The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Thanks Tibbs - the settlement payment sure was hidden away!
Why are details only coming out now, with 2022 year end results?
Just in case any other shareholders want to ask Centamin investor relations it can be found here:
https://www.centamin.com/media/2886/cey-rns_fy22-results_final_160323_website.pdf
Included within non-current other creditors and current other creditors and accruals is $7.3m (2021: $9.8m) and $4.9m (2021: $2.4m) respectively in relation to the remaining instalments of a $17.6m settlement agreement signed with EMRA in 2021
What I find particularly disturbing is the EMRA's ability to demand monetary compensation at a whim without Centamin shareholders knowing what the heck payment was in regards to.
IMO the waste contract is a big liability going forward - cuz if the EMRA feels it's unfair to capitalize - guess what - they'll want another settlement and this time it won't be a mere $17.6 million - goodbye dividend ad infinitum
Yeah but I do get a stamp in my passport when I go to Spain lol
Britain’s trade has been hit significantly by its departure from the single market. Trade in goods with the EU fell sharply after the Brexit transition period ended, with UK imports from the EU dropping by approximately 25 per cent more than UK imports from the rest of the world, a trend which persisted throughout 2021. A recent revision to the official trade data (marked as “EU adjusted” in the chart below) has shown a slight uplift in imports compared to previous data, but the EU imports are still shown to have underperformed the non-EU ones.
https://institute.global/policy/three-years-brexit-casts-long-shadow-over-uk-economy
The UK economy will shrink and perform worse than other advanced economies, including Russia, as the cost of living continues to hit households, the International Monetary Fund has said.
https://www.bbc.co.uk/news/business-64452995
Much speculation has taken place in the past five years around the impact of Brexit on the EU and UK economies,
https://www.gerhardschnyder.com/brexit-impact-tracker
Sun, 26th Mar 2023 11:34
Alliance News
(Alliance News) - The UK economy is 4% is smaller than if the country had remained in the EU, the chair of the Office for Budget Responsibility said.
Richard Hughes said the effect of Brexit on the economy is on the "magnitude" of the coronavirus pandemic and rising energy prices, and the country is seeing the "biggest squeeze on living standards" on record.
He told the BBC's Sunday With Laura Kuenssberg programme: "But we do expect, as we get past this year and we go into the next three or four years, that real income starts to recover.
"But it's still the case that people's real spending power doesn't get back to the level it was before the pandemic even after five years, even by the time we get to the late 2020s."
Hughes said this is "partly" because the UK's growth has been held back by supply constraints on "key drivers" of growth.
He spoke of the country losing 500,000 workers, combined with "stagnant investment" since 2016 and slowing productivity.
Asked how much stronger the economy would be if the UK had remained in the EU, he said: "We think that, in the long run, [Brexit] reduces our overall output by around 4% compared to had we remained in the EU.
"I've struggled to put it in any kind of sensible context.
"It's a shock to the UK economy of the order of magnitude to other shocks that we've seen from the pandemic, from the energy crisis."
By Ted Hennessey, PA
Hi Cowichan,
Very fair and relevant questions!
Well done for picking up on this what appears to be an important change of mine plan that was tucked away on page 56, now why was that?
I wonder why the analyst haven't picked up on this?
Capitalised deferred stripping costs are included in ‘Mine Development Properties’, within property, plant, and equipment.
These form part of the total investment in the relevant cash generating unit, which is reviewed for impairment if events or a change in circumstances indicate that the carrying value may not be recoverable.
The stripping costs associated with the current period operations are expensed during that period and any stripping activity cost associated with producing future benefit is deferred on the balance sheet and amortised over the period that the benefit is received i.e., is classified as capital expenditure, creating a Deferred Stripping asset.
The pit components are the separate stages of the open pit mine. For each component, the stripping ratio is determined, and costs are capitalised if the stripping ratio in the year for that component is greater than the overall LOM stripping ratio for that component.
The change in mine plan* has necessitated an increase in stripping activity during the year (more than has been experienced in the past) and includes activity from both internal and external parties. As a result, there has been a significant increase in the stripping activity. Based on the calculations performed the amount capitalised to the balance sheet for 2022 is US$141 million (2021: $59m).
Capitalisation occurs when the strip ratio exceeds the life of mine strip ratio for that stage.
Only the costs related to the excess stripping are capitalised. In line with the accelerated stripping programme (2022-2024) we expect to be above the life of mine strip ratio, resulting in a larger quantum to be capitalised to the balance sheet.
--->>
Included within non-current other creditors and current other creditors and accruals is $7.3m (2021: $9.8m) and $4.9m (2021: $2.4m) respectively in relation to the remaining instalments of a $17.6m settlement agreement signed with EMRA in 2021. ***
By its nature, elements of the cost recovery mechanism within the Concession Agreement are subject to interpretation and ongoing audits by EMRA.
It is possible that future settlement agreements may be agreed with EMRA in relation to historic items.
