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OK I am not sure where you get the information that the contract wasn't tendered other than by Capital.
Are you aware given that you have the information that I don't have what the cost per tonne or cubic metre was for the total contract period?
Rebess where do you get the information that the equipment was leased because I very much doubt this to be the case given the cross border nature of such a transaction?
Yes Centamin know how to move waste material and I haven't said that Capital or any other contractor know better or that Centamin don't know how to move waste.
What I am saying is that Centamin don't have enough equipment to move what is an abnormal amount of waste over a relatively short period of time (although feels like an eternity) and maintain production and the normal mining waste that comes with mining in an open pit.
I have already said that I am not happy with the SP being halved BUT even though I have many years experience having visited and discussed material movement with senior managers in large and small mining concerns, also discussed the predicament at Sukari with current mining and equipment professionals, can't come up with an alternative solution other than a major cut back/waste material blitz.
So given the waste needs to be removed the question is do it yourself or get someone else to do it.
Horgan has already answered that question and basically it is doing it themselves wasn't cost effective as at the end of the 4 years the equipment would be owned by EMRA not Centamin/Pharoah Gold. I don't know the detail of the EMRA/Pharoah Gold contract but if we accept that Centamin doing it themselves over 4 years then writing down machines over 4 years becomes way more expensive than the depreciation that would normally apply to such equipment.
So it isn't that Centamin doesn't know how to move waste of course they know how to move waste but in this instance they can't use the existing valuable resource of equipment and people to move the abnormal waste AND maintain mining.
So Cowichan rather than calling us names for raising questions for debate which is what this forum is extremely good at, please tell me given that you are far better informed than others on this board what do you say should have been the alternative to using a contractor to remove the abnormal waste?
At no time have I said that Capital know better or can manage equipment better than Centamin what I said was to achieve 30% ROI they must be very efficient and have minimal downtime over the period reported but suggest the next reporting period might not be so rosy and when the contract ends they could well take a hit to the bottom line when the demobilisation costs are accounted for.
It is simple Cowichan, it has been established that the previous management were incompetent, evil & fraudulent (despite their accomplishments) therefore the new management must be beyond reproach & unquestionable.
It is similar logic to the heavily supported orange man was bad therefore a senile puppet who is pushed to remember his own name is a good president argument.
Some people simply choose to blind themselves from common sense, the Kool Aid is just too tasty 😋
Strange if that is so.
As the Cey agreement gives an option to purchase the fleet at the end of Capitals contract. Out right.
As I understand it, if the fleet that Capital is using is leased, there is no capital outlay involved. - There will be monthly/quarterly lease payments, which will be/should be well covered by the payments they are receiving from Centamin. - Cowichan makes an important point, they could have entered into a similar arrangement and left Capital out of it altogether. - As he says, operating heavy earth-moving equipment is part of their DNA, with all of the skills and experience in doing so.
Thanks Razor.
Major stock market indexes in Europe traded higher in the premarket on Monday ahead of the newest update on the Eurozone's industrial production. The Bank of England (BoE) and the European Commission will also provide their assessment of the current economic situation.
The DAX traded 0.18% higher at 7:39 am CET. At the same time, the FTSE 100 advanced by 0.17%. The CAC 40 gained 0.10%. The Eurostoxx grew by 0.15%.
The euro rose by 0.17% against the dollar at 7:49 am CET to sell for $1.08678. A minute later, the pound sterling increased by 0.16% against the greenback to go for $$1.24683.
