Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Investors have been fleeing the banking sector. Year-to-date the SPDR S&P Bank ETF is down 22%.
Gold has benefited, trading above $2,000 an ounce for much of 2023. The fear trade has also benefited the gold miners, which are up 10% year to date.
https://www.kitco.com/news/2023-05-17/Want-to-know-the-price-of-gold-Pay-attention-to-currencies.html
Thanks Razors Edge for your posts, very supportive in the present pessamistic climate.
Well I dont think ,if AU drops to 1900 , it will go less ,but at 1900 it is perfect opportununity for myself to but physical, again ,more sovereigns
The last batch I bought were a random year including Victorean , a very good inflation proof investment.
Another chance would be a gift ,I do not expect but would love.
3. Centamin (LON: CEY)
Centamin stands out for its solid fundamentals amid the favourable gold price environment.
The company's flagship Sukari gold mine in Egypt, where it has recently commissioned a new plant and a 36MW hybrid solar farm, positions Centamin well for efficient and sustainable operations. This solar farm is the largest of its kind in the world used to power a gold mine. Additionally, Centamin is exploring the Doropo project in the Ivory Coast, which could serve as a catalyst for future share price growth.
In recent full-year results, Centamin reported impressive revenues of $788 million, selling 436,638 ounces of gold at an average price of $1,794 per ounce. Gold is now trading far higher, and there is potential for further increases if the Federal Reserve chooses to pause its monetary tightening. Centamin's gold production reached 440,974 ounces in 2022, a 6% increase compared to the previous year.
The company achieved an adjusted EBITDA of $319 million with a robust operating margin of 40%, resulting in pre-tax profits of $171 million. Importantly, Centamin maintains a liquidity position of $157 million, providing ample capital for future operations.
For 2023, Centamin has provided production guidance of 450,000 to 480,000 ounces. With the current elevated gold price, June could present an attractive entry point, especially considering that CEY shares are currently down 6.7% year-to-date.
However, it's important to monitor potential risks as more significant tightening than expected could lead to a decline in the gold price and subsequently impact CEY shares in the second half of the year.
https://www.ig.com/ae/news-and-trade-ideas/best-ftse-250-shares-to-buy-in-june-2023-230517.amp
Https://www.investing.com/news/economy/ny-fed-report-finds-decline-in-downside-economic-risks-3084844
Talking about buls#'it talks...
So these overpaid luminaires of the financial world, when they make an economic assessment, they come up with phrases like "even as it eased a bit".
Https://www.investing.com/analysis/gold-cools-off-after-the-rally-and-chooses-a-path-forward-200638183
https://www.investing.com/analysis/gold-after-minicrash-to-below-2000-whats-the-chance-for-upside-200638171
..As from above many theories of many support lines some been stronger than other.
I personally would disregard completely the prediction on....
Next support line is at 1968 followed by 1946, 1926 ,1902, 1873 and finally 1824.
With Fed rhetoric threatening of further rate rise if bla bla bla.....the direction of the U$D is piloted wherever they like it to go. Hence POG is just a passenger with no relevant fundamentals to show for..
Sometime I wonder what is the need for all these post rate decision statements from Fed members clown.....I know stupid question.
Kind of like they are getting the best of both worlds right now, no more rate rise, no danger of further bank failures, but still managing to portrait an image of relative strong U$D to the world . Is a balancing act that they have been doing for decades.
POG was at this levels in mid 2020 and again in 2022, if we are to price in 2.5 years of inflation one would be excused to think that there is more upside to come from gold, especially if this inflation is "sticky" as some says.
The Fed is at a cross road with rates, would be interesting their actions more that they talks going forward, especially if inflation don't subside..
More further rate rise could have the opposite effect on the U$D, increasing the chance of a recession and bank failure.
With all these variables and politics in play, imo is very difficult to be specific on POG support, I see it more as a long term game.
First support line on futures hit at 1980. Next support line is at 1968 followed by 1946, 1926 ,1902, 1873 and finally 1824.
Kitco analyst suggesting a hold around 1926-1930 area and Gold eagle article expecting 1960's to hold short term and then breakdown lower. Centamin first support at 103p area.
Miner ETFs and gold now facing selling pressure.
Joseph Borrel told fiancil times importing indian fuel into EU was contravening EU sanctions.
But he dosnt mention France collaboroating with Russia on Nuclear power plants.
