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Currently at $1988, high of the day +.94%
SP should be higher than this
POG just covered $2,000
Such banking "developments" mean that "wholesale funding costs have risen in the United Kingdom and other advanced economies," noted the Bank of England this morning, raising UK interest rates to 4.25% in the face of consumer-price inflation rising to 10.4% on last month's data.
https://www.bullionvault.co.uk/gold-news/gold-silver-032320233
To those with the *** packets and the maths skills, how much difference to our profits (Dividends!) would it make between gold being , say 1950 and 2100?
Hi Paul,
*** packet maths and with numbers from memory/ guessing:
Current estimates based on $1850 golds (guess). So $1950 is plus $100 and $2100 is plus $250.
Guidance for 2023 is, from memory 440-480k oz so I will take mid point at 460koz.
Ignoring that we are part way through the year (i.e. I am annualising the number) then we get:
- at $1950 an increase of $46M of which half goes to EMRA (this is approx as I think they now get a bit more) therefore $23M to shareholders which, with 1.156Bn share equates to about 2c per share therefore about 1.6p
-at $2100 the numbers are $115M therefore $57.5M to shareholders therefore about 10c per share or about 8.3p
As I say numbers done from memory and pretty quick so could be wrong. Would appreciate others checking my facts/ logic / calculations.
Best wishes,
Prof
For each extra $100 on gold prive per oz and on 460k oz as Prof says then that is extra $46m of which I believe we get approx $22m (less 52.5%) so in answer to you question the difference for us between 1950 and 2100 is an extra approx £26m so broadly as Prof says
Thank you Prof & Sotolo!
Fingers crossed for gold staying around this price or going up----------and for being at the higher end of the guidance for Oz's mined.
We might actually get a decent divi then.
On a different note, how many good updates or results do you think it will take for the market to start liking Centamin again?
Paul, one decent result including return to ounces profits and dividends of yore would shoot us up but I can’t see that happening soon, ie till we get on top of costs plus we now have a management that has said it will pay lower dividends even with higher profits so they can sink more in new self agrandising holes in the ground in W Afica etc. So yes one great results would do it, but not coming soon. Have to rely on the gold price
Personally feel strong rise to SP isn't going to happen until Sukari get the waste contract done and dusted and back to a realistic 6:1 or below strip ratio. Coupled with a positive we are going mining at Doropo and the Court Case finds itself in file 13 known as the waste paper bin.
We aren't going to see anything coming out of the other Egyptian zones for a good few years, imo ABC will come or go long before any impact from the new Egyptian zones.
All of this will still need a strong GP as this will always be the major influence on profit.
I think you are 100% right there.
Hi Dasut and Mr Gnome
Thank you again for offering us all the benefit of your personal professionally based experience and insight in the mining industry which also corresponds and confirms many the already expressed thoughts of Kees Dekker, certainly on the issues of turning Sukari around.
Martin Horgan has always been of the opinion from the start of his tenure that creating increased "working flexibility" was a key factor in achieving ongoing deliverable guidance at Sukari!
Fair comments Sotolo!
Just to say Warren Buffet has never paid a cent dividend on Berkshire Hathaway stock as he always felt he could create more value for the shareholder by investing it.
As long as shareholder value is created at CEY then I don't mind if the dividend is zero. Sotolo I don't see Doropo as self-aggrandising but a serious project that I hope is going to create the kind of SP growth we're all after?