wrote. Anyway I am staying with my gold miner holdings as I feel the market as usual is underestimating how the next phase of the pandemic could unfold. There is a reason why major USA companies are not having staff returning back into the office. It won't be long before large organisations in the UK follow them. Stay safe and well to all my fellow Centamin investors. Tony
Meet our new #HighProduction truck tray: the first of 44 to join the #Sukari fleet. Fabricated in Egypt by Aresco, this lighter weight tray increases productivity through larger payload, reduces fuel consumption & improves tyre life, lowering mining costs & emissions
https://twitter.com/CentaminPlc/status/1424649179222233089
Dogger
Your posts are of the same bull5h1t
Your post on the FXPO bb last year speaks for itself when the sp was 178p.
‘Can this go to 0. The game is over. ‘
FXPO are now trading at over 400p. Don’t tell me. ‘ I have still got them’. :)
Monday, 8/09/2021 15:25
GOLD AND SILVER PRICES stabilised from a flash crash to hit 4 and 8-month lows respectively at the start of Asian trading today due to low liquidity and Fed tapering fears, while oil slid further on concerns over new coronavirus related restrictions in Asia writes Atsuko Whitehouse at BullionVault.
Holidays in Tokyo and Singapore made for thin trading conditions, adding to today’s volatility!
The Dollar Index – a measure of the US currency's value versus its major peers – steadied after rising to nearly two-week high in reaction to last Friday’s US jobs report.
Ten-year US Treasury yields – a benchmark rate for government as well as many finance and commercial borrowing cost – slipped from the highest in 3 weeks recorded last Friday.
“Traders have been rattled by golds strange behaviour in recent weeks when falling yields failed to boost the price, while last week’s small turnaround in yields triggered an immediate and strong negative response,” Saxo Bank stated in a note.
No certainly not over , we've been here before and it is a Monday!
Take look at Razor's post earlier today, the Sukari atm is just undergoing some long overdue maintenance!
Is it over for CEY? Where is gold heading? Could we see CEY crash down through 90p?
The high level of government debt makes significant interest rate increases impossible.
Well China will have to make virtual cars and electronics from their virtual gold pile. They can distribute their goods via email.
Anecdotally, I saw the CEO of Rio Tinto mention last week on Bloomberg that China was massively short of gold for industry and electronics production.
ie. Senate discussing an extra USD500 Billion to be made for another Biden proposal.
Commodity prices / demand figs released on Wednesday. -Both of the above will likely show no it is impossible to raise rates for continued recovery and growth!
Senate also to discuss the new idea of taxing the Crypto's which should mean hard Gold/Silver demand picking up. The Gold Silver prices are already recovering from last week and we should be in a good position later this week -IMHO.
Buying volumes up 100% on 9 August over the highest on any one day last week that was 5 August.
Centamin Q2 profits surge; shares trading up
London-listed gold miner Centamin plc said that its second-quarter pre-tax profit rose to $73.4 million from $18.8 million recorded in the same period of last year, according to a report published on Wednesday. Revenues increased to $180.1 million from $124.2 million a year ago while earnings per share rose to $6.3 from $1.7.
The miner produced 140,306 ounces of gold in the three months to June, an increase of 12% compared with the previous quarter and 30% year on year. Citing a strong start of the year, Centamin upped its 2016 annual production guidance from 470,000 ounces previously expected to a range of 520,000 to 540,000 ounces. The cash cost of production fell to $461 per ounce during the second quarter from $706 per ounce booked a year ago.
The FTSE 250 constituent's stock traded up on the announcement, increasing 2.26% to £175.48 at 10:46 a.m. CET. Its shares soared 177.95% since the beginning of the year, with stellar gains following the Brexit referendum in June, as investors piled into gold and other safe haven assets.
Image: EPA / Narong Sangnak
Breaking the News / IB
Once again we find ourselves in penny-share territory. - Centamin after more than ten years of picking the low-hanging fruit and eating it, we are no further forward than we were ten years ago.- Some legacy.
Hello Sotolo,
To me it looks like the traders have been using Oil as an instrument of front running inflation. When you think it got to minus $40 a barrel at one point last year and its now still $100 a barrel above that level. Didn't Silver get down to $12 an Oz before it ripped up to $30. Gold has stayed above that 1 June 20 low which on the long term chart is bullish. As they say Bull Markets don't like passengers.
Hi Amthillmob,
Your comments are greatly appreciated!
You cannot beat a bit of monday morning cheer from Sotolo!
I was chatting on the phone to a friend the other night, talking about covid , lockdowns etc. It seems while people have been furloughed and getting 80% of wages for nothing, and not being able to spend it on holidays or going out, that they have been getting work done on their houses. Extensions, new bathrooms, kitchens, fencing etc.
Here are a few thoughts. Once the work is done, does that mean that the tradesmen will be is less demand? The same when people want to start spending on holdays and pubs and bars? Will they hit the credit cards again or will they be maxed out? Again, if they have all this work done now, does it mean that building materials that are in short supply now will be readily available in 6 months time?
Without setting Mr T off (please dont Mr T), I think we know that all this covid stuff is going to need paying for and we will be paying for it for a long time. Im sure a bit of "austerity measures" and "we are all in it together" will be coming.
We know that the government wants interest rates and inflation (reported not REAL) to stay low as people are in debt up to their eyeballs and a couple of percent rise in interest rates could push people into bankruptcy and house repossessions.
Anyhow , hopefully gold and Centamin will come good sooner rather than later.
We know that hindsight is a wonderful thing, but Sotolo, do you ever think that you would have been better starting to build your house? With property prices having gone up, cashing in your chips here and starting to build would have been a better option dont you think?
Hi Amthillmob,
Your comments are greatly appreciated.
Super I think the failure of gold, while other assets from houses to shares and lumbar soar, is both worrying and disappointing. It would seem there are so many more profitable places to put money that even negative real rates can’t help gold, you have been optimistic through gold’s fall this last year but sadly, although one day you will be right, I don’t think yet, as they say the trend is your friend or in this case enemy. Particularly hard for Cey, which now being such a high cost producer (I reckon around $1450 an ounce inc the extra capex) is geared about 5 to 1 to gold price so another 10% off gold would knock profits and thus value by 50%. I do hope you are right soon but as Kynes said "Markets can remain irrational longer than you can remain solvent.". Luckily Cey has $300m so can last loss making a while if it comes to that
Reports are that there is a shortage in the vaults and the orders cannot be met with a limited supply. Spot precious metals are currently responding positively - we should see a turnaround for the positive at this rate! Next prices to watch will be consumer price reports in Wednesday. All is not lost and I cannot see interest rates rising for some time whilst we have Delta in the wings!