He is EU foriegn policy chief, god help us from idiot politicians.
When you dont know what to do do who do you turn to for guidance
The latest Bank of America global fund manager survey might help explain why equities are struggling for direction. It suggests investors are still mainly bearish, but in a bullish kind of way.
The headline picture says overall sentiment has fallen to its lowest point since the start of the year, and remains at similar levels to that during the GFC. A net 65 per cent of respondents expects the global economy to weaken, while hopes about Chinese growth are fading rapidly (quite reasonably, given the tepid economic data released in the past week) and cash levels ticked up again this month to 5.6 per cent.
Historically, Bank of America says anything above 5 per cent has been a signal to buy stocks, making this an unequivocally grim picture.
Or maybe not. The clear majority of investors remain in the camp that the global economy is heading for a soft landing (63 per cent of investors). Most believe the worst of inflation and interest rates are behind us, as 61 per cent of fund managers say the US Federal Reserve has raised for the last time and rate cuts are most likely at the Fed’s meeting in January next year.
Although the percentage of investors expecting a resolution in the debt ceiling crisis before the X-date did fall 9 percentage points during the month, it still remains at 71 per cent.
It’s also notable that although fund managers remain underweight on stocks, they have nudged their allocation to equities to a five-month high. So, what are they buying?
Tech stocks are the big one, as allocation to such shares has surged 22 per cent since March. That’s the biggest two-month jump since March 2009 and is described by Bank of America strategist Michael Harnett as a flight to safety.
Allocations to global consumer staples and industrials have also lifted slightly. Investors have also stayed overweight on healthcare stocks since January 2018.
Banks are on the nose. Equity allocations are down markedly and fund managers are nominating being short on the banks as the second most crowded trade in global markets, behind being long on big tech.
Fund managers want nothing to do with real estate (a blow-up in commercial real estate is seen as the biggest tail risk in markets). They are also shifting away from commodities, which have been seen by many investors (including the Future Fund) as a hedge against inflation.
Again, this commodity shift speaks to the bullishly bearish sentiment.
Investors’ cash holdings say they are positioned for a range of potential macro problems, including recession, slowing global growth, a spluttering China and even a debt ceiling disaster. But what they actually expect is a Goldilocks soft landing outcome, where inflation comes down, central banks cut rates and corporate earnings remain relatively stable.
I am still sitting on a more than healthy amount of cash, with a healthy touch of gold aand one other energy m
Mr Bond
Indeed, Real Balanced Science and Engineering is sadly missing from the "debate"/ discussions on climate change. Its all a bit too hard for the politicians to understand (remarkably few politicians are scinece and engineers?), and the economists have little to do with the real world etc etc ... BIt like the waltz of the Lemmings at the moment
I have just called into Europe and am roaming through the last 2,000 years of life in the trees, so to speak ... As most scientists know, the climate has changed significantly for time to time in the last 2,000 years, and 20,000 years the hole place was under 2-5 kms of ice?! To briefly digress from the magnificence enduring presence of gold ... (some things dont change?)
The Little Ice Age was a period of bitter winters and mild summers that affected Europe and North America between the 14th and 19th centuries. The cold weather is well documented in written records and supported by paleoclimatic records such as tree rings, glacial growth, and lake sediments. These paleoclimatic records serve as proxies that register past temperatures, confirming that it was colder than usual.
Thanks to paleoclimatic records, climate scientists have identified four cold and warm “climate epochs” during the past 2,000 years: the Roman Warm Period, which covered the first centuries of the Common Era; the Dark Ages Cold Period, from 400 to 800; the Medieval Warm Period between 800 and 1200; and, most recently, the Little Ice Age.
The Last Ice Age in Europe was at its peak about 20 000 years ago. At that time in the Northern part of Europe, many areas were covered with ice as much as 3km thick (defintiely more in places?). The mountainous regions of the Southern part of Europe, for example the Alps, Balkans, and Pyrenees, were covered with thick ice sheets...and living int he UK was not that desirable despite the enticing visa plan they had operational?
All the best, keep a sense of humour
best
The Gnome
Stock markets in Europe traded mixed in the premarket on Wednesday ahead of the final April consumer prices report for the euro area. Several European Central Bank leaders are due to provide their insight into the economic situation today. Meanwhile, Germany's Siemens and Commerzbank already posted their quarterly earnings this morning.
