Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Centamin published a life of mine report. Plus they informed the market that production will ramp up to 500oz plus, in two years time.
The only down side to their market release was that the AISCs will rise, and the market reaction is qualifying by the rise in costs. Of course the market being a market fines the stock for the higher costs but didn’t reward for rise in production.
The current price of Centamin is unnecessarily low.
It’s unjustified.
Quit so Razor's!
This is the same market that puts huge values some mining companies who lie about the AISC quality and the potential life span of their existing and new finds to con investors and then there are the type of companies in other sectors which have huge debts but skyrocket in values to ridiculously high values is based on nothing more than the latest in crowds social media hype and what might be delivered in the future.
Yet by comparison Centamin is a company which has no debt, quite the contrary, money in reserve and pays a divi, has huge untapped soon to be accessible and other exploitable resources and a CEO with integrity and a credible plan to deliver on and indeed exceed on on expectations!
That said I agree,why so much surprise about the rise in AISC, it was to be expected from the site clearance costs and is anyway only temporary and will be reducing through next year!
Unfortunately nowadays the market and many brokers and traders have no patience and regard 24hrs as long term
Look after the dog that's the important thing!
No detailed progress update on the west wall at Sukuri and increased ASIC..
Smart companies understand the markets, and communicate effectively. Non smart companies do the opposite and their shareholders foot the bill.
However, it’s not just the comms is also what the situation is that’s the issue
Centamin are not flawless and for that reason I indorse Cowichan’s use of twitter to help keep Cey awake.
From Capital Ltd it is known that they’re ahead of schedule with the waste removal.
Does that mean that Centamin are ahead on the mine repair work, I don’t know.
They also didn’t mention that they have had a new crusher installed, yet here is a great report from the company that supplied it.
https://im-mining.com/2021/12/01/centamins-sukari-gold-mine-improves-efficiency-quick-flsmidth-gyratory-crusher-upgrade/
This too shall pass, I just hope we end this coming week at no less than at least the current share price.
Obviously if that were the case it should have been highlighted in the 8th? After all the west wall is an integral part of the Sukuri mine is it not?
The comms were poor.
The comms were poor.
The west wall is what crashed the sp.
Hence the importance of a progress report..
The best way to show displeasure, is simply to band together and vote out the directors who are sitting on their hands, as has been done recently by a very minority group of investors at Exxon
"May 26 (Reuters) - A tiny hedge fund dealt a major blow to Exxon Mobil Corp on Wednesday, unseating at least two board members in a bid to force the company’s leadership to reckon with the risk of failing to adjust its business strategy to match global efforts to combat climate change.
The success by hedge fund Engine No. 1 in its showdown with Exxon shocked an energy industry struggling to address growing investor concerns about global warming. It happened on the same day activists scored a big win against another oil major, Royal Dutch Shell - a Dutch court ordered the company to drastically deepen pledged cuts to greenhouse gas emissions"
Even the dinosaurs did not see their demise coming, until it was too late
This week’s main event is the final Federal Open Market Committee meeting of the year on Dec 14-15. Some market participants expect the rate of asset purchase tapering to double; others think it will stand pat with the current pace. The arguments on either side are balanced. Persistently high inflation and improved recent labor market data favor a faster tightening. Lack of clarity about the impact of the omicron variant of the coronavirus is a reason for caution. Whatever the pace, though, the Federal Reserve is now set on a tightening course, and economic fundamentals will keep it there. As the labor market tightens, demand pull will keep pushing up inflation until the middle of 2022. At that point, the productivity boost from the capital spending boom of the past two years could become a moderating force. But US inflation will likely hover above the Fed’s 2% inflation target for most of next year.
best
the gnome.
Hi Mr Gnome,
I wonder if there be bonus share awards to the directors this year?
There is supposed to be a certain criteria that has to be complied with to justify such rewards?
Wonder what Marmots view is on things after 08th Dec update?
