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The price of gold soared on Monday, hitting a new record high as the cooling down of inflation in the United States for the month of April, as well as the speculation surrounding potential interest rate cuts by the Federal Reserve raised the interest of investors on non-bearing assets.
At 7:40 am CET, gold was up by 1.29% and sold for $2,446.23 per ounce. Silver increased by 2.40%, going for $32.22 per ounce. Platinum improved by 0.39%, selling for $1,090.05 per ounce, and palladium gained 0.37% and went for 997.55 a minute later.
Baha Breaking News (BBN) / RR
Gold currently $2449.80
Session high $2450.06
CEY not really feeling it. Not looked at the other goldies to see how they are doing, but quite disappointing here.
hi repression,
whilst my opinon may not be palatable with some and whilst i accept that sami el raghy and his family worked hard to to establish centamin sukari operation they have also done very nicely out of it and i certainly don't feel that as an share holder i owe them anything,on the contrary without share holders investment sukari like the vast majority of other mining operations the world over wouldn't have gotten off the ground because few bod are willing to take any risk by o putting their own skin in the game and although the el raghy family have accrued a vast amount of shares these have been amassed at a miniscule personal cost and the present bod despite their claims that the shares are very cheap and that their strategy is working show no inclination to make any substantial purchases themselves?
as a holder of centamin for over a decade i have always wanted the company to succeed and understood that unforeseen difficulties in mining can arise, but that said i felt reasonably assured that any such occurrences could be dealt with in an efficient and professional manner because as the founder of centamin had often been eager to announce centamin had the "best people".
sadly though it is now evident that although sami el raghy may be an excellent geologist and josef el raghy is expert in pushing a sale it seems they were no judges of of the professional abilities of those running the centamin mining operations and they also failed to notice that the pit walls of the sukari operation were of to steep gradient that their wasn't any instigation of appropriate waste clearance resulting in the near open pit wall collapse and the subsequent bill in excess of over $400 million to make the open pit safe and workable again.
that said even though this huge expenditure has made the open pit safer and improved the access to he underground workings the inerrant and ongoing low grade problems remain and it seems martin horgan's predicted "bonanza " grades in the underground workings seem to have been just wishful thinking or possibly a "mirage".
the reality of the situation is that centamin possibly with the the complicity or acquiescence of the bod and previous management "glossed" over the low grade ore by high grading as was highlighted in the seeking alpha artices of 2016 & 2018, although denied by andrew pardey until the inevitable crack in the "gloss" forced the company to confess its bad practices!
after the years of bull****ting the shareholders and the market by the previous management and the lavatory pan projects west africa it is understandable that the market or shareholders remain suspicious now!
so the share price wont really do anything now until there is some proof and as yet all we have is slick presentations and promises, very little else!
read the crux investor article i posted "deeds not words" , crux investor are aren't popular with some but their articles are usually very good at "hitting the nails on the head
Tibbs who told you that the pit wall was too steep and that this led to a near pit wall collapse?
There was no near collapse, just a miscroscopic movement, same as messured in old buildings ,especially church vaulted roofs,these done by small plates of glass,glued in place over vintage cracks,after hundreds of years.
Come off it Mr Bond, the unital indications may have been regarded as microscopic, but never the less it necessitated the severe curtailing of normal production and had taken around $450 million and nearly four years to try and rectify the station by re sculpting the open pit walls and improving underground access and the job is ongoing as are the lower ore grades !
https://www.miningmx.com/news/gold/44561-centamin-commits-to-100m-payout-in-each-of-next-two-years-as-unveils-sukari-review/
The broker said, ‘We view this as a material negative and is the first significant operational issue faced by the new CEO.
‘While the downgrade to 2020 is significant, the bigger concern is that this raises questions about the design of the Sukari pit moving forward.
‘This could necessitate a redesign based on shallower pit angles with higher resultant strip, which would have a negative impact on costs and free cash flow generation.’
https://www.sharesmagazine.co.uk/news/shares/centamin-plunges-as-production-hit-by-mine-trouble
This is one of the reasons that is so little market confidence in Centamin!
