The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Major European stocks were muted during Friday's premarket session as the world marked the first anniversary of the conflict between Ukraine and Russia, with key western leaders scheduled to hold press briefings throughout the day.
On the economy front, the last trading day of the week will be marked by consumer confidence data from the United Kingdom and Germany, as well as the final data on the state of the German economy.
The DAX, the FTSE 100, the CAC 40 as well as the Euro Stoxx 50 all stood slightly in the red territory at 8:04 am CET.
Both the euro and the pound traded unchanged against the dollar at 7:45 am CET to sell for 1.06013 and 1.20203, respectively.
Baha Breaking News (BBN) / ND
Happy Friday y’al
Enjoy your weekend!
“Centamin will announce its audited financial results for the twelve months ended 31 December 2022 on Thursday, 16 March 2023.“
Whatever spare cash you have in a Bank earns no interest, that will continue .
So buy a valued commodity that for thousands of years has beaten any inflation.
Do you hold ant physical Gold currency ,of legal Tender in your country, as a safe guard against inflation. It cannot be confiscated as in the 30s , gold bars can -
Tell half fthe world it is completely useless .The East.
Most Banks even in the West ,they are buying whatever they can .
Thanks
I think the prediction interms of future value is right, the timing is wrong.
regards
the gnome
Pierre Lassonde predicts $200 oil and $2,400 gold in a month as Putin’s war drags out
Feb 28, 2022
"The longer it lasts [Putin's war] , the more profound the impact is going to be, particularly on the energy market. If this goes on for two, three weeks, a month, I think you’re looking at $200 oil, (and $2400 gold ) full video here: https://www.youtube.com/watch?v=Z7ulPlxXaDs
------------------------------------>>>>
So the question for us examining the past is why didn't Mr Lassonde's (and most every other gold bug) prediction of higher gold $ come to pass. Some possibilities:
a) there just isn't as much popular demand for physical as we imagine
b) market manipulation (certainly happens in crypto)
c) the market is always right - gold is where it should be given supply and demand
d) ??
If the answer is 'c' then perhaps undiversified mining companies (single commodity) do not have the smartest business plan at work.
I welcome other thoughts , comments and angst filled comments
This is the best summary explaining the nuances. It matters not when, if it's the latest info view, which it is.
https://edition.cnn.com/2023/02/23/economy/gdp-revision-us-economy
Those figures were from Q4 ,pre christmas.
With possible amendments to be made.
According to Kitco.
Amendments are a very useful tool for massaging the outlook .
Well I hope so Tony- some of the other figures weren't showing much slowdown. It's a tight one at the moment.
And yes, that was good.
Steve the figure that caught my eye was the drop in consumer spending. USA economy is all about the consumer and I wonder if that will keep any interest rate rise to 0.25%.
Not supportive of gold i think
Fair Comments Somnama,
Most of these mining conferences are a big "Jolly" for those that attend and an opportunity for some overpaid greedy parasitic CEO's to spout copious amounts of what they know to be unachievable promises in order to reel in gullible, and even trusting investors to raise funds for keeping no hope projects going a bit longer!!
Martin & Ross have likely realised this and are quite rightly getting on with the job of turning Centamin around into he company that has often being promised in the past, but never delivered!
Its actual, measurable and delivered results that are needed now!
Endeavour didn't take us as you put it because they were unable to execute the due diligence precess fully , ell now we know why there was the pile of crap at Sukari and the less than commercially viable West African asserts , which did make a nice little earner for he drilling companies some of which Pardey had close ties with!
Then of course is "Seb" to be trusted , Endeavour’s Centamin merger bid faces new setback as French officials launch corruption investigation into CEO
https://enterprise.press/stories/2019/12/09/endeavours-centamin-merger-bid-faces-new-setback-as-french-officials-launch-corruption-investigation-into-ceo-8004/
- The AISC cost does not cover ALL cash outlays required to keep mining. See my note. An important component is hidden by classifying these as “growth”.
Use the suggestion at the end of the note to be able to compare the relative performance of companies. Centamin stands out as one of the few companies that consistently generates positive cash flow and able to pay dividends. What has Endeavour done? Lately the company is doing very well, but the table below is for the period 1 April 2008 and 30 March 2019, which is extracted from working notes in a company valuation. Horrible history.
