The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Cowichan, the report from Aton mentioned nothing about Mr. N. Sawiris and the investments with them but t.edv takeover also mentioned "Abu Marawat is over 596 km2 in size" which is almost 4 time area of cey.
Thanks for pointing that report.
GLTA,
Dan
Thanks Siko
Is that 1% part (for local peoples) of the 5 %, or an additional 1% royalty.
If a company operating in Egypt, opts to finance some of its operations through creating an additional royalty, this could be a royalty too far, making the investment proposition marginal at best, and certainly a lot riskier, in terms of margin for error for an operation. Given the predilection of Canadian companies to use royalties and the general lack of investment appetite (generated by appalling returns on average over the decades) in exploration in the Canadian Markets, especially foreign exploration, my guess is there wont be a lot of Canadian companies coming into Egypt and running amok (probably a good thing?).
Some interesting perspectives on royalties at
http://im4dc.org/wp-content/uploads/2012a/01/UWA_1698_Paper-01_-Mineral-royalties-other-mining-specific-taxes.pdf
The state as an exploration concern has not been shown to be a viable mechanism for efficient and effective exploration over the last 5 decades, and have been shown very amply by the likes of the Normandy Mining/BRGM (French Government) example, to have inferior knowledge of the private industry, and hence produce inferior outcomes for the state and the tax payers.
https://www.intelligentinvestor.com.au/recommendations/normandy-digs-the-deal/48287
I have always liked this piece of advice.
"But be forewarned: The vast majority of exploration companies are faint-hope propositions, giving the junior space some of the worst odds for investors outside of a lottery ticket. Most companies will never pan out.
"You're probably looking at about 2 per cent [that develop a mine]" says Michael Fowler, mining analyst at Loewen Ondaatje McCutcheon Ltd., a brokerage house that specializes in junior companies. "So that's your chance."
If the Junior exploration space is a shot in the dark,
spare a thought for state run exploration, when there are no success stories. Smells like a group of economists from the world bank on another Davos inspired theoretical outing, who failed (yet again) to learn from history (not to mention common sense)
Far better to serve and regulate the industry than compete with it.
“60% of gold demand is as you know, from love, and the best way to look at it is China and India,”
Lets hope there is a fair bit of love in the air this year (more productive than missiles and insults)
best
the gnome.
Thanks Siko!
I noticed Aton Resources had these further details on their website:
They have outlined what royalty’s apply to which mineral, so Gold is 5%, Copper 8% and Zinc 6%. Also, there will be a 1% Governate Tax added to this. The rent during mining is LE 25,000.00 (as of today $1,500.00) per square kilometer. Though this amount could change many times between now and when a mine comes into production, as could the royalties, with 5% being the minimum.
But the PSA is officially dead and they have instituted a policy based upon tax, rent and royalty, which is a huge win.
As we have been told, the actual details of the terms and conditions of the exploration period, will come out in what are called the "special regulations”, which sit within the ER’s the Ministry and Wood Mackenzie are working on now. As we understand it, there will be a bid round on certain areas, that EMRA believes they have good data on. After that it will go to a first come first serve basis for areas selected by exploration companies. I believe that those "special regulations" will be out within the next month.
------------------------------------------>>>
My Thoughts:
So the 'production share agreement' is gone!
I know we all have our opinions on this but it is possible Centamin will sign a new contract under these new improved terms for Sukari , as long as both parties agree.
That is the only fair way forward in my opinion. To do otherwise would be like having a subsidy for every other miner or a surcharge for Centamin alone. Impossible.
https://drive.google.com/file/d/1FZJpo0UFc742nA9z2BUm4YX_FNPcDnBk/view?fbclid=IwAR2U0PbbX0v_tanil7AVAosYge2mFFjAlrxdu-B_aAUBgpMaTkxX75T9Df0
I managed to get the full official copy of the executive regulations of the new mining law. Unfortunately I only have it as a PDF file in Arabic which I posted the link to it.
The main points to mention are:
EMRA has the right to form or share a company for exploration and exploitation, either solely owned by EMRA or in partnership with others UNLESS IT IS AN AGREEMENT BY LAW.
Gold royalty is 5% from annual production.
1% from annual production is for local development (local schools, hospitals, etc..).
These were the only financial details in the executive regulations.