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But to be honest, nobody knows what Egypt will do when they are faced with insolvency. Some articles from the past:
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https://egyptindependent.com/egypt-govt-bill-prepares-companies-for-re-nationalization/
Egypt Govt Bill Prepares Companies For Re-Nationalization
October 30, 2018
Companies that have handed down judicial rulings on their de-privatization include: Nile Cotton Ginning, Tanta Flax, Omar Effendi, Steam Boilers, Shebin El Koum Spinning and Weaving, Arab Foreign Trade, and Simo Paper.
Egypt’s Ministry of the Public Business Sector has prepared a draft law to eliminate the entanglements of companies returning to state ownership.
The law, consisting of only two articles, stipulates that re-nationalized companies should be referred to the Investment and Dispute Resolution Committee, to consider how to compensate investors who bought them in good faith.
story continues on link
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How Cairo Cracked Down On One Of Egypt’s Leading Businessmen -Inside the government and military’s squeeze on Safwan Thabet and his dairy company
Weeks before Thabet’s arrest, one of the senior officials tasked with overseeing new state-led milk production projects conducted several visits to one of Juhayna’s factories. During these visits, this official was allowed in on the how-to of managing the factory and the modernization of its equipment and operation systems, a second political source tells Mada Masr.
According to this source, Thabet appears to have been approached with a proposal to think about merging some of Juhayna’s factories with the new state-led initiative as a gesture of real support to food industries. Thabet treated this talk as mere chat rather than a request, the source says.
These visits coincided with Sisi’s repeated directives from last May and until early September to the prime minister, the agriculture minister and a number of other officials including Major General Mostafa Amin, the director of the Armed Forces National Service Products Organization, to establish a comprehensive integrated production and collection system all over the country. The plan included 200 milk collection centers.
Sisi drove these points home once again in remarks made just hours before Thabet’s arrest,
https://www.madamasr.com/en/2021/05/05/feature/politics/milking-juhayna-for-all-its-worth/
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these are not the actions of a free market supporting democratic regime, to say otherwise is only to falsely reassure Centamin investors all is well
and the granddaddy of all Egyptian nationalizations
On July 26, 1956, Egyptian President Gamal Abdel Nasser announced the nationalization of the Suez Canal Company, the joint British-French enterprise which had owned and operated the Suez Canal since its construction in 1869
https://history.state.gov/milestones/1953-1960/suez#:~:text=On%20July%2026%2C%2019
Loads of waffle ,history and your suppositions .
Everyone is getting used to it.
Take up politics in your country ,it will give you something to occupy your time. :-)
Cowichan,
My point is that nationalization does not even get mentioned in Egypt now, despite all the financial troubles.. let me know if you find any recent article taking about it..
Those companies mentioned in the report, this was a tricky issue followed 2011 revolution, it was not initiated by the government.. just like Centamin court case..
As to the Suez Canal... Let's not even go there because I don't want to talk politics, history and occupation..
As a matter of interest I asked the company these questions on Tue, 31 Jul 2012 ,hope this helps!
As an investor in Centamin I wonder if you could explain the following questions if you are allowed or able and if not then let me know why?
1. There are rumours that gold mining may be nationalised in Egypt by the new government and I wonder if there is any truth in these rumours?
2. Is the recent strike at an end?
Answers-
Gold mining in Egypt is currently being carried out only by Centamin, though there is some exploration work being done by other companies. There have not been any announcements by EMRA, or indeed the Oil Ministry (under which the contract which Centamin has with the government sits under) and indeed the government is highly supportive of Centamin and plans to expand its production to in excess of 500,000 oz per annum. In view that Centamin is protected under the Oil Ministry, the same rules of tenure would apply to the oil companies (and there are a number of oil majors in Egypt), so any nationalisation would set a precedent that could significantly impact Egypt should it choose to go this route.
In terms of the strike, progress is being made but we will only announce when we are confident that all of the issues have been cleared up.
This is still work in progress.
Siko, Good to hear from you and like you I feel Egyptian politicians and their advisors see nationalisation as political/financial suicide. Egypt rely so much on the World Bank and International country finance and goodwill would go through the floor if they even hinted at the word.
They definitely need to do the opposite and encourage international investment especially if they are to develop their mineral resources.
Tell to the best of your knowledge do you feel the 5/6 influential Egyptian families still have advisory influence?
I remember in the early noughties senior family members of large Egyptian organisations were co-opted into the ministries to organise, restructure, streamline, manage and introduce efficiencies.
That seems very naive! You have a country in economic turmoil, terrible human rights that has seen the US pull funding an investment. A military run government oppressing the population and the war in Ukraine tipping swathes of folk into deep poverty. You think this is a stable country????!!!!! Glad you think so. You're invested in a old mine that is getting more and more expensive to operationally maintain, likely yielding less and less, in a country that is heading into an election next year with civil unrest. Um. good luck with that one.
Hi Farnky,
You raise some very valid points about the political and economic situation in Egypt, although I don't see much changing with next years election, I doubt the ordinary people have the stomach to go trough another revolution and will likely take the view of better the devil they know!
That said the situation is far worse and unstable in West African states which most likely is why Centamin pulled the plug after spendings hundred of millions on hole drilling!
In the past the Centamin management were less than truthful about the the potential future annual guidance and most importantly the inappropriate mining methods and corner cutting at Sukari to achieve short term gain and we share holders have been "Carpetbagged" and deceived by the senior management on so many occasions that trust has evaporated in the main.
The new CEO Martin Horgan can certainly talk the talk , but will he be able to deliver and that is the big question which is outstanding, until the AISC are reduced significantly and the underground is delivering on the alleged "Bonanza" grades the share price will remain at the bottom of the bargain bucket!
So why stay invested in Centamin, well the BOD and management are likely no worse , [possibly better than the management of the other miners who really care not a jot about anything else other than stuffing their pockets and boots with as much swag as possible !
In my experience the vast majority of listed companies are less than honest with shareholders and use corporate speak and slick PR agencies and corporate analysts to bullsh*t and baffle share holders to keep them dangling on he hook, but then that's life in general the ordinary decent people get shafted by the top table every time , you only have the look at the situation in the UK at present!
I remember when I asked a DBA, if could guarantee the database change would work he said he couldn’t guarantee it - I then said would he be alive tomorrow ? (He was 35 years old and in good health)- he said he couldn’t guarantee it! So I asked him for probability on both and he replied 95% and 99.99999%- this then got me my decision making criteria clarification! The likelihood of these catastrophic events occurring and is predicting which ones, which order, when and impact etc is virtually nil- so why bother. Just detracts for sane trading…