Endeavour Mining Corporation
Financial Performance From 1 April 2008 Until 30 March 2019
Year Ending 31 Dec 18 months 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 2019 Totals
US$'000
Ore Mined 467 2,876 3,228 4,366 6,713 6,898 7,554 11,086 9,597 1,285 54,070
Waste Mined 40,252 46,435 53,003 46,451 9,707 195,848
strip ratio 5.84 6.15 4.78 4.84 7.55
Total Milled/Stacked 467 2,496 3,307 4,211 6,304 7,171 8,383 10,791 9,948 1,815 54,893
Grade 3.09 2.23 2.26 2.62 2.48 2.40 2.25 1.90 1.59 0.98 2.10
Contained Gold 46,400 179,149 239,867 354,145 502,001 553,183 606,770 659,263 510,145 57,169 3,708,091
Gold Produced 44,407 163,769 210,209 318,143 465,770 516,646 559,190 593,815 450,140 56,648 3,378,737
Cash from Operations -11,179 -8,548 93,374 43,834 127,438 147,301 153,899 221,791 250,920 22,916 1,041,746
Investments 83,640 -145,347 -180,226 -148,556 -112,881 -7,306 -180,177 -478,728 -453,319 -109,857 -1,732,757
Financing -28,083 102,658 77,131 71,642 -27,166 -91,743 41,999 251,741 204,467 47,452 650,098
of which Equity 579 2,706 6,012 2,720 73 0 185,285 107,755 -1,356 238 305,130
Effect of X-rate 1108 -784 344 504 1,464 -912 -944 3,604 -748 -499 3,137
Change in Cash 0 45,486 -52,021 -9,377 -32,576 -11,145 47,340 14,777 -1,592 1,320 -39,988 -37,776
Cash at Year-end 167,300 115,279 105,902 73,326 62,179 109,519 124,294 122,702 124,022 84,034
Fair comments andobservations Paul!
As you imply Ocado price overblown based on analysts spin and bullsh*t, rather like the Centamin of the past built up on Pardey & Youssef's "Pie in the sky"which we were willing to believe, but then why wouldn't we, they were after all supposed to be professionally competent, posses integrity and to be acting in our best interests, they weren't , they conned us and a lot more other people besides!
What good market regulation, no use to the likes of us it's all a farce, the market is run for the benefit of the market by those in the exclusive inner clubrooms!
Kinesis & Basil 3 should and could have changed things for the better, unfortunately those of the inner club that control the markets only abide by the rules of fair play when it suits their best interests with the acquiescence of the government and the toothless regulator!
You mentioned "Boo Hoo", wouldn't touch it with a bargepole, "Sh*thouse" outfit, lousy employer, sources its clothes from sweatshops that abuse their workers and in reality is he leftover of asset stripper and king of stinkers "Sir Phillip green", what happened to him, bugger all!
https://www.standard.co.uk/insider/sir-philip-green-bhs-arcadia-marks-and-spencer-topshop-metoo-b83016.html
Kind Regards
Tibbs
Apart from Martin and Ross its a jolly.
Even then should apply the investment test on if it is worth them going.
We know that shares can go up and down. We seen the highs of £2-30 here with the prediction of shortly going over £3. Weve seen both Hoc and Ths tipped, and the rise and fall. Weve seen Ocado go near £30 (£30!!!?) and fall. Weve seen Siriaus rise and fail. I think there was someone on here about 18 months ago when we were at a similar price, going on about going into Boohoo at £1.05 and they are around the 50p mark now.
A few of you people are working or have worked in mining. You invested in and believed? in Centamin. So do you know your business or job? --------or do you think you were taken in and hoodwinked??
People have talked about kinesis and Basle 3 making a difference? Have they?
I dont know about any of that stuff.
My feeling is that if the previous management had kept things slower and steadier, over the years we would have still received the same total dividend over the period, but with a higher share price than now and more confidence in the company. Look at it like the England cricket team--------their average results over the last couple of years. They do not look brilliant on paper. But look at the results since Stokes took over!! Yet is is largely the same players. They have momentum and confidence.
A positive for me is Martin Horgan seems to want to stay in the job. If he left now, I dont think his reputation would be any worse than when he came. People in "the know" probably realise he has had to clean up after what the last lot left him with. I think he is going slow and steady and when things start to improve , it will be positive for the share price as he will have built trust by not over promising.
Having said that, I would still like to see him and other management buy shares on a regular basis.
European stock exchanges traded mostly higher before the markets opened on Thursday after Deutsche Telekom and Eni reported their respective results from the final quarter of 2022. In addition, traders will assess the final January inflation data for the Eurozone, set for release at 11 am CET.
The DAX increased by 0.07%, London's FTSE 100 declined by 0.16%, the CAC 40 rose by 0.18 and the EURO STOXX 50 advanced by 0.26%.
