Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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An interesting insight as to what the future holds for the US and $
Have a good weekend all.
Mortgages are still so cheap when compared to years ago. all that happens when interest rates are lowered is that the house prices, even for crap so called starter homes are inflated and overvalued by greedy developers ,estate agents and the building industry!
Mortgage News: Virgin, TSB, Yorkshire BS Cut Rates In Wake Of Bank Of England Signals
https://www.forbes.com/uk/advisor/mortgages/2023/09/08/mortgage-updates/
Hope it's not as bad as this- as I fear for anyone holding Centamin stocks
Https://news.bloomberglaw.com/bankruptcy-law/us-bankruptcy-tracker-courts-see-busiest-august-on-record
Now running at the same level as March 2020 and a few months before Lehman Brothers bank failure. Banks on the receiving end of $236B losses last month.
USA manufacturing is now in a full blown recession hitting GDP at -0.7%. In dollar term it could be a lot more.
Labour Dept fabricating NFP numbers to maintain high USD currency. Approximately 50% jobs said to be created are fake. Things may be starting to unravel. Bloomberg reporting in last hour trader caution now impacting the market. The façade is beginning to slip.
Mr T, thank you for your courtesy as ever
Hi Paul, I agree, although most BOD are just tike politicians they rarely if ever want to admit they got it wrong , they much prefer to kick the can down the road until fate forces them to change course and then they blame anything and anyone , but its never them!
Very similar has occurred with this now known to be unfit for purpose concrete problem in schools and other public building , just like at Sukari the developers saw using it as a way to make a bit more at less cost and the politicians went along with it because it looked better on the budget sheets in the short term, but now that cheaper concrete is going to cost an awful lot mote in the long term to put right,
The same applies for many property management companies and trust's that invest in all sorts of properties for rent or lease, its' called "Squeezing the asset!" by spending the absolute minimum on their routine maintenance, or routine waste stripping in the case of Sukari, they failed to maintain the ATM so it stopped spitting out cash!
To be fair similar things happen with estate sections in local authorities , I've experienced when rather than do a timely repair on the roof of a museum it was it was decided that by not doing it would save much over a period of years, unfortunately though the roof then usually falls in or the building gets so damp its unusable!
As you say some acknowledgement or thanks to long term investors by the BOD would seem to be more than appropriate!
Tibbs
Hi Sotolo,
Thank you for the explanation re HOC vs CEY , interesting, I take the point about inflation on Cey profits but in in my view that cost would have been far more manageable and less noticeable had it not been for staggering and drawn costs of the Sukari clean up combined with the erosion of market trust in the company.
The October 2022 and august 2023 double bottom has held this week.
Quite agree with Steve. What will turn our share price round is higher profits. For considerably higher profits, we need higher gold prices in real terms. Inflation has been near 20% over the last couple of years so that is near $400 that the gold price has to be higher to be the same in real terms! Ounces help, cost cutting helps but the big thing is the difference between costs and selling price, costs can be reduced a little but tough with high inflation and in real terms the management has started successfully reducing them, but the big motor has to be higher real gold prices. If or when who know, a pure gamble especially in the shorter term. We all remain full of hope….so yes add inflation to those comparisons
Tibbs and Tornado, the cey v hoc share price does reflect their relative performance.. Historically Hoc share price has been considerably higher than Cey, but over the last three years crashed below on even worse news than the Cey mine wall - a hard left government and potential withdrawal of their mining licence. This last year it has only recovered a bit for the shares to level peg. On capitalisation Cey is now worth nearly 2 ½ times Hoc. Before their respective tumbles Hoc was only ⅓rd less than Cey. It plunged to 2/3rds less, on political problems, so yes but all it has done in the last year is make a bit of a recovery as these have been solved but comparatively has done far worse than Cey over the last few years. Over 5 years Hoc is down 40% while Cey is slightly up. Last year’s performance figures are thus a bit of an aberration, as just as said making up a small bit of lost ground. Going forward, Hoc’s main mine Inmaculada has lower costs than Sukari and makes good profits, especially now it has permission again. Their still low valuation now is because Pallancata mine is closing and their new Mara Rosa mine , that comes on stream next year, is costing hundreds of millions to develop. They have had to borrow at the worst of times. Cey is the better company hence the far higher valuation, however imho Hoc is the better bet over the next two years as it should get back to near Cey production levels at lower cost, once Mara Rosa is on stream, but valued at a third of the price. I bought more when the permit news came through (All numbers approx)
I still think last 3 years is inflation primary cause- cey sell gold- if their costs of extracting it rise way higher and faster than the price they can charge for the product they sell, they make less money- it’s that simple.