The "waste" removal was neccesary to open the the face and hoping to access underground ,thus making open pit grades are enhanced.
Never mind your old cut and paste posts, in truth you do not understand very much at all.
Your dramatic posts benefit no one.
I understand all too well that there was no mention or implied intention by the previous management to even clear away the several years worth of waste already accrued, let alone any intention to open up the face or improve the access to the underground workings, indeed it wasn't until after the "Crack" in the gloss that the Jersey BOD claimed they were simply unaware that there was no waste clearance in the open pit!
Incidently I have the reply from the Centamin representative stating as such!
So contrary to what you imply It would have been impossible to open up or re sculpt the open pit walls ,or indeed improve access to the underground working because prior to the forced admission by the previous management of a potential wall failure the presence of several years worth of accumulated uncleared waste would have made such open improvement works impossible.
This is why $450 million has been spent on a waste removal contract with Capital.
Hi Dasut,
Open pit design regarding the wall angles inclination may have been a contributing factor to Centamin's open pit woes, this seems to be the opinion of some experienced industry professionals and analysts.
Open Pit
RAISES QUESTIONS ABOUT DESIGN’
This could necessitate a redesign based on shallower pit angles with higher resultant strip, which would have a negative impact on costs and free cash flow generation.’
https://www.sharesmagazine.co.uk/news/shares/centamin-plunges-as-production-hit-by-mine-trouble
https://kuchling.com/steeper-pit-slopes-can-save-money/
Tibbs, Yes there was an unsafe area BUT I have never seen anything reported that it was caused by steep pit walls. Also it is history and we need to look at the future which as far as I am concerned looks good and if we don't see an improvement and consistency after the waste contract brings order to the operation then like you I will be asking some t questions as to why.
Will the improvements improve the SP who knows as we have all seen improvements, good results and very good news coming out of the company but very little of the positives have improved the SP.
Wise words Dasut about needing to look at the future, but with one caveat, for me the elephant in the room is gold production.
Shareholders and management have been fortunate to have had a period of high gold price but it is now time for Horgan and crew to consistently and reliably deliver 500k+ gold ounces per year from Sukhari.
Also time to stop coming up with excuses for barely achieving targets, underperformance and to stop kicking the can down the road.
Despite the future looking bright I don't yet see evidence of Horgan and crew doing locking down gold production.
I await each quarter gold production announcement with trepidation, wondering will they comfortably hit target and what will be the excuse this time.
Hi Somnamna,
I agree with your sentiments and concerns, but especially concerning the "Brightness" of the future which at present seems to based more on hopes rather than actual delivery.
That said it is noticeable shareholders are expected to believe in the company strategy yet the BOD aren't willing to put their money whee their mouth is by making some substantial purchases!!
I'm sick of promises and can kicking down the road, as Crux investor rightly pointed out it's deeds not words that are needed now!
,
Whats needed is more production at lower costs, it seems that the the company version of good news and the company results published so far aren't enough to cut the mustard with those that matter at the moment!!
Q2 should see strong production and record revenues. Something like 120,000oz sold for $275million. Hoping that will give the SP a boost.
Gold is going to the moon and when fed pivot it's too late.
Added today....don't like the ATH on various exchanges/NASDAQ etc. Added a few of the major mining players also. Want to add some juniors though for a small part of portfolio. Any recommendations, preferably gold/ copper? That would be good to research. Any help would be good.
When is Q2 declared for hopefully the SP lift??
Lucky the price of gold is so high otherwise would be lucky to be in the 80s
hi 3bear,
having listened to the last few slick presentations by martin & ross and watched martin rattle off his well rehe****d sales talk on various youtube mining channels of really nothing more than dressed up reasons why yet again the can has been kicked down the road, i cant be bothered to watch or listen any more!
i just hope for some proof of strong production, but i'm not holding my breath unfortunately!
as mike states were it not for the pog then this sp would be in the bottom of the last chance saloon spittoon!
