Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Yes MrT .
I clearly remember all of that tragic fiasco.
And remember the Contractor mainly responsible for the emergency , the emergency shut off valve not functioning.
Who made it ,Halliburton.
There fine for them was minuscule , because of links and friends in US Government and being a military contractor.
The American way.
Hi Mr Bond, I well remember being invested in BP, utter pants of a company , very poorly managed, they too failed to managed their contractors properly and it led to the Gulf of Mexico Deep Water Horizon disaster The oil spill response plan that BP submitted for all of its offshore operations in the Gulf of Mexico would be laughable if it hadn't led to an environmental and economic disaster.
The plan talks about protecting walruses, sea otters, seals, and other Arctic wildlife that don't live in the Gulf but contains no information about currents, prevailing winds, or other oceanographic or meteorological conditions.
The plan also listed a Japanese home shopping website as a primary equipment provider. Yet BP claimed its plan would enable the company to handle an oil spill of 250,000 barrels a day—far larger than the one it so clearly couldn't handle after the Deep water Horizon explosion.
https://www.liveabout.com/deepwater-horizon-facts-1203711
BP also had its pants pulled down by Putin and co , they didn't like good old Bob Dudley, well he was a Yank and an utter Toss Pot!, so BP and got kicked out of Russia!
There will not be any Buyback.
It does not fit this Business Plan.
The money will be better used in expansion. Much expansion and prospecting.
I Remember BP Oil doing it. All it did was to artificially raise the SP, for a while, take a look at where they are now, back down.
I heard Martin in a presentation that they would look to see what is best at the time in future Im sure
Buy backs have been banded by this board for 6 years and never happened...!
Thoughts on dividends vs buybacks at this level? I would prefer buybacks right now!
Pleasure prof - I felt like I needed to get it off my chest!!!
Adamsmith,
Love your post which echoes my thinking exactly - just put more succinctly than I ever could!
Best wishes,
Prof
This is going to be a big deal. - I wonder if Centamin will own this asset or will it pass to EMRA as other assets have.
https://twitter.com/CentaminPlc/status/1418157846924079106?s=20
Excellent discussion here. Dissenters are essential to get people thinking and debating. I'm not interested in a cult or share fan club. Investing is not easy otherwise we'd all be millionaires but here are 3 big points I'd like to make:
1. commodities ex Iron Ore are all out of favour and the smaller the company and more obscure the production site(s) the more out of favour. Gold is particularly neglected pretty much every junior goldy has bee caned! I note Sotolo has sold some CEY for THS. An excellent idea in theory but as a fellow THS holder he has my sympathy for recent falls.
2. The previous CEY management were as best incompetent at worst crooks. They basically trashed the mine to keep the big lie of effortless profits going for as long as possible. The new management seem to be doing the hard yards i.e. shifting dirt at a great pace. New practices workstreams etc appear to be making an impact in all aspects of the business but it takes time. Mr Market is behaving like a jilted lover and will take time to come round.
3. Gold must stay high whilst management of CEY wrestle the costs down. Keep a weather eye of 10 year US treasuries. The inverse relationship between yield and POG is pretty eerie. The other thing that could sink gold - that barbarous relic - are modern virtual alternatives Bitcoin, NFTs etc. There's a generational war going on with millennials shunning the physical and buying the virtual. There is no law that says gold maintains its role in finance even with thousands of year's of history behind it. If Dogecoin is treated as a serious financial asset despite it being originally invented as a joke, the under 30s could screw us all, so long as they don't run out of pocket money with which to speculate...
Sotolo,
I find it hard to disagree with any of the numbers you predict there, all sounds very logical and reasonable view on things. I am still hoping for a sustained rally in Gold and Silver. The world is addicted to QE and low interest rates. The value of Classic cars, first edition books, whiskey, wine, art has rocketed. I was looking recently at the M3, M4 money supply increase and noticed how it matched house price increases rather well. Just need the PMs to follow.
Thanks Sotolo. I think I put up last week that if the price remains around this level until after the next dividend, I wont be too bothered as it willl mean more shares for the reinvested dividend. After than I'll probably take the dividends in cash as I need to live! You would think that with all the money printing and the actual, rather than reported inflation figures that gold would be on the up. I'm crossing my fingers for a decent dividend this time and better news and higher gold prices along the way. There seems to be a bit more of the getting the basics right since Martin Horgan took over. Again, fingers crossed that the new areas work out and either the other assets come on line or get sold for a decent price/ AND/OR some sort of partnership with them.
Hi Prof - A reasonable summary I think. - The markets are very wary when it comes to Centamin. - Q3 will be the test as it usually is. Q3 results is when it all comes out in the wash. It's truth time, the time when we discover how misleading or otherwis, the forecast has been. - A steady as she goes or better Q3 and it'll help steady the ship I feel . - Not sure whether W Africa is good news or not. - I'll wait for Cowichans appraisal.
Why I think this report is great:
I will compare quarters as comparing with last year would not be meaningful. (The table in the RNS is where I get my information)
Q2 2021 Q1 2021 %
Processing
Ore processed kt 2,804 3,018 (7%) We are 7% down on ore processed (Fact) )
Feed grade g/t Au 1.19 1.16 3% Our feed grade is 3% better (+ve)
Gold recovery % 89.3 88.6 1% Gold recovery is 1% better (+ve)
Gold production oz 100,228 104,047 (4%) Production down 4% but ore processed was 7% down. This means gold production is up by 3-4% (&% down , but feed 3% beter and recovery is 1% better )
Cost & Sales
Gold sold oz 97,229 106,573 (9%) Analyze closely. This period (Q2) we sold less gold than we produced =2999 ozs in stock. But Q1 sold 2526 more ozs than they produced. So when looking at financials we must be recognized that there is a discrepancy like for like of 5525 ozs, in favour of previous quarter.
