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Luck ,pegging their BRICS currency to Gold would not make their exports more expensive, but others with not much Gold reserves in comparison to their money in ciculation , ie debt.
Those countries Fiat paper currencies would lose their value, that is inflation.
So it is clear their imports would be more expensive.
But if they need those commodities the only option is to pay.
Have to say agree and happy that central banks drop $ and buy gold, wise divesting at times when Fed rate is halting and especially because the combination of high inflation and high rates is choking the US economy.
But not just the US, dangers of defaults on debit are surfing all over the western world, for example I learned that Volkswagen is about to take on some $300 billions in debit, in trying to catch up with the EV wagon and not considering the internal combustion car assets they will have to write of...
But for U$D to lose its global currency status, have the feeling that gold wont be part of the equation, but a simple side effect of USA foreign policies including indeed sanctions.
The BRICS countries to create their own commune currency and challenge directly the U$D, they would have to value this currency, against a financial and economic equation among these countries, which take in consideration their current exchange rate against possibly the U$D itself. If they peg it against gold they would not have and metrics of comparison with the rest of the world with witch they also trade. Also pegging against gold would run the risk of creating a currency becoming too expensive for exports...
So far they have been doing only bi-lateral trade agreements which on its own doesn't challenge the U$D but rather is creating many discrepancy in commodities pricing....This also is a side effect which I am not so sure how will evolve within BRICS and around the wider world economies...Interesting times
It’s a no brainer at the mo, especially after the last set of results.
At some point the “drop” of inflation will accelerate and gold will shine as will this- gold has stayed well considering the hawks in the FED…
Hi Dasut,
I agree with your appraisal about why things went so wrong and how to put things right and I feel pretty sure that Kees Dekker would feel the same , especially about the strip ratio!!
Thank you as ever - check your post every day before markets open
European stock exchanges were lower in the premarket hours on Monday with investors anticipating the Institute for Economic Research (Ifo)'s report on Germany's business climate. In addition, Deutsche Bundesbank (Buba) will be revealing its monthly report later today. Philips N.V. and Credit Suisse Group AG both released their first-quarter financial reports earlier.
The Euro Stoxx 50 dropped 0.17% at 8:00 am CET. Frankfurt's DAX declined 0.24%. The CAC 40 fell 0.26%. London's FTSE 100 slipped 0.27%.
At 7:57 am CET, the euro lost 0.13% versus the dollar, to sell at $1.09776. The British pound traded 0.11% lower against the dollar, going at $1.24264.
Baha Breaking News (BBN) / AB
Happy Monday y’al
What strong gold says about the weak $US
Too confident in the indomitable dollar, the US saw sanctions as a cost-free way to fight Russia without risking troops. But it is paying the price in lost currency allegiances, with gold left as the main safe haven.
Today commentators overwhelmingly agree that a weakening US dollar cannot possibly lose its status as the world’s dominant currency because there is “no alternative” on the visible horizon. Perhaps, but don’t tell that to the many countries racing to find an alternative, and such complacency will only accelerate their search.
The prime example right now is gold, up 20 per cent in six months. Surging demand is not led by the usual suspects – investors large and small, seeking a hedge against inflation and low real interest rates.
The heavy gold buyers are central banks...
Instead, the heavy buyers are central banks, which are sharply reducing their dollar holdings and seeking a safe alternative. Central banks are buying more tons of gold now than at any time since data begins in 1950 and currently account for a record 33 per cent of monthly global demand for gold.
This buying boom has helped push the price of gold to near-record levels and more than 50 per cent higher than what models based on real interest rates would suggest. Clearly, something new is driving gold prices.
Look closer at the central bank buyers, and nine of the top 10 are in the developing world, including Russia, India and China. Not coincidentally, these three countries are in talks with Brazil and South Africa about creating a new currency to challenge the dollar.
Their immediate goal: to trade with one another directly, in their own coin. “Every night I ask myself why all countries have to base their trade on the dollar,” Brazilian President Luiz Inácio Lula da Silva said recently on a visit to China, arguing that an alternative would help “balance world geopolitics”.
Thus, the oldest and most traditional of assets, gold, is now a vehicle of central bank revolt against the dollar. Often in the past both the dollar and gold have been seen as havens, but now gold is seen as much safer. During the short banking crisis in March, gold kept rising while the dollar drifted down. The difference in the movement of the two has never been so large.
And why are emerging nations rebelling now, when global trade has been based on the dollar since the end of World War II? Because the US and its allies have increasingly turned to financial sanctions as a weapon.
Astonishingly, 30 per cent of all countries now face sanctions from the US, the EU, Japan and the UK – up from 10 per cent in the early 90s. Until recently, most of the targets were small.
Go gold, its about time the US$ was recognised for what it is ...a tool of US policy and hegemony
the gnome
Yes, and moral rectitude is amiss int he Middle East as well, which i the vhannel for the gold. The artisinal gold from West Africa goes through Dubai as well by the bucket loads.