The euro was up 0.17% compared to the dollar at 8:07 am CET, trading at 1.06192. The British pound was 0.18% higher than the American currency, going for 1.20662 at the same time.
Baha Breaking News (BBN) / MS
Gold currently + .40% $1831.76
Tibbs Endeavour shareholders can happily take it as have done so much better than us, up one third in last three years, while Cey is down a third, so if you had moved from Endeavour to Cey 3 years ago then would have double the money compared to staying in Cey boo boo. They were lucky they failed to buy us, and of course if they had we would also have partaken in a bit of success combined with our failure so would be about 150 now I reckon
After all, Centamin is fond to boast its 'workforce' is +95% Egpytian
Regardless, why fly out so many non-essentials to a conference - are these folks so underpaid as to not afford their own warm-weather vacation?
To think I once believed this company understood its priorities. All talk.
And I'm afraid soon-to-be even less of a company in terms of return to shareholders.
--------------------------------------->>>
BMO Capital Markets will host its 32nd Global Metals, Mining & Critical Minerals Conference from February 26 to March 1, 2023 in Hollywood, Florida.
Speakers:
Martin Horgan CEO
Participants:
Alexandra Barter-C**** ; Head Corporate Communications
Sally Eyre ; Lead Independent Director
Ross Jerrard ; CFO
Jim Rutherford ; Non Executive Chairman
Michael Stoner ; Group Corporate Manager
Link: https://www.bmogmm.com/gmm/2.0/company-profile.aspx?id=14637
Alas it is one that impacts the SP though and one that the markets use.
Every time the AISC goes up in the RNS, with all else being equal, the SP goes and down and vice-versa.
AISC is a very flawed metric that can easily be manipulated and does not reflect the true cost of mining.
It is simplistic to believe that gold mines will be mothballed when they cannot produce at positive cash flow. There are a myriad of gold producers that have to go back to the market continuously for funding with gullible investors prepared to do.
- The AISC cost does not cover ALL cash outlays required to keep mining.
An important component is hidden by classifying these as “growth”.
Centamin stands out as one of the few companies that consistently generates positive cash flow and able to pay dividends.
Doubt Endeavour will ever get paid, these funds will end up in the pockets of corrupt government officials or possibly get confiscated by one of the fundamentalist groups, either way its a kick in the crotch for Endeavour share holders!
Major stock indexes in Europe traded lower in the premarket on Wednesday as investors turned their attention to economic releases from Germany. The country's CPI figure was confirmed at 8.7% in January, while the report on business climate will be revealed later in the day. On the agenda today are also earnings from Stellantis and Lloyds.
DAX fell 0.17%, while CAC 40 and FTSE 100 both declined 0.26%. The Euro Stoxx 50 decreased 0.23%.
The euro was up by 0.11% against the dollar at 7:58 am CET, selling for 1.06570. The pound stood flat against the greenback and went for 1.21083 concurrently.
Baha Breaking News (BBN) / AY
Happy hump y’al
Burkina Faso's energy and mines ministry issued a statement on Tuesday saying it had "commandeered" 200 kilograms of gold from the Mana mine for "public necessity".
The company will be compensated for its value, the statement added without providing further detail.
The government spokesman did not respond to a request for comment on Wednesday.
"Endeavour confirms that it has signed a sales contract for 200kg (approximately 7,000 ounces) of gold to the Burkina Faso government at current market prices, from its Mana mine," the company told Reuters in an emailed response on Wednesday.
"This sale is in line with the country's Mining Code which stipulates that it may acquire gold directly from mining companies, in exceptional circumstances for reasons of public necessity, subject to fair and pre-agreed terms," it added.
His government has increased the security budget, and set up a "patriotic support fund" to raise money for the mass recruitment of volunteer auxiliaries to support the army.
Endeavour acquired the Mana mine in July 2020, as part of its acquisition of Canada-based gold miner Semafo. The company owns 90% and Burkina Faso's government owns the rest
https://www.bloomberg.com/news/articles/2023-02-16/burkina-faso-regime-forcibly-purchases-gold-from-endeavour-mine
--------------------------------------------->>>>>
Perhaps it is a good thing gold has not rocketed beyond $2000 like some gold bugs desire - if it did it would certainly be harder for countries short on cash not to create matching 'Patriotic Support Funds' to protect their national interests - Egypt included
True if less high grade gold is found not if not.
AISC is deffo higher due to general inflation which will abate- and some costs will actually deflate