Baha Breaking News (BBN) / JR
Happy Monday y’al
Bend over backwards to accommodate the overspending by Mr Horgan & team
the claim being there were no cost effective alternatives to move the waste other than by contractor , becuase somehow Centamin has no experience with such procedures
you bunch of hypocrites - Centamin has a decade of experience doing the exact same waste removing procedure - but you will not acknowledge this because it would make things uncomfortable
also, you claim you know Capital can manage the equipment leases better , the costs of maintaining the fleet better and so forth - so that implies Centamin doesn't manage it's own earth moving fleet as efficiently - you bunch of hypocrites - pick one - either Mr Horgan is doing the best at managing costs or Capital is -
the excess cost to Centamin shareholders is exactly equal to the excess profit Capital has been enjoying for nearly three years now - it is in the magnitude of $100 million plus - so no, hypocrites - it was not in Centamin shareholder's best interest to gift Capital the untendered, un-PFS-ed , un-cost-efficient contract
but go ahead and continue to claim it was - your dreamland of misinformation is amusing
I am sure Capital will have done their homework on equipment life time costs because they have considerable experience running drill rigs which have very high running costs. Cowichan has jumped on early profits made by Capital which can be expected during the honeymoon warranty period.
Can this carry on for 4 years doubtful but with careful planned maintenance and service unforeseen issues can be minimised.
And of course Capitols investment in rock trucks, the vehicles depreciation ,and maintainence costs including consumables, including tyres end up as a huge cost.
Along with pages of not keeping to the contract of time ,which are clearly stated.
Not compying means huge legal problems and loss of confidence.
Not just Africa but world wide.
The original poster of this thread ,would like Pugnacious Bristow to do a T/O,.
Only because he or she percieves a profit for themselves.
An equally pugnacious person equal to Bristow.
But claims no longer invested ? Get your heads around that.
Just googled Arab Contractors and looks as though they are still going strong and particularly successful with Government(s) contracts but don't see them doing much if anything with the private sector.
Cowichan So Centamin gifted a contract to Capital who competed against several other experienced mining contractors who were more expensive.
If Capital have to date earned 30% ROI then they must be doing an extremely efficient job with minimal equipment down time so that would I hope mean Sukari are benefitting from the efficiency.
Has Capital allowed for adequate depreciation and demobilisation I have no idea? Has Capital allowed enough for component repairs/replacement over the life of the contract I have no idea?
Will the low equipment down time continue?
Will the ROI at the end of the contract be 30% who knows?
I ask what would you have suggested to be the alternative when Capital were the most competitive bid?
Gnome, Back in the day there was only one largeish indigenous contractor in Egypt known as Arab Contractors and they were a quasi government company, not sure they would have bid on this project, not sure if they are still in business.
So if the shareholders were given dividends, and there was no contractor to take on the work (Egypt is not flush with contractors...for good reasons, like having to employ 8 egyptian staff for exvery expat and so on...), what would you have Horgan do? and how would that wash out in terms of reurns to shareholders, short and long term? Just curious
regards
The Gnome
DASUT - the short answer is Mr Horgan overspent to the degree of gifting Capital Drilling a 30% ROI for the waste moving contract - money that should have been distributed to Centamin shareholders in the form of dividends
Cowichan, Barrick buying Centamin and Horgan making them more desirable. So is Horgan doing a good or bad job?
So why would Barrick want to buy Centamin or Pharoah Gold Sukari when it is 50% owned by EMRA who contribute zero funds. I think you will find Barrick has already put Pharoah Gold into the too difficult basket.
Now for Horgan destroying the share price.
So what would be your alternative to the decision made to accelerate waste removal or open up the mine to access a number of areas rather than basically nowhere to go when the planned area became unstable?
Am I happy that SP halved certainly not but I would suggest if they continued driving themselves into a cul de sac then we would have been looking at major cut backs with very little return if any from the open pit.
Horgan and his team were in an almost impossible situation damned if you do and damned if you don't. In my opinion the do was the only way to go.
If I am wrong and Barrick do have a go at Pharoah regardless of the 50% ownership then Horgan must have done an excellent job because they will be deemed as a star achiever rather than a problem child.
I live in free will world Mr T, you create your own restrictions- I work within the system that exists to make money and don't bother looking at things I'm not interested in investing in (although why you persist in gold mining is not bad for planet, I've no idea). Also, no idea why you are obsessed with crypto- it's not going away not matter how much you want it to- just chill and ignore it, or invest... the choice is free will- glad not in your world where it is banned.
AngloGold Ashanti, one of the world’s biggest goldminers, is moving its main listing from Johannesburg to New York instead of London.