The Directors have assessed that it is not probable that any additional settlements with EMRA will be required as at 31 December 2022, and therefore no additional provisions have been recognised within these financial statements
pg 56
---->
Questions:
1)What was the settlement agreement for $17.6 million signed with the EMRA in 2021?? *** (see above)
2) The EMRA can look back at historic capital costs deducted & audit them (like the massive waste contract Centamin is currenty undertaking) & deem them inadmissible - requiring a settlement payment (as referred to above) Who's to say this won't occur?
3) Centamin refers to a 'change in mine plan'* above but as far as I know the mine plan hasn't changed since 2017 - where's the new mine plan? Why hasn't it
Thanks Tony ,I agree.
US time changed 10 days ago.
We can probably expect a lot of manipulation of precious metal prices on the 28th by USA open and close.
I remain 50% in Centamin at a price I am comfortable with. Cash in the portfolio was reduced from 35% to 28% to build up Centamin now in 3rd place overall in my portfolio and i expect it to go into second place. Plenty of fire power if it gets ugly and enough on if everything goes to blazes in a hand basket and gold and the miners take off.
A part of me thinks $1800 ounce last year is the new $1980 per ounce as real inflation is certainly happening in the UK. If central bankers, politicians and the media said it was daylight outside, I would draw the curtains expecting it to be night time. The whole system stinks to high heaven as it appears to only serve a select few. The values of hard work, rewarding innovation and intelligence and those in positions of responsibility acting with integrity feel like a by-gone era of decades ago.
For those in the UK clocks go forward an hour tonight and I wish everyone the best as we head into Spring. Tony
Russian troops have killed thousands and displaced millions. They are also destroying Ukraine's environment, toxifying its soil, and burning its forests and fields. 600 species of animals and 880 species of plants are now under threat.
Altogether, the damage to the environment amounts to over 50 billion dollars. But ecocide, the act of severely destroying the environment, is not considered an international crime.
https://secure.avaaz.org/campaign/en/make_ecocide_illegal_loc/?trtqjhb&v=502477191&cl=20290900020&
Hi Tibbs,
Thanks for your thoughts. I agree that at the time we did not know what Pardey et al were doing. My point was more that now that we do we condemn it while simultaneously objecting to the present regime investing for the longer term. As such i wonder whether we are not a little inconsistent.
Agree that it is the lack of trust that is causing the current share price vis a vis gold.
Best wishes,
Prof
Ukrainian children who returned from Russia after months of being deported have recounted the political indoctrination and mental trauma they endured during their detention.
At least 17 children, residents of besieged Kharkiv and Kherson, came back to Ukraine this week, non-profit Save Ukraine said in a release on Thursday.
https://uk.yahoo.com/news/rescued-ukrainian-children-recount-horrors-090928360.html
Armed conflict in eastern Ukraine erupted in early 2014 following Russia’s annexation of Crimea. The previous year https://www.cfr.org/global-conflict-tracker/conflict/conflict-ukraine
Russia launched its well-planned armed aggression against Ukraine on 20 February 2014 with the military operation of its Armed Forces on seizing a part of the Ukrainian territory?—?Crimean peninsula. This date is not even denied by the Russian Ministry of Defense, as it is indicated on the departmental medal “For the return of Crimea”. In fact, only the next day Viktor Yanukovych fled from Kyiv; and it was already 22 February 2014 that the Verkhovna Rada of Ukraine adopted the Resolution “On the dissociation of the President of Ukraine from fulfillment of constitutional powers and appointment of early presidential elections in Ukraine”, used by Russia as a pretext for accusations of the alleged “unconstitutional coup in Ukraine”.
https://mfa.gov.ua/en/10-facts-you-should-know-about-russian-military-aggression-against-ukraine
Hi Prof,
I thin we all accept that the unexpected or unpredicted can occur on occasions in mining and that mistakes can happen and that we have given the benefit of the doubt on more occasions than I care to rememberer,not to mention being patient.
But I'm pretty sure that the majority of us were unaware the short term game for quirk profit that Pardey and the El Raghy's were at, Pardey lied on webinar Q & A to various callers including me and after claiming that the 2016 'Seeking Alpha"article was inaccurate and despite being given the chance to correct the claimed inveteracies failed to do so and then even tried to get the editor to pull the 016 'Seeking Alpha"article which has subsequently proven to be accurate!
Although some of the senior BOD since the exposure of the state of Sukari have gone, some still remain in post which must cause some concern.
That said Martin Horgan and his new team seem to be running things properly, but until we see some measurable proof then having suspicions or reservations is to be expected.
The SP in relation to the price of gold is disappointing so it seems that market trust hasn't yet been restored,
Get them to check these facts:
NATO/US promises that NATO would not expand one inch east going back to the late 80’s.
Ukraine signing a treaty with Russia to end a previous conflict which was sponsored/guaranteed by France & Germany with the only party to the treaty who had any intention of abiding by the treaty being Russia.