The DAX gained 0.07% at 8:02 am CET. At the same time, the FTSE 100 traded flat and the CAC 40 dropped 0.08%. The Eurostoxx 50 declined by 0.11%.
The euro traded 0.09% lower against the dollar at 7:59 am CET, selling for 1.08531, while the pound sterling lost 0.20% against the American currency to go for 1.24628.
Baha Breaking News (BBN) / MX
Happy hump y’al
Hi Goldgnome.
An interesting subject.
Solar And wind farms, but they are limited by lack of wind and daylight.
I find it hardto beleive they forgot about wave power and rise and fall in tidal esturies-
Mostly I suspect due to " Greens " and planning permissions, short term ,not on my patch.
If I K Brunel was asked for a solution he would come up with a solution and start work within 2 years, A real Engineer. Of amazing ability.
Interesting discussion on the science and engineering aspects of energy production.
https://www.youtube.com/watch?v=reaABJ5HpLk
There is so much hot air that is not helpful.
I appreciate is off topic, but worth a listen, as energy matters do crop up very often
regards
The Gnome
Massive drop during NYMEX trading hours.....funny story.
Physical in the sense of central bank buying rather than jewellery...
Market is manipulate to create volatility, only way left for financial to make money.
Today retail sale comes lower that expected, gold price spike left and right to close stops, and of course in stead of rising it goes down .
Let see if 1950/60 holds..
The physical buying was in the jewellery trade rather than central bank activity in the previous missive.
When Bloomberg pump gold it is always as far as I can remember at a top in price as they did so last week. The caveat clue was that physical buying in both India and China had fallen away in the last 3 months. Today USA treasuries broke out from down trends and gold now retreats. It will be interesting to see how hard the gold price pulls back. Will hold my rather modest Centamin position and see how this plays out.
Tibbs yes I understand just emphasising a point when it comes to questioning the accusation that Centamin has gifted Capital a contract that is lining the pockets of Capital's shareholders with over $100 million of cash at the expense of us Centamin shareholders.
It means Capital would have to move 120 million tonnes for $140 million or $1.20 per tonne of waste
I don't understand Cowichan's motive for claiming that we are hypocrites working off misinformation unless of course he does have other more accurate information.
Profit margin vs. return on investment (ROI)
When trying to determine how much profit you stand to make on the sale of a listing, there are two main methods for calculating profit: Profit Margin and Return on Investment (or ROI).
https://help.informed.co/en/articles/1651384-profit-margin-vs-return-on-investment-roi
Return on investment and profit margin sounds like they are the same thing. Is this the case or are they different? I know that ROI deals with the investment value of a product, but is this not the same as when you calculate your profit margin?
https://beprofit.co/a/community/business-metrics/are-roi-and-profit-margin-the-same-thing
Mr Bond I am not buying to rent just using it as an example to understand Capital's waste contract who is said to be earning 30% ROI at Sukari for their waste contract and a figure of $100 plus million earning that Capital are making on a $2 per tonne waste contract which doesn't compute in my calculations.
So if Capital has a contract at $240 million and they have a ROI of 30% then they are achieving approx $72 million divided by 4 as it is a 4 year contract so an annual return of $18 million before costs.
And also take into account inflation.
Gets complex, so best a sypathetic accountnt,many are not.
Yes you would need to adjust your apparent earnings by reducing it by all your maintainance costs.
Capitol gains tax if you sell your property after 20 years is similar so its important to keep a full record of every improvement or other expenses over the years.
That reduces your liability,
Mr Bond take a look at Capital Mining's (Capdrill.com) Financial's for 2021 and 2022 on their web site because if they are bringing in abnormally high profits I can't see them in fact 2022 is way down on 2021 albeit not bad numbers.
As I read ROI if I buy a house for £200,000 and rent it out for £1,000 per month my ROI for the year is £12,000 or 6% per annum and over 4 years 24%. This doesn't however cover the costs of maintenance, cost of finance and tax or any other costs, so nice that there is a ROI but this isn't profit.
ROI is return on investment, from original cost, so if you inveated 10000 and finished at 100000 including in this case less any costs to your investment / ROI would be 90% higher.
This could be over several years ,wheras profit is annually.
So it is slightly different in that respect.
Its many years since I was in accountancy.To many to mention.