Its the poor citizens who are fleeced, as there is no tax paid on the gold smuggled out. Nor the diamonds, And of coure in Zimbabwe we have the appalling mess made of farming as well by the political class. They could not do any worse if they tried
regards
the gnome
gnome I thoroughly agree there would have been a very detailed study carried out and such studies are easy to compile with the number of software packages that have been developed. All of which would be able to play what if analysis comparisons.
I am certain you are correct about some eye watering numbers that would have impacted the SP and ??? the seriousness of an unstable wall at any other time than when you have nowhere else to mine of a half decent grade.
Horgan must have been sh---ing himself when the pit boss said all of your nightmares have come at once.
That is why I feel the studies had already been done and the news of an unstable wall brought forward the planned cut back.
I have to agree with geologists running a mine and to then be replaced by an accountant? Experience has to count for an awful lot when running a mine and when Josef had Harry Micheal and Trevor Shultz on the team both of whom had experience in bucket loads I felt comfortable.
Like you I again agree that history can't be changed and we must look forward, as I have said looking forward to the Doropo PFS but really looking forward to the end of the waste contract.
Don't care what anyone says a 30% reduction in the strip ratio will positively impact the bottom line.
Yes very sad Mr Gnome, it is apparent that moral rectitude is a very scarce commodity in Africa!
Thank you Mr Gnome, seems to confirm just why Africa isn't the place to try to carry out any legal business!
New comedic is thin on the ground- social media puritans, pc puritans wrecking everyone else’s fun- the living for others and respecting the majority has vanished into the world of total naracism we now live in- we know longer have the truth, just “our own truths”, “you cannot offend me”… the world’s gone bonkers
Here is some informed comment on another favourite subject of yours.
Enjoy :)
https://youtu.be/6Tz1MiX1p5I
It begs the question as to what would the POG be if this sort of behaviour was illegal (which it is meant to be?)
https://www.youtube.com/watch?v=evWEuVR1XIs
quite sad
the gnome
We could do something exciting and invent a new demographic unit Russina...LOL
Sad to see Barry Humphreys pass along. Loved the satire, and now we need it more than ever (or do we have it more than ever?!). Could you imagine the send up of the US Presidential race (s)...or bunny hopping. Just so much material to hand, where is the new talent!!!
https://www.youtube.com/watch?v=mOduzg0hn-k
https://www.youtube.com/watch?v=lSdt1B_4Giw
cheers
the gnome
Hi Mr Gnome,
New investors are often puzzled why the share price seems to languish at lower than what might reasonably expected values and why the market seems unimpressed and lacking confidence in the company's, by comparison longer term investors are all too painfully aware of the reasons and how many times the guidance promises and promised updates on other projects have failed to rematerialise at the last minute!
As i have stated in the past we shareholders have been taken for granted and deceived by the previous management far too often , in fact deception and lies seems to have been the custom and practice of the previous management which is why we are where we are and that shouldn't be forgotten, I agree unforeseen occurrences can happen in mining, but the consequences bad mining practice at Sukari which has led to our present dilemma was warned about in 2015 and subsequently denied and ignored by the previous management!
So so now is not the time for sweeping under the carpet the years of deliberate bad mining practice and erratic performance until the promised results are delivered, until then people need to be on their guard!!
Ha HA , be careful Gnome you will be accused of being Russian or Chinese .
Not that you care .
For those that follow the plight of the US politics and the US$, there are some gigantic revelations being made in the US at the highest level. We all know about the lst President being up for concealing payouts to a former Play Bunny. We know Foxtel is paying up for numerous biassed reportings of the last presidential elections.
But the the most significant revelation is just dawning...An all-time media blackout is in effect. We’re experiencing real-time Sovietization.
Now to the current President, and some interesting events...
It transpires that the infamous incident before the 2020 election in which 50 former intelligence officials signed an open letter declared a New York Post expose about Hunter Biden's laptop to have the “classic earmarks of a Russian information operation” was, allegedly at least, instigated at the behest of the Joe Biden campaign. This at least is the allegation in a letter to Secretary of State Anthony Blinken released by Jim Jordan, chair of the House Judiciary Committee, and Subcommittee on the Weaponization of Government.
In that letter, which is not easy to find, you’ll see three snippets of dialogue from questioning of Morell, who appears to have organized the open letter. In the first snippet, he explains that the idea originated with a call from Blinken, then of the Biden campaign, and that absent that call, Morell wouldn’t have done what he did:
In the second snippet Morell bluntly explains that he did it because “I wanted him to win,” him being Joe Biden:
By any marker, this is an enormous news story. If we go by the usual measuring stick of American scandal, the Watergate story, this potentially meets or exceed that, on almost every level. Does it reach into the current White House? Check. Was it a craven attempt to subvert the electoral process? Check again. Did a presidential candidate engineer a massive public deception? Yes, resoundingly. Did it involve intelligence agencies? Yes, and these weren’t amateurs like Nixon’s plumbers. These were 50 of the most powerful people in the intelligence world — including five former heads or acting heads of the Agency in Morell, John Brennan, Leon Panetta, Michael Hayden, and John McLughlin — conspiring to meddle in domestic politics on a grand scale. ...