Of course, this cost of extracting was exacerbated further by the additional waste clearing that still hasn’t finished since the wall issue.
And hopefully a nice fat "Sorry you all got shafted by the last lots dodgy operating" dividend, that does not come at the cost of cutting corners, artificial figures and 3 years of suffering to pay for it.
AND I think a nice " We have been through some difficult times at Sukari, but now, due to brave decisions and good practices, we are in a position to move forward and increase the amounts of gold we mine and the profits we make. I'd like to thank all long term holders for their patience and faith" from Martin Horgan would be a nice touch.
Equities in Europe traded higher in the premarket on Friday ahead of this weekend's G20 summit in New Delhi and after the release of Germany's inflation data.
The DAX gained 0.42% at 8:00 am CET. At the same time, the FTSE 100 rose by 0.12%. The Eurostoxx 50 rose by 0.36%. The CAC 40 grew by 0.28% at 8:07 am CET.
The euro gained 0.27% to the dollar at 7:58 am CET to go for $1.07251. A minute later, the pound sterling went up by 0.25% against the United States currency to sell for $1.25046.
Baha Breaking News (BBN) / DD
Happy Friday y’al
Enjoy your weekend.
Hi Tornado,
I agree with you, also with the completion of the excess waste clearance contract there should be be a very considerable reduction in CAPX whilst providing great improvements in operational efficiency, flexibility and safety!
All positive for market confidence building and increased profits!
Surveyed not survived !
Nope, hence the SP- you are underestimating inflation impact
400 companies are survived and a lot of seasonal adjustments are made because of holidays. Apparently Barbie and Oppenheimer raked in $8B in theatre takings apparently. Beyonce and Taylor swift concerts selling out probably aided by students debts repayment suspensions. Pharmaceutical prices were jacked up in August. If the FED are going to hike until they stop people going out completely seems a ridiculous club to hammer down services. In the meantime manufacturing is hammered for the 10th month in a row. The housing sector is slowing down fast. If they want a soft landing they need to look hard at the data. It has been a long time since two good movies were launched and if Biden pump primes young people to spend they will do so. With manufacturing now getting hit with higher oil prices, I think it is pause in September on rate hikes as they follow Canada's rate pause. I also think the FED are seeing what unions will do with wage claims and if they are high, the rate rise is more likely at the next meeting as somebody else gets the blame. Tony
Steve and other readers,
You are underestimating the innovations at Centamin such as a reduction of $120M in costs thus far and $30M more being delivered in the coming months. As a consequence the AISC has not changed in the last 12 months. There was a cost increase over 2019 by around $300 an ounce but the gold price was $1500 an ounce in August. The profit range was $600 an ounce say and today it is about $650. Production is likely to be is up say 10% in that time frame but a lot of benefits are unseen because of the additional stripping.
Tony
Gold is about where it was 3 years ago and yet the cost base, due to inflation, has risen massively-
Has the ounces increased to cover this delta? No
Probably when central banks,start easing rates.
or the dollar,goes into a downtrend
It depends who is in charge and what the agenda/objective is. - Don't assume that Horgan has hold of the reins. - The recent military-connection appointment is most revealing. - IMO.
Hoc is a cherry picked one- look at SRB, FRES and so on, and they've been poor performers too!
And do my eyes deceive me? It's a rise today! 86.65 close :-).
Hi Paul, relevant comparison of SP between HOC & CEY which seems to defy logic , Cey seems to be the better bet by far, so why doesn't the share price reflect that?
Likely due to several reasons, the number of times the previous mana, failed to deliver and it has now been proven they deceived the market and shareholders about the true state of Sukari for a number of years which has almost totally eroded shareholder confidence and market trust!
Any restoration of market trust will e dependant upon actual proof, rather than just future predictions as in the past!
Reducing AISC , but more importantly CAPEX for the waste clearance should help boost profits which if sustained should help restore market confidence in that unlike the old management the new management are truthful and know how to run a mine properly!
A random, out of the blue offer of £1.50 per share for the company.