Cash costs US$/oz produced 883 733 20% It is what it is , dont know why.
AISC US$/oz sold 1,290 1,091 18% Yes, ASCI appears to include capex and we have been spending capex
Realised gold price US$/oz 1,822 1,778 2% Great- that's the market, CEY can influence this by not selling if the price is unfavourable, they dont need to,
Revenue US$m 177.5 189.9 (7%) Down 7 %, but we sold 9% less gold, and Q1 had the extra 2526 in the sales figures (selling more than mined so Q1 was artificially high) ALSO, We have mined 2999 ozs more in Q2 than sold.
CAPEX US$m 41.3 37 12% Makes a difference to AISC as capex included.
Free Cash Flow US$m 6.9 9.4 (27%) And we have 2999 ozs unsold in Q2, and Q1 sold 2526 ozs more than produced in period. (That 5525 oz discrepancy should be considered here .. e.g 5525ozs at $1822 = $10M difference (+ve)
Now read the top line again, we are 7% down on ore processed which should have depressed everything by 7%. Now what exactly is there in here that makes one think this is not good.
Paul you are absolutely right, but I didn’t foresee the wall collapse, and the very dramatic result with oz down nearly 25%, aisc up 30%, and cash flow falling nearly 90%! Also I said Cey £3 if gold goes above $2200 which I thought it might, given falling real interest rates and rising inflation. However this was tempered by my usual scepticism, if less, and a year ago this week I posted: “Prof Tiger etc, yes great times but amidst such wonder my thoughts are already turning to when do we take some money off the table, or not, as timing is so hard. I see a few hundred dollar correction in gold that has risen so massively, I always thought it would be around 1900, which we have amazingly reached. Now I think it is more likely around 2000, which may be a struggle to break, or most likely a little above 2100, by which time Cey should I reckon be around 300. So I think I am going to be brave, nay foolhardy and wait till Cey hits 295(if ever) when I will take 20% off. I am sure others will be trading much sooner, even now, what are your thoughts and please all do tell when you do, and reasons. Or is this a false dawn when we look forward to huge profits and unpredictable gold will hit us again”.
Incidentally I am down to 461k Cey shares, wonderful Tiger having recommended Tharisa I have dripped the remainder there (and to Hoc that has been nearly as bad as Cey with political surprise)
Sell on the news brigade
Kalimera,
Don't worry about that, it is Thursday and Centamin always goes down on days with a 'y' in them.
Gold has just fallen c $10 so suspect that is the cause of Centamin falling off after a positive start. Would have liked to believe the lack of anything negative in the latest update would have been enough for a slight move up today but to me the important thing is that the new management seem to be getting a real grip of the company and putting right past shortcomings. The market had lost confidence in Centamin's eternal 'jam tomorrow' and disappoint updates.
Such great results and minus the SP ?
Sotolo. around this time last year, when the share price was over £2 , you were prediciting £3 in the not too distant future. As we know, the STUFF hit the fan and the price took one hell of a kicking. Assuming a few things (dangerous , I know) (1) That the removal of waste goes to schedule or better (2) because of this, costs go down and production goes up (3) gold price remains around this level or maybe up to $1900 , what would you expect the the share price to be then? I take it you still hold over 600.000 shares as i couldnt see you selling them after halving?
Glyn you are a real gent like so many on this board, and I like you wouldn’t be here if I didn’t believe better times are coming, I think the good news is if our shares don’t take a tumble on these figures or more important the August interims, nor the second half which they say will be worse with deferred capex, but that the share price looks forward to 2023 as we do.. and of course gold moves out of these doldrums up not down.
Sotolo, I owe you an apology then. my words were a bit harch, if I could edit it I would say your words echo your disappointment in the share price for such a great company that is cash-rich, debt-free, dividend-paying with a plan in place to get it back to 530,000 ozs of gold mined which used to command a share price of double today's price less than a year ago. And future mining costs are also reducing with better management, and solar plant coming online. . Then there are the exploration licenses and prospecting elsewhere that could and should add value, but that's speculation to me . I like the security of knowing that management is on point, the plant is churning out gold, at a price that makes a profit, and produces dividends.
I don’t have any agenda other than wishing, as still a fairly large shareholder, that the 2023 better new begins to affect us positively, and reporting what the managements figures say.. So very pleased with your positive view, tho wish you would add your interpretation of the specific figures, my view was not negative, in fact hoping the shares would pick up as the bad news expected, but also the new concessions, and 2023 nearing, sadly however they all seem baked in the price so maybe not yet.
"Strong balance sheet with no debt, no hedging and cash and liquid assets of US$312.1 million, as at 30 June 2021, after US$34.5 million dividend distribution on 15 June 2021" People are fixated on the daily price of gold - but look at out cash and liquid assets. That's a years coverage of mining cost, if the gold price was temporarily unfavourable, CEY don't have to sell it, and can hoard it for up to a year waiting for a more favourable price. Other miners have debt to serve, and have to sell whatever the price to serve the debt. CEY does not - what a great place to be.
All seems good..
19 licenses with up to date taxation agreement.
The share price should bottom out from here.