The United States National Highway Traffic Safety Administration on Friday ordered the recall of 67 million airbag inflators manufactured by ARC Automotive Inc. due to a possible safety problem.
The Tennessee-based company, however, declined the US regulator's request. Given the risk of malfunctioning airbags that may burst upon deployment, General Motors has agreed to recall 994,763 of its sports utility vehicles (SUVs), Buick Enclave, Chevrolet Traverse, and GMC Acadia from the 2014 to 2017 model years.
Ford, Volkswagen, and Bayerische Motoren Werke (BMW) are among other automakers whose products are subject to the recall.
Baha Breaking News (BBN) / AB
12 May 2023
In this week’s Live from the Vault, Andrew Maguire is joined by mining stock expert and investment specialist, David Tice, to discuss the major threats facing the US power grid and the domino effect this could have on the Western economy.
Pulling back the curtain on the industry, the two precious metals experts offer up solutions and actionable insights on how investors can protect themselves in a geopolitical climate of declining US dollar hegemony.
https://www.youtube.com/watch?v=ZruN20EKEOI&t=1s
Smartphones don't offer more power at less cost, their true cost is prohibitive in so many more ways that most people are aware of!
Hi Steve ,
Unfortunately Steve you are deluding yourself if you think you live in a world of free choice.
One must of course decide if making money at any cost despite the detrimental effects on the planet and its other inhabitants is morally right, there can be no excuse for knowingly trading in such financial instruments which are directly contributing to huge energy wastage and so much unnecessary environmental damage which seems akin to the reasoning or morals of a drugs or arms dealer, "Don't blame me I'm only making a living!
I don't understand why all the Greens are not making much more of an issue of the environmental damage caused by crypto mining bearing in mind that Bitcoins have no intrinsic value to mankind, except for criminals and money launderers to cash in.
By comparison at least gold is something physical and does have intrinsic value, It cannot be replaced except for putting energy in mining and processing it and the product will never go to waste.
Being a noble metal gold has many uses, with the degree to which it is deployed held back by the cost involved, the same cannot be said about the vast majority of digital currencies.
What do you think of it so far.
Answer ?
A strong vocal rubbish.
:-)
MAY 6 2023
Barrick Gold’s Mark Bristow is on the hunt for takeovers as rival Newmont tries to push through a mega-deal, forecasting a market rally in his company’s two key commodities.
The pugnacious chief executive of the world’s second-largest gold mining group expects gold and copper prices to rise, lifting mining stocks.
His comments mark a step up in the serial dealmaker’s M&A rhetoric after playing down the need to counter the world’s largest gold company Newmont’s $19.5bn all-share non-binding bid for Australia’s Newcrest.
He added that the group had the “luxury of picking and choosing M&A opportunities” after improving operations following its takeover of Randgold five years ago and a four-year effort to build a strong exploration team.
“Because of our broad footprint of exploration across all prospective tier-one gold and copper jurisdictions, we have our geologists on the front lines. We have a much better understanding of the M&A activity than most of our peers,” he said.
https://www.ft.com/content/db1911e9-ac77-4176-8afc-3c6e266ef027
------------------------------------>>>
There are less than a handful of tier one targets of which Sukari is among.
If Barrick takes the bait, hats off to Mr Horgan for the destruction of Centamin's share price while prepaying all of Mr Bristow's stripping expenses for the next half decade...
Also, hats off to Mr Horgan for keeping Centamin shareholders acquiesced with no exploratory drill results these last 3 quarters, no Doropo PFS and no production growth while sending AISC thru the roof... it takes a special sort of somebody to pull that off
I trade CEY to make money, I trade crypto to make money, it's as simple as that for me. I have no loyalty to these things, and work with whatever system them live in- it's that simple to me. I don't take an irrational position against assets, and trade what I think can make me money.
I like to live in a world of free choice, and markets, and things should not be just "got rid of" because you disagree with it- the markets and consumers, which we are all part of, decide and this is how it should be in a democracy.