Firering Strategic Minerals: From explorer to producer. Watch the video here.
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What a pity we have to just listen and cant ask telephone questions!
Tibbs I think you can email questions during the presentation?
Annoying to hear Horgan obfuscate on the rhetorical question of why share price is low. The answer is blindingly obvious that profits are so reduced. But he tries to blame poor UK mid cap market (which hasn’t fallen anything like Centamin) or the Israel Gaza situation caring and informed as a. ‘Significant shareholder myself’. I had a bit of time for him but not when he doesn’t just come straight, second rate I would say
Hi Sotolo et al here. Bit of fun so dont take it too seriously and send hate messages .
What was drummed in to me at business school was not diversity ,not carbon emmissionss , climate change , the teachings of Marx or Engels nor the dangers associated with excessive drinking . smoking, or fatty foods. physocological inference and misguidance and propoganda . NO It was "nothing happens until somebody sells something" Hogan may be an excellent mining engineer , he may be an excellent financial businessman . but selling Sukari to retail or wholesale investors just aint in him . no matter whether he thinks it is or not.
Oh well .back in the dole queue.
Regards and good health and best wishes to all
Bob
What did we learn from this chat.
1. Nugrus drilling results should come in either late this quarter or during quarter 1 2024.
2. Additional wWastre stripping is 80% done. It will finish probably Q2 in 2024 as the work tails off.
3.The CFO is for share buy backs at the current price providing it does not impact on development and maintenance and so forth.
4. The diesel cost is now priced at 75 cents a litre instead of 50 cents. $18M is saved per annum having the solar plant which provided 40% of energy needs for 8 hours a day.
5. The underground mining rates reach 1.4M tonnes 3 years from now. I would therefore expect the rate of increase is 10% in 2024. No mention of what may happen to feed grade but clearly a higher tonnage rate does help if declined a little.
6. AISC was projected to fall nearer to $1100 as depicted by graphs. $1250 AISC or near to it could be thetarget this year.
7. Doropo is in an under developed are of the country. (It will mean more investment in staff training if they are to avoid what has happened to Hummingbird as reported last week) Next Doropo study needs to go into human resources thoroughly.
8. Strip ratios after 2024 go up and stockpiles go down hmmm.
9. Moved Capex from 2024 to 2023 is around $20M for fleet expansion and power line deposit. (Sets up a better 2024 and probably aids lower AISC forecast.)
10. Not impressed with the lower share price comments. He could have pointed out the trend since July on equities is bad in most sectors and stocks. (The liquidation comment on equity portfolios arose because of high USA Tresuary issuance. Yellen sets Q4 issuance details this wednesday and as reported in zero hedge tonight it could decide the direction of markets for the rest of the year.
All the best Tony
Bob. Lovely and pertinent post, correct as ever, best regards
And of course 1st January 2024 Egypt becomes full mamber of BRICS ,with probably lower fuel prices paid in local currency.
So not paying in foreign reserves, and possibly connected to Turkstream Pipeline.
Food neccesary from other Brics nations.
PS my non financial and non share buying (sensible) partner over heard some of it and exclaimed “ I wouldn’t invest in them they sound so boring, how can they make a business grow when t✝️are so dull and unexcited” more or less what you were saying Boblitz.
Hi Sotolo,
Have to agree with your partner, in fact they are so bored they can't be asked to buy any shares out of their own pocket, although the CFO is now in favour of buying back shares with the company's / shareholders cash, although with his caveat!
Have to agree Bobliz35, the best way to convince people and give them confidence in whatever you are trying to sell them is is to buy in yourself!
See my communication below-
Questions for Investor Meet Presentation -Why aren’t the BOD buying shares?
Dear CEO Martin Horgan,
There seems to be some reason why with the POG at around $2000 the free cash flow seems to remain poor and despite polished company presentations the market remains to value the company as though all isn’t as well as being claimed!
So It seems very clear now that however polished and in many respects stage managed the company presentation’s, it’s not enough because the market, existing shareholders and potential new investors seem to retain serious reservations about the true state of the company, it is regraded by many now as a short term trading stock, not an investment!
I appreciate that that a directors bonus scheme is in operation, but in reality the hurdles are pretty low and rewards aren’t linked to the share price, so basically its directors being awarded shares for doing their job, not really that convincing to those who have bought shares that are now at 35% of what they once were!
The measure of a director’s effeteness and worth is directly related to the company share price, so what better way for you and your fellow BOD to demonstrate your confidence and belief in your forward strategy for company to the market and other existing and potential shareholders than to step up to the plate by making some substantial share purchases, say at least 30% of a year’s salary, because if is all as well as your company presentations would like everyone else to believe then you and your fellow BOD members would be able to benefit just like other ordinary shareholders from the rise in share price, an additional but justifiable directors bonus it might be said!
However if none of the Centamin BOD are willing to put some of their own “Skin”, that is money out their own pocket, rather than just hanging onto free bonus shares until they are allowed to sell them, then it’s time to be honest and seriously consider resigning and let the company be taken over by others!
Yours Sincerely
Contact details supplied
UK Shareholder
Excellent post Tibbs, I think that sums it up perfectly, perhaps it was the wrong move being against the takeover, I cannot see how it could have been worse for us!
I don't mind "boring" if the results start to pick up along with the dividends and the share price. I'd much rather that that what the last lot did. Wasn't there a special dividend one year which took the dividend up to around 12p? While it was a nice dividend to have, the money could have been put towards keeping on top of the waste. I'm guessing the reason it wasn't, was because the high dividend suckered people in, the share price climbed and the last lot did one with lots of quids in their pockets.
As I've previously mentioned, Martin Horgan is going to a lot of trouble, with opening up the mine, new trucks and solar.
Maybe it is a cunning plan to switch from mining to producing electricity from solar? ;-)
I listen last night and all looked good apart from the rationale for the dire SP.
It's "jam in the future" but the future is getting ever closer and is consistent with what has reported thus far, so good.
My first question 1) was confirmed as "will meet" but detail as to how which was disappointing
My second question was also partially met, eg 80% through, although I can estimate at the rest of the questions based on the project AISC drop
I gave feedback at the end of the webcast as they requested, this was my feedback "The reason the SP is so low is because the costs have risen faster than the gold price has due to inflation pressures, and production is yet to get back to the 500k. Futures look good and in control though- just would have liked these reasons and not geo political and mid cap stuff which doesn't seem correct to me."