Centamin PLC Share Chat (CEY)

Leaving my personal opinion aside a summary is given the 2017 end of year report.
Concession Agreement court case
On 30 October 2012, the Administrative Court in Egypt handed down a judgment in relation to a claim brought by, amongst others, an independent member of a previous parliament, in which he argued for the nullification of the agreement that confers on the group rights
to operate in Egypt. This agreement, the Concession Agreement, was entered into between the Arab Republic of Egypt, the Egyptian Mineral Resources Authority and Centamin’s wholly-owned subsidiary Pharaoh Gold Mines, and was approved by the People’s Assembly as Law 222 of 1994.
In summary that judgment states that, although the Concession Agreement itself remains valid and in force, insufficient evidence had been submitted to Court in order to demonstrate that the 160km2 exploitation lease between PGM and EMRA had received approval from the relevant Minister as required by the terms of the Concession Agreement. Accordingly, the Court found that the exploitation lease in respect of the area of 160km2 was not valid although it stated that there was in existence such a lease in respect of an area of 3km2.
Centamin, however, is in possession of the executed original lease documentation which clearly shows that the 160km2 exploitation lease was approved by the Minister of Petroleum and Mineral Resources. It appears that an executed original document was not supplied to the Court in the first instance.
Upon notification of the judgment the group took various steps to protect its ability to continue to operate the mine at Sukari. These included lodging a formal appeal before the Supreme Administrative Court on 26 November 2012. In addition, in conjunction with the formal appeal the group applied to the Supreme Administrative Court to suspend the initial decision until such time as the court was able to consider and rule on the merits of the appeal. On 20 March 2013 the Court upheld this application thus suspending the initial decision and providing assurance that normal operations would be able to continue whilst the appeal process was under way.
EMRA lodged its own appeal in relation to this matter on 27 November 2012, the day after the Company’s appeal was lodged, supporting the group’s view in this matter. Furthermore, in late December 2012, the Minister of Petroleum lodged a supporting appeal and shortly thereafter publicly indicated that, in his view, the terms of the Concession Agreement were fair and that the exploitation lease was valid.
The Minister of Petroleum also expressed support for the investment and expertise that Centamin brings to the country. The Company believes this demonstrates the government’s commitment to the group’s investment at Sukari and the government’s desire to stimulate further investment in the Egyptian mining industry.
The Supreme Administrative Court has stayed the Concession Agreement appeal until the Supreme Constitutional Court has

I am currently interested in investing here. I like the fundamentals (despite the huge amount of cash not being put for better use). I have read the financial statements, however could someone please provide a short summary of the current court case and its latest development?

Whoever has been giving the Shipments , please continue to provide this. Certainly it gives a very good insight into what the mine is producing. Only when we see around 450kg /week consistently, it would be reasonable to expect a target of 150,000 oz/Quarter. 410Kg/wk consistently would hit 135,000 oz range. That would also indicate that Centamin mine profile has actually hit sulphide strata. Please do not rule out shipments.

With cey there are three camps.
1. Trapped traders
2 Long term investor
3 Institutions, of which there are many, contrary to popular opinion.

After hours trading tonight was large volume in comparison to the norm .ie 3 months ago.
So the SP will be volatile for a while, Tommorow especially.

But the reallity is ,in mining there are always unknowns , the earths crust was formed from fire and earthquakes .
That is why mining anything is speculative.And dangerous.

But as Cowichan said Centamin will probably still be mining in another 50 years in Egypt.
Still making a profit but not without the occasional blip as of now.

A strong bounce off the day's low 108.35p, a close only 0.20p lower than the 21/6 close at 114.10p, the lowest close in 2 years, and a thorough flushing out 20.5m shares volume. I bought this morning at 110p because I like a bargain and I have struggled to answer a question.

Who is going to keep selling CEY at these ridiculously cheap prices ? Was today the final tree shake ? As we enter the seasonal upswing for gold I believe that our fortitude will be rewarded.

Thank you for you appraisal of the situation.
As you may have gathered I am no shorter, although I am very angry and feel the management have failed with honours on this !
1. They knew well in advance about the geology and many of the issues are outside of their control to some extent.
2 The complete failure to mitigate risk to the underground production plant and process was lazy,unprofessional and inexcusable and some ar(ses should be kicked!
3.I know the legal process in Egypt can be lengthy, our court case is comatose!

