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companies also abuse AISC as it allows management to hide incompetence.
https://www.kitco.com/ind/fulp/2015-02-04-The-Real-Cost-of-Mining-Gold.htmled in an article in kitco.com “The Real Cost of Mining”:
You guys are unfair to Sami, he created huge wealth
I'd never heard of Quartz ridge until you pulled this up Cowichan.
It absolutely boggles the mind that in a location so close to Sukari and thus extraction costs could be mitigated in comparison to a completely new mine, that grades of 21.4g/t and 16.4g/t (the former from a relatively short drill and well on its way to 'bonanza grade') that these locations have just been put on the back burner.
I have ZERO expertise in how an underground mine's cost expenditure works in regards to extracting non profit producing material, and over what timescale it takes to move x/meters forwards, but I can't imagine with grades like the above that it would be unprofitable to extend the underground section of Sukari to this area?
Come on Miizolgit, it doesn't do any harm to remind us longer term members of the geological structure of Sukari that they may well have forgotten and it also educates some of the newer holders.
Also this may relevant considering the latests resource evaluation being carried out.
But in any case its always good to hear from you!
Energy is one of the interesting issues to keep an eye on. I think CEY is positioning itself in the right direction, so will be very keen to watch how it goes. Being in the right quadrant in ESG world maybe quiet important in the years to come.
The western governments are almost laughable at their attempts at developing a sound strategic energy policy and action lines. Nucear is the very obvious energy source they ignore, because of the bleating of the Chardonnay class and their own ignorance.
A history student would advise the ignorant governments that many, if not all, of the great empires were built on cheap forms of energy...Rome, British, USA .... Conversely, many have sunk below the waves due to lack of energy ....
Lookig forward to the 8th December revelations...
best
the gnome
Fair comments Mr Gnome!
Cowichan
I think as an investor I/you should always be an aggressive advocate of better management and a better board. Everyone is replaceable. Everyone can improve. No one is perfect. Deities are not surprisingly few. CEY Board is far from perfect, and management is on the mend.
Board and Mngt is launching from a low base, and it certainly is not hard to improve significantly, which can lead to complacency in itself. They should not pat themselves on the back, they have a job to do and are being paid very well to do the job!
Get on with it, quickly and surely and earn you $ is the message
Best
The gnome
Equities in Europe traded higher in the premarket session on Friday, as investors waited for the latest bout of economic data reports.
Meanwhile, countries are bracing themselves for the holiday season, as they try and contain the Omicron coronavirus variant from spreading further,
The DAX traded 0.64% in the green at 7:34 am CET, while the FTSE 100 increased 0.63%. At the same time, the CAC 40 gained 0.63%.
Both the euro and the pound saw losses against the dollar, dropping 0.21% and 0.08% to trade for $1.12853 and $1.32285 respectively at 7:44 am CET.
Baha Breaking the News / OL
Happy Monday y’al
Like you Mizoglit I am invested for the long term prospects and have no intention of selling early.
Only real difference between us is my propensity to advocate for better management - whether on this forum (to gain support) or through others - like regulators, social media sites, etc.
My goal in dragging up an article from ten years ago is to increase knowledge for newer investors. And if this leads to better questions being raised at the upcoming investor presentation then it is worth the effort for all - including you
Best, Don
Don it seems you think different.
Why bother posting an aticle 10 years old ?
Good night ,why not just sell?
TORONTO, ONTARIO--(Marketwire - Aug. 2, 2011)
Quartz Ridge
Drilling continued at Quartz Ridge with results confirming continuity of an east-west trending mineralised structure approximately 1.5 km east of the Sukari process plant.
Current intercepts include:
22m@1.11g/t from surface, including
5m@3.90g/t from 17m.
11m@1.08g/t from 58m
5m@2.04g/t from 31m
4m@16.4g/t from 156m
5m@7.03g/t from 42m over a 150m strike length.
A follow up 10,000m RC program to test the strike extent of this zone will commence in the 3rd quarter followed by a resource estimate which will be included in the overall resource estimate of the project later in the year.**
V- Shear
V Shear lays approximately 1km north west of Quartz Ridge and just over a kilometre from the Sukari process facility.