A good way to gauge shareholders disapproval of directors performance is to look at the level of votes cast against the directors remuneration report and the re-election of directors. These can be found in the results of the AGM Rns
The votes registered against the Directors remuneration package was less than 0.1%. Similarly the reappointment of each of the directors went through on the nod The only director to attract an over 1 % opposition to his reappointment was James Rutherford I think, who had 1.6 % votes registered against him . It will be interesting to see how these votes change at the next annual report , until then, expect no change in direction .
Candidness of shareholders is required here , rather than blind faith , shareholder wealth is being destroyed and at a rapid rate ..markets were swift to react to the nothingness of the 8th December update of life of mine report , and momentum is only growing .
What we could do with is an activist investor , holding more than 5 % of shares , who can force his or her way onto the board, perhaps as a non exec director to shake things up . What we have is passive institutional funds probably managed by wet behind the ears ex public schoolboys, eager to be taken on a directors organised tour around the pyramids and the valley of the Kings and Queens or is that being unfair?
Hi Candid,
Good idea, any idea on which institution or fund to approach?
Also think it was at the 2018 AGM there was a vote against the directors proposed remuneration?
I was made aware a couple of years or so back when Centamin seemed not be acknowledging or answering questions that out of frustration a group of retail investors took to contacting the analysts (RBC Capital etc ) and some of the media market analysts via email highlighting their concerns,, this certainly seemed to have stirred up some discomfort with Centamins official PR of firm of representatives who then contacted some of those share holders concerned and asked them to refrain as the analysts were complaining to them about retail investors not following the correct contact protocols and procedures and that all enquiries should be put through the Centamin appointed PR firm.
I am sure Cowichan and some others will remember?
I have spoken previously about what I consider to be a sensible strategy to turn the situation around for shareholders
Create a devolved body to run the West African assets ..given free and autonomous power to operate, unencumbered by day to day interference from head office . They will be given adequate funding (possibly financed by debt ) but with progressive targets designed to create value from the asset.
In the mean time , dividends should be reduced to prevailing US interest rates plus 1 or 2 % equity premium . No room for debt AND excessive dividends given the current circumstances
Mr T...it is often predator private equity firms who take up positions on the cheap , looking to benefit from quick turnarounds that they think are achievable in the short term ...there only has to be the ' perception of changes in a company's fortune ' rather than the subsequent realisation of it, to bring about a rapid turnaround of share price . Of course , once they get ' inside the organisation ' and uncover what is really going on , they may conceivably increase their holding and become even more demanding in the process .
Not quite sure what we're all so disgruntled about. The share price will recover. The update was a positive one. CEY has been dragged down with metals and other miners on the strengthening dollar and the piling back into certain riskier assets, but this will be temporary. Sure, the fair market value for CEY is closer to 105 than 85, but that's not entirely relevant. It's down on sector weakness. There's plenty to be encouraged by in the form of improving yields, maintained dividends and the prospect of multiple Gold tailwinds. This is still hovering around its support levels. It has spiked down to as low as 80 before, but everytime it has tested the 80p range in the last 5 years, it's soared back up by 40 to 100% within 100 days.
Retail shareholders , such as ourselves registering our disapproval , as you and gnome suggest is another angle to adopt, to strengthen investor revolt .. the third angle of attack would come from the trustees of the individual company pension funds who are investing their beneficiaries monies with those passive institutional investors ...there is always a way to succeed .
The problem here of course , is that none of these actions are in play.
Yes Kando. I pretty much concur with your observations
Volatility everywhere atm.
I like that word ' disgruntled ' Don't get too complacent though .
The last time it was 80p was nearly 3 years ago , when AISC was half of what it will be in 2022, and when gold prices were on the rise. Also there was more positive sentiment towards a more productive pipeline of future developments.
Since then Sukari has now had 3 years worth of depletion and by their estimation only 10-12 years remain ..news regarding West African assets look less promising than they were , and the mountain of cash is now being likewise depleted to fund capex
Not quite the same circumstances ..of course you could still be right ..let's hope you are
Hi Kando,
Interesting post with some pertinent points, like your optimism! , we certainly need plenty of that at the present and confidence in the new management strategy!