Ukrainian government slaughtering their own citizens in military campaigns simply because they had ethnic Russian backgrounds & wanted to maintain their culture & beliefs.
I could go on but the above will all be labelled Russian disinformation & I will be called a Putin apologist.
Your so-called fact checkers rank alongside the US administration in terms of the reliability & veracity of their facts - a common theme - they all love to call facts Russian disinformation when they don’t align with their fanciful & deceitful propaganda!
This is not a dig at anyone and I include myself in the 'we', but are we being schizophrenic?
We know that the previous management regime played the short game to maximise profits in the short run at the expense of the long term health of the mine. Quite understandably we look at that now with the benefit of hindsight, and enduring the current pain, and wish that they hadn't.
Conversely we now have a management regime that is taking a lot of pain in the short run both on the current mine and in exploration/ new mine feasibility studies and investment, for a better tomorrow. There is clearly a cost to this and we have seen that in lower ounces, higher clearance cost, higher exploration costs and the likely investment costs in a new mine - this is pulling the dividend down. In a few years CEY could be in a far stronger position with over 500koz per year from Sukari, other satellite operations increasing the Egyptian k.oz and an additional mine in Doropo. If that happens clearly the short term pain will have been worth it and the share price will be a lot higher (gold prices notwithstanding).
Perhaps the real nervousness at present stems from a lack of trust in CEY and its management, yet so far Hogan has broadly delivered what he has said. Should we perhaps be more optimistic and capitalising on share price just over £1 when gold is at c$2k. That is what I am pondering as I contemplate buying more.
Best wishes,
Prof
The purchase of shares post the FY results is an Open Period for directors to buy shares.
They can buy as many as they like!!
China to mobilise 25,000 tonnes of citizens' gold?
Beneath the mainstream narratives surrounding the meeting between China’s president and Putin, providing a unique perspective on their crystallising financial and military alliance.
https://www.youtube.com/watch?v=f5WLOPk8WQQ
Recent banking crises reinforce the need for a secure, public banking system that puts people not greedy banks first!
https://www.youtube.com/watch?v=vV5yyuI6xXg
The war in Ukraine was fomented by disinformation and information warfare will be part of the battle.
In the UK we have seen a little of this, for example after the Salisbury poisonings. In 2018 Russia put numerous narratives into play with the aim of causing confusion and indecision rather than convincing lots of people of one false narrative. You can see that at work in President Putin’s address this week.
Now, our fact checkers are liaising with peers across the world to track and counter false claims. You can help people stop the spread of disinformation by sharing these tips on spotting false information.
I am glad to report that at the time of writing our fellow fact checkers from Ukraine are safe, though many have left the country. Their losses remind me how important it is that we all can and will keep trying to build a more open and accountable democracy here in the UK.
https://fullfact.org/blog/2022/feb/ukraine-disinformation/
In a recent discussion at the Kennan Institute, William Smirnov discussed the progress of human rights and democracy in Russia. Smirnov examined the basic relationship between political rights and democracy and assessed the progress of human rights in Russia during the transition period. He described several setbacks that have led to the restriction of democracy and suggested several ways to improve the human rights situation in Russia.
https://www.wilsoncenter.org/event/political-rights-and-democracy-russia-the-challenge-putting-ideals-practice
RUSSIAN FEDERATION
The parliamentary election in September was accompanied by unprecedented pressure on independent opposition candidates, including through barring them from running on spurious grounds. A record number of violations were reported by independent election monitors over three days of voting.
Corruption remained pervasive.
https://www.amnesty.org/en/location/europe-and-central-asia/russian-federation/report-russian-federation/
Calling NATO the instigator of Putin’s war of aggression is a distraction, not a reason. Even with East-West relations at their worst since the darkest days of the Cold War, the United States and its allies do not pose a military threat to Russia thanks to Moscow’s nuclear deterrent. That the Kremlin still plays up NATO as a bogeyman says more about Russia’s phobias than actual dangers the country faces. It is not the alliance’s enlargement that led Putin to attack Ukraine; it is Russia’s failure to become a democracy.
https://foreignpolicy.com/2022/10/30/russia-democracy-putin-soviet-union-cold-war/
Thank you Prof & Sotolo!
Bloomberg) -- Former Goldman Sachs Group Inc. banker Roger Ng, who was sentenced to 10 years in prison for his role in the global 1MDB fraud, was ordered to forfeit $35.1 million by a judge who rejected his claims that Malaysia already took all of his money.
At his March 9 sentencing, federal prosecutors had asked US District Judge Margo Brodie in Brooklyn, New York, to order Ng to forfeit the sum as ill-gotten gains from the conspiracy to loot the Malaysian sovereign wealth fund. Ng’s lawyer, Marc Agnifilo, argued that no other penalties were needed because his client had no funds left.
https://www.bnnbloomberg.ca/ex-goldman-banker-ng-must-forfeit-35-1-million-over-1mdb-1.1900011