What can one say? The political processes are about as robust as their financial processes.
https://www.racket.news/p/news-blackout-in-effect?utm_source=profile&utm_medium=reader2
https://www.youtube.com/watch?v=nSXs_IkyGf4
Off topic perhaps, but there is a social license that is deteriating very rapidly in the US
enjoy the rest of the weekend,
the gnome
Dasut
I would think there must have been some robust investigation as to the commercial viability of a significant cutback, to look at the commercial and technical case for trying to increase the open pit production to meet forward projections. No back of the envelope thumb suck. Given the impact of the exercise, not to mention cost and time frame, I would have thought it good business practise to share this with the owners (shareholders) of the company. The counter argument could have been that the figures might have been of such concern to analysts and investors that they put the SP in a falling spiral situation...?
I think you touched on an issue for me in that the previous mine plan did not have eough optionality built into it, to cover for such a situation let alone the wall failure. Having options to cover such events is fundamental to a successful mine plan and successful mine project. So I come back to the previous Mine Management and their amateurism.
A Tier one orebody can forgive a lot of Mine Mangement mediocrity, and it look slike Sukari has allowed this.
I am always very circumspect when I see a Geologist running a Mining Operations, .. it nearly always end in tears, as they have different experiences, education and mindsets, some unsuited for runing a comlpex mining operation. The last CEO was a Geo, and all I can say is thank goodness he has done...
The endless looking back is not really getting us too far ahead, and I suggest people look at what the future holds rather getting bogged the past
best
the gnome
Spoonington I understand your pain and you put your case very eloquently and I think you should ask Horgan to provide us with an executive summary with numbers covering the decision for the waste contract.
Personally I think the need for a concerted effort to open up the mine with a major cut back was being analyzed before the west wall instability. Like you I have never seen a dedicated waste contract but given the circumstances I struggle to see an alternative solution.
Horgan could better spend his time talking up the exploitation potential of the 160km2 and the new concession.
hi Dasut,
I was seriously considered considering going to the FCA concerning the Josef El Raghy sale of 20 million of his shares in 2017 which seems suspicious when considering he had privileged access to information regarding the future grade problems that Sukari would suffer in 2018.
Like many other share holders I feel that we have been deceived because it is not easy for ordinary people to understand the geological and analysts reports, that said though ordinary investors should able to rely on the company being honest about future production predictions, possible problems etc.
I did try to find out from Centamin at the time the reason why the CEO was disposing of so many shares, 20 million all at the same time, I was told that they weren’t sure, but likely he was probably just diversifying his portfolio, or that he wanted to use the money to set up a new mining venture, what a crock!
In the 2018 Q1 Andrew Pardey was still predicting that 580.000 oz were possible for that year, yet three weeks later Centamin issued an RNS warning that production guidance was going to around 505.000 due to poorer than expected transitional ore grades, difficult geological strata and problems with plant, which it is now apparent was the sole but inadequately maintained LHDR on which the understated, but so very essential underground contribution to overall production relied!
In 2015 the glossing over of inherent open pit grade problems was denied by Andrew Pardey who claimed Kees Dekker was wrong, but when Kees asked Andrew Pardey to provide the full production stats so as to avoid Kees having to make roundabout calculations, the correspondence ceased!
As you point out they should have tackled the problems far earlier, Kees Dekker mining analyst believed their forecast open pit grade could never materialise as they seemed to consistently overestimate it, or underestimate the dilution!
I am aware that I am nowhere near as knowledgeable on mining as you, or other former mining professionals on here, however I do resent being lied to and recognise "Bullsh(it' it is painfully apparent we were given plenty of that by the previous management!
Hi Mr Bond,
Mr Tibbles was a very clever cat who knew what he liked, snoozing on the back seat of one of the top end saloons in the showroom after he had finished greeting early morning service customers or carried out a patrol of his empire to ensure it was rodent and strange cat free, after which he would enjoy a snack of finely sliced smoked salmon or tuna chunks, although he was also partial to the grilled diced chicken thigh's which a neighbour brought into the garage every Monday morning, as well as the cat nip and other treats left by a number of the customers who still still fondly remember the way he used to meet and greet them in the reception and used car showroom!
Best
Tibbs
From an accounting point of view when the expenditure is classified as non-sustaining capex it is not included in the calculation of AISC, it is definitely still a cost but if you are using AISC as a metric in your investment analysis you need to take into account that the waste movement expenditure is largely being excluded from AISC so you should not expect the finalisation of the program to have any significant immediate effect on AISC.
My problem with the waste movement program is not the program itself, shifting waste is a part of mining, it is the way it has been conducted. It is often more efficient to incorporate waste movement as part of ongoing mining operations rather than a separate stand alone project. Whilst this is not always the case, I would expect detailed analysis work to be done in order to arrive at the decision to instigate such a program, why have we not been made privy to at the very least a summary of this analysis.
The lack of information leads to the problem that we are all essentially guessing at the moment, whether it be your opinion, my opinion, Kees Decker’s or anyone else’s, none of us have sufficient information to make a properly informed analysis - with the waste movement program cost being measured in the 100’s of millions I find this level of disclosure to be unacceptable.
I reduced my CEY holding back to my core long term holding earlier this week, much as this pains me I am no longer prepared to take speculative risk on the current management team.