Following initial soil and BLEG sampling programmes 3 RC holes (600m) were drilled during the quarter with the following significant results:
7m@21.4 g/t (from 28m)
16m@3.00 g/t (from 151m)
The above intercepts as well as the relationship of V Shear to the Quartz Ridge mineralisation are potentially highly significant. As such a 20,000 m RC program is being planned for this area as well as a soil/rock chip sampling program between the two mineralised zones.
https://www.globenewswire.com/fr/news-release/2011/08/02/1376845/0/en/Centamin-Egypt-Limited-Quarterly-Report-for-the-Three-Months-Ended-30-June-2011.html
------------------------------------------>>>>>
My Thoughts:
So, for Centamin investors like me who have been waiting for signs of life beyond Sukari (whether West Africa or in Egypt) it's been a long wait. Note the above recap says a resource estimate at Quartz Ridge was originally scheduled for Q4 2011. Let that sink in...
Perhaps we'll get an investor update on something other than the Sukari open pit this Wednesday as there have apparently been some recent papers published regarding Quartz Ridge in the scholarly realm: https://www.linkedin.com/posts/jacqui-coombes-19a3204_proud-to-be-attending-mohamed-bedair-mausimms-activity-6859501947796492289-Hpaa
I point these things out because if Dec 8th only brings more of the same ( i.e. repeating what we already suspect i.e. adding some ounces to the open pit ) it will be a colossal waste of investor good faith. That good faith that keeps believing the current slate of company directors' have any clue of how to run a 500k ounce gold miner - let alone grow into something better.
Agreed Sotolo. Of course the biggest determinant of AISC is volume...AISC per ounce decreases as production increases , until full capacity is reached , so if Centamin was able to produce 500 + thousand ounces per annum , instead of 400,000 ounces, then Centamin would have a lower AISC and would be more competitive than Endeavour . It's that simple .
This is also why the life of mine update is so important .. worse case scenario being that the life of mine is going to extend from 10 years to 12 by decreasing annual production from 500,000 ounces to 400,000 ounces (but not stated as bluntly.)
Based on what the mining experts on the site are saying, this is unlikely to be the case..fingers crossed they are proved right .
yes Mr T Endeavour doesn't have a great history but is improving, share price flat on the year, Centamin has a great history fo churning out cash as you say but is getting worse hence down 25% on a year so Endeavour has well outperformed Centamin this year, lets see next. You are right that aisc is not a perfect metric and doesn't include all costs, however if a mine sells metal for less that the total cost, in the end it has to close just as Hochschild had to mothball Arcata, cash is king and sorry to go on but I think the key for Cey is to get costs back down so it starts throwing off lots of cash as it used to - though of course it used to be easier before the full 50/50 profit share kicked in.
Thanks Mr T. I am afraid I lost the trail of your huge array of different numbers .
I am well aware of the capabilities of creative accounting techniques and also at mining companies propensity to use them .
AISC isn't perfect , nothing is , even in non mining sectors , however even though AISC is a non Gaap measure , companies are urged to include it to provide a greater transparency between mining companies .
They are also obliged to include a reconciliation between AISC and IFRS profits which are regulated , so without going into endless explanation , it is possible to make due comparisons
I will stick to my views re Endeavour and Cey, and others do likewise ..please note though ..it's Cey I am invested in and not Endeavour
Regards
Steve / Beer stalker...Cey is what I call a " sods law " stock when you look at the historical price chart . It can languish at low prices for long times , but when it does move back up , it does so in rapid speed , talking weeks not months . It's just a stock that you need to buy and hold until the big moves comes...these are likely to come just after many shareholders have capitulated and sold
Steve ..Do your global equity funds include Fundsmith and Lindsell Train , SMT, EWI and Monks ?
Some interesting opinion were expressed on here recently and as I don't have sufficient understanding of the subject I sought the advice of a very experienced and well respected independent mining analyst, certainly worth bearing in mind!
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. See my note. An important component is hidden by classifying these as “growth”.
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
45,486-52,021-9,377-32,576-11,14547,34014,777-1,5921,320-39,988-37,776Cash at Year-end 167,300115,279105,90273,32662,179109,519124,294122,702124,02284,034
Hi Chique,
You have principles,your a decent person,you care, nothing wrong with that, if only some of those that hold the power to influence future events and peoples lives for the better held such values!