Hi Tibbs or anyone
When will be Q2 be announced?
And if we hit predicted targets and when is the clearance wall costs due to end. Any help appreciated needing to sell come soon.
bests to all
Tibbs, May have been a contributing factor is more like it BUT I would respectfully suggest that if it was due to a steep angle we would have seen a slip not just what actually happened and they discovered a small localised area of unstable ground which isn't uncommon.
As for the $450 million spent on removing waste OK marginally more expensive employing a contractor but it is not additional waste it is waste that is being moved later than it should have been and inherited by Horgan and his team plus some advanced waste removal to get into some areas of ore earlier than scheduled to provide the multiple faces rather than the single or at best a couple of faces.
It isn't piles of waste removed and dumped in pit only to be moved again it is the opening up of areas to expose ore on several fronts to provide flexibility.
This then provides the flexibility of utilising several smaller fleets working several areas, rather than one or two larger fleets working one or two areas.
Somnamna this is why I believe we will see improved production ounces in the open pit coupled with laying down of low grade ore onto the leach pads this will maintain lower strip ratios and therefore reduce the cost per ounce.
This said the icing on the cake is dependant on the blend of the higher grade underground ore which is crucial over the coming years.
Proof will be what is achieved by year end and Horgan needs to be at or close to the high end of the target to earn market approval.
Mikefreedom 25th July is when we are due to hear 2nd Quarter/Half year results. It isn't a wall clearance because the unstable ground was mined ages ago. The waste contract is due to complete during this second quarter but when exactly isn't known. I am sure we will hear something loud and clear when it does come to an end.
Thank you Dasut,
To be perfectly honest the waste is waste and I agree that opening up new areas will create waste , but that said at the end of the day had the waste been dealt with as a matter of course in the past as any responsible mining company should have done we would be in a much better place now.
I have encountered differing views and opinions amongst industry professional and analysts as to the gradient inclination of the open pit.
I can't disclose the name but a forum contact from the past who has recently moved to another higher paid mining related position said the Sukari job has been somewhat more involved than initially envisaged, although they seemed pretty sure that there was at least another 3 quarters work at present rate, possibly more depending on anything unforeseen on the main clean up contract and even then the work would still carry on helping to move production along for some time subject to all parties agreement.
Hi Tibbs, cans are not being kicked down the road any more. They are being picked up and dealt with. That costs money. But eventually the cans will all be gone and the AISC will reduce. Bon courage mon ami, we're almost there.
Hi 3bear,
I wish I had your enthusiasm and confidence in the company , unfortunately they faded away like a desert mirage longer ago than I care to remember!
I hope that you are right because I'm certainly looking forward to when those remaining cans are at last picked up and we feel the effect, that is the corresponding rise in share price and a restoration of a more respectable dividend!
Tibbs you always need to have the last word.
The waste is a cost that applies to doing business and regardless of when it happens it has to be paid for and yes we wouldn't have had the blip when they were limited due to safety issues in one mining area so a decision has been made by Horgan and his team that there is the need for flexibility. What I am saying is that the $450 million isn't an additional cost it is a cost less some that would have hit the bottom line at some time in the mine life.
Also it isn't uncommon for mines to develop areas one after the other rather than open up the total/majority of the resource which is what is going on at the moment. Without detailed knowledge of the evolving mine plan it is easy to to criticize.
Also I can understand the differing views of industry professionals because I have attended meetings on mine sites when there are differing views and they are on site working day to day. Differing views come with differing knowledge and how such decisions impact the bottom line or shareholder, BOD reactions. Easy for outside industry professionals to agree to disagree but they aren't making the decisions.
We can rightly comment but can't state for a fact that the cause of something like an area of unstable ground is caused by steep gradients of the pit wall just like we can't state for a fact that the SP will rise or fall.
If a mine doesn't become more complicated as it develops or encounter complications then I would be absolutely amazed as mines are complicated and this is why people study for years to become engineers.
This forum is for debate and views not for stating facts that aren't factual.