I would love to see a £100 million share buyback that would send a strong message

In the light of the recent problems at Sukari and the subsequent drop in company value and share price many long term share holders feel that it is time that the management took our concerns to heart and supported the share price at every opportunity.

The recent production and geological problems at Sukari are very unfortunate, the effects of which are not only felt financially, they are also confidence sapping to existing and off-putting to potential investors, but this situation has presented a great opportunity for the company initiate a share buy back!

A share buyback now would send a clear message to the markets, existing investors and potential investors that the management board is confident in its strategy and for the long term prospects of Centamin and Egyptian gold mining.

The share price would certainly be invigorated benefitting the company and the share holders!

A new dynamism is needed from the Centamin management to restore the value and credibility of the company, the faith of the share holders, not to mention the future guidance for Sukari!

Yours Sincerely

Tiger by the tail You need to understand that in mining once you are through to the rich vein the grades will pretty much instantly improve. It is perfectly reasonable that they now will be mining the sulfide ores for the next few years and hence the grades will improve dramatically and as soon as they start. This will give vastly different results to the last 2 Qs. We have mined 150000+ oz/Q last year so perfectly feasible we will do so again. These management have an excellent track record of delivery and even now have been caught out by machinery failure but will come good with time. I think we may have a few shorters on here playing games.

What an opportunity this is if our management board would take it!
It would send out the right message to the markets that the management board s confident in it's future strategy.and the long term prospects of the Egyptian business
The share price would certainly rise!
The benefit would be felt immediately and for the long term by share holders!

maybe this blip will work in our favor - management should take our concerns to heart and support the share price at every opportunity - and wow is this an opportunity

Cowichan agree but don't get me started on sbb. Why pay the dividend when they could pay less divi and show the world what they think the company is worth.

It's time management fought back - share buyback!

Funny that drop on Friday eh, you would almost think some had prior knowledge of how the report this morning was going to be, or am I just being cynical? ATB

Sadly it wasn't enough so they slapped it down some more this morning for good measure!

You'll be lucky!!

i was unable to get connected, or my cAll answered by the switch board so I let Buchon PR know ,

They replied below

There is a audio play back available – see details below.

There were many participants on the call.

I wish to also flag that the EMRA split is currently 55:45.

Centamin will be announcing their Interims on 2 August.

When it falls below 1.00, it will be time for a large top-up.!!

Nearly a third of the value of this company has been sold off because of 1q with a 25% reduction in output on a 20 year mine. Furthermore the gold bull market is just getting started and will push revenues up when it really gets going. This is a good buying opportunity to average down for sure!

Totally agree.
The huge advantage cey have is plant and machinery already in situ should the cc be resolved as one day it will be

It's curious to note that stoping grades were lower than development grades - it's both good and bad I suppose - more gold where you didn't expect and less where you did -

Ore mined from stoping was 180kt at 4.61 g/t

Ore mined from development was 109kt at 4.64 g/t

Cheer up folks - the sheer volume of gold at and surrounding Sukari will ensure the area is mined for the next 50 years -

So IMO the talk of abandoning one's investment over a poor quarter is infantile... but separating emotions from investing is tricky business

The figures & statements I quoted were based on the information obtained from Halifax Share dealing website & not from CENTAMIN website. I believe they project the same numbers.

The figures & statements I quoted were based on the information obtained from Halifax Share dealing website & not from CENTAMIN website. I believe they project the same numbers.

The figures & statements I quoted were based on the information obtained from Halifax Share dealing website & not from CENTAMIN website. I believe they project the same numbers.

Hi Ton-fra-cen!
Yes, very much what I was thinking. It's a big ask to improve the feed grades so much so quickly in order to achieve current full year guidance. I also fail to understand how the grade control drilling could have gone so wrong.
This is subjective, but IMO management coming across as flaky and frankly not up to the job.
They say bad news comes in threes, so I'm expecting the share price to suffer more when the full quarterlies are released next month. Headline AISC is going to look horrible. And there must be a question about the interim dividend.
I'm one of the lucky ones here: I sold out entirely at about 160p recently, and then only bought back a few at 120p-125p. For now, I'm not tempted to add more.
In the normal course of events Centamin would now get bought out by a major looking to add production ounces and reserves. And that would be good - because better management is desperately needed here. But, unfortunately, the court case will almost certainly put off any potential purchasers. And so this unsatisfactory situation goes on without a resolution.