I have a friend who gave up a very highly paid position in charge of a precious metals trading room of a large organisation due to seeing the drunken excesses over the forthcoming bonuses at a lunch time celebration because they had smashed the silver prices, he just walked out because he could no longer accept the long term consequences on innocent people communities caused by trading paper on the Comex.
Keep well!
The talk at present is of two camps seeing inflation at either 4% or 2% in the second half of 2022. The difference is mainly wage embedded inflation and supply shocks ending. However, the elephant in the room is being ignored completely imop. The fact is either doing nothing about climate change has a huge random environmental and economic cost or the cost of implementing adaptive changes has a significant cost impact. There is no escape either way. USA has a past habit of including hurricane repair and events like it delivering recovery costs as a growth of GDP as citizens struggle to get back to where they were before with interruptions in their work, the added future insurance costs and the costs of items not insured. In essence the GDP has given no productivity gains at all and is a false measure of improved wealth in most circumstances. The only one's to gain are those employed doing all the repair work and the workforce available to do those tasks has reduced. The same applies to the true cost of carbon intensive industry delivering waste plastic bottles dumped all over the planet and not factoring in the negative GDP to clear up the mess.
Energy costs are likely to rise significantly in the UK which needs more power stations to be constructed on the National Grid. Many other countries are in the same position. Building more wind farms works well when its windy, but the demand for energy with carbon reduction is not going to be cheap as it has to be reliably sourced. This in turn will hit manufacturers and gradually, as funding for the oil energy sector reduces, a desire to use long lasting products then cheap throwaways may need to happen. This again is front loaded with heavy inflation although it declines sharply in future years as real productivity, environmental improvement and climate security if possible gets delivered.
I therefore conclude that inflation in reality is around for longer than expected, not just for the reasons of certain countries inflating away some of their debt, but also to deliver other changes the world will need or will face if not meeting those needs at all. I therefore believe 3-4% inflation is going to be around for a lot longer than people will expect and that gradually like in 2025 interest rates finally get normalised again to 3-4%. In relation to CEY and gold, I therefore see things as likely to be stable for the next two years or so. In 7 months we shall find out if my opinion is broadly in line with events.
TheBeerStalker- I agree with much of what you say. Gold bombed along with all stocks at the start of COVID and only got a bid, like all stocks on recovery (broadly). What did I do in March202, like most I dumped my stocks out of fear and liquidated to cash, I certainly did not buy gold- nor did anyone else hence the drop. CEY is a fab trading stock, like all PMs. I had expected with inflation that gold would have had much more of a bid, along with many and am surprised that this was not the case- but like many things, the drivers are becoming exponentially more complex and will continue to exponentially rise- the reason I don't follow historical charts...
With my main pension, which I don't manage myself, but is global equity based, it has risen greatly, due, in my view, to the "K" shaped recovery. Interest rates are so low- so people and fund managers need to put their money to work somewhere. Should another COVID like event occur again like in ~March2020, people will again go cash, being ready to pile back into to equities at what they see as bargain basement prices.
I agree travel sector are a bargain buy for the long term- it's a question of when to pile in.
Good luck.
Nature of the beast lol. It's not like people don't know it's volatility.
As always, the highest % gains come in with investments with the highest % risk...
Next highest risk are companies like CEY, when politics and mining problems can cause big swings.
Will be dialling in the 8th for sure- the markets normally respond to just RNS data (along with economic data), but will be interesting to see if the presentation is super positive, will the price jump on words in a presentation and not in a published RNS? I am hopeful as this stock still hasn't added back it's Oct2020 drop...
Reuters need to get their act together and report the facts.
Saturday 4th December 2021- Bitcoin dropped to ~USD45,934 at ~05:29GMT, and ROSE ~8% to ~USD49228.82 @~20:01GMT.
Correct in that it is down ~28.7% from recent highest ever, but up ~65% YTD.
These are the correct facts.
(Reuters) - Bitcoin dropped 8.4% to $49,228.82 at 20:01 GMT on Saturday, losing $4,514.87 from its previous close.
Bitcoin, the world's biggest and best-known cryptocurrency, is down 28.7% from the year's high of $69,000 on Nov. 10.
Ether, the coin linked to the ethereum blockchain network, dipped 2.69 % to $4,109.14 on Saturday, losing $113.66 from its previous close
Inflation is already here ..
CEY will suffer on poor COVID news as it's stock- it did last time and only gain traction when the markets started to rise again.