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Liberum has suspended coverage of gold miner Centamin (CEY) as the dividend outlook appears shaky.
Analyst Yuen Low placed his ‘buy’ recommendation and target price of 119p ‘under review’ after the group cut its full year dividend by 44% despite maintaining output guidance. The shares softened 5.2%, or 5.6p, to 101.5p on Thursday.
Low said full-year 2022 production was 1% lower than the previous year, while earnings were in line and net profit slightly ahead by 4%. However, earnings per share were down 56%, leading to the steep cut in the dividend.
‘The balance sheet remains very strong, and the final divi was in-line,’ said Low. ‘However, unlike in 2021 and 2022, there does not appear to be a committed minimum dividend for 2023. We temporarily suspend our rating and target price while we review our post-full-year 2022 forecasts
https://www.investorschronicle.co.uk/news/2023/03/16/centamin-eyes-500-000oz-production-return/
Companies roundup: Retailers underwhelm and Centamin beats guidance
https://www.investorschronicle.co.uk/news/2023/03/16/companies-roundup-retailers-underwhelm-and-centamin-beats-guidance/
Daily Mail: The boss of Endeavour Mining saw his pay more than halve last year but still took home nearly £9m.
https://www.dailymail.co.uk/money/markets/article-11869625/Endeavour-mining-boss-saw-pay-halved-year-9m.html?ns_mchannel=rss&ns_campaign=1490&ito=1490
** Status as of October 21st, 2022 **
PR-334 RENEWAL IN PROGRESS
PR-335 RENEWAL IN PROGRESS
PR-535 ASSET
PR-536 ASSET
PR-559 RENEWAL IN PROGRESS
PR-778 RENEWAL IN PROGRESS
** Status as of March 16th, 2023 **
PR-334 ASSET (expires 06/11/2024)
PR-335 ASSET (expires 06/11/2024)
PR-535 ASSET (expires 03/06/2024)
PR-536 ASSET (expires 02/28/2024)
PR-559 RENEWAL IN PROGRESS (expired 06/08/2022)
PR-778 RENEWAL IN PROGRESS (expired 05/14/2022)
Of course the most important permit is still in limbo, that being permit PR-559 (240km2) which contains all the Doropo gold deposits...
FOMC next week ,laser focused on meeting .
Tells all, we are invincable, so much confidence ,but they do not look at anything else other than their own announcements.
If they could talk to the world without threats as to their answers ,the story would be very different,maybe. ha ha.
taken from this mornings notice
RNS Number : 1158T
Centamin PLC
16 March 2023
PAYMENTS SPLIT BY PAYEE - Payments to Government
during the year ended 31 December 2022 in USD
BURKINA FASO: Konkera Project (iv) Ministry of Mines
$ 668,282 Burkina Faso Tax Office
Other payees $ 1,099
---------------------------------------------->>>>
I think shareholders might want to question Centamin's 'cost control' oversight.
Seriously, who authorized a payment of darn near a million dollars in 2022 when the company told me explicitly on several occasions the Konkera project was LONG relinquished to back to the Burkina ministry of mines ?
If they sent you a bill in the mail why not return to sender? What's the worst that would happen?
Ooops ~6.12% :-(
The reaction to the SP today eg down ~5%. although it was a mental way to get there
What reaction. I was commenting on Kitco article.
Just good marketing for cey on kitco ,closesly followed in USA.
Yes but they failed to mention a 29% reduction and a 3% reduction on EBITDA - hence the reaction… all on page 1 of the RNS …
Hi Mulder,
This may help to make the profit share more clear.
You will find all the details in the pdf file. One page in Arabic, then one page in English
http://gate.ahram.org.eg/Media/News/2017/2/26/2017-636237441861789391-178.pdf
Also see my post below
Centamin Profit Share with Egyptian Government Explanation Buchanon 15.07.2014
29/06/2016
The profit share will be what the profit share will be – the joint venture partner, ie the government, sits in the 50% owned subsidiary Sukari Gold Mines. The management board of this subsidiary has representatives of the government and an equal number from Centamin. All of the investment into the Sukari mine is audited, with Sukari Gold Mines very much being a part of this process. Similarly, all gold sales go through Sukari Gold Mines, where the operating surplus will be divided 50/50 between the government and Centamin, once the original capital has been repaid back to Centamin and its shareholders. The 3% royalty has been paid to the Egyptian Treasury ever since production started (this also goes through SGM).
With the above in mind, there is no issue with regards to the money that has been ploughed into Sukari, particularly the costs of Stage 4 (c.$350m) – this needs to be recouped before any of this operating surplus can be shared. This is not due to kick in until later this year, or possibly in Q1/Q2 next year. It is all a function of the ramp up in production and the gold price.
There is no dispute between Centamin, the Egyptian government and/or EMRA, nor the 50/50 Sukari Gold Mines subsidiary. What you are getting is probably a series of people mouthing off that they want profit share now. This is a political game more than anything, as the deal is the deal (in fact Centamin have advanced the country a few million dollars as a demonstration of their faith in this deal – this will also be recouped out of future operating surpluses due to the government).
What is wonderful is that very few people seem to understand what this 50/50 deal is – it is effectively a 50% tax on free cash flow. In fact the 50% will not kick in until 2016, as in 2015 this will be 45%. To counter this there is no VAT, no corporation tax, no other taxes to pay all beyond the above and the royalty, which on a blended rate compares reasonably well with other 1st world mining jurisdictions (like the US, Australia, Northern Europe etc).
Centamin posts profit of 72.5 m for 2022 as gold production up in Egypt.
Not bad ,making the Kitco News page, maybe of interest to investors there.
Which can only be good for SP.
Hi Dansul,
Share price not so far out until the "Crack" in the wall forced the disclosure of the years of glossing the Sukari grade problem and brought about the need of $450 million expenditure for waste clear up with the re sculpting of the open pit walls !
These are the main reason the SP is on it's butt!
old and silver prices are weaker in midday early U.S. trading Thursday, on profit-taking and corrective pullbacks after both metals scored five-week highs Wednesday. Veteran market watchers would deem the pauses as being actually healthy for the fledling price uptrends in gold and silver to continue. April gold was last down $9.20 at $1,922.00 and May silver was down $0.197 at $21.685.
Global stock markets were mixed overnight. U.S. stock indexes are higher at midday. The marketplace has been at least temporarily assuaged by news the Swiss central bank has thrown its financial support behind the troubled Credit Suisse bank. Credit Suisse's CEO said his bank will continue its "strategic transformation to deliver value to our clients." Credit Suisse's stock price jumped 20% Thursday. However, many long-time market watchers are "waiting for the next shoe to drop" in the banking crisis. Rumblings in the marketplace say Republic Bank might be the next domino.
The European Central Bank met Thursday and raised its main interest rate by 50 basis points. The marketplace took the ECB move in stride, as least initially. The Federal Reserve's FOMC meets next week and there is a hot debate in the marketplace regarding whether the Fed will raise its main interest rate by 25 basis points, or stand pat amid the U.S. and European banking crises. There appear to be valid arguments for both sides, but the ECB rate hike today seems to give the Fed the green light to hike by 25 basis points.
https://www.kitco.com/news/2023-03-16/Gold-silver-see-routine-profit-taking-corrective-pullbacks.html
Its the same as last year , percentage wise
How much of a cut are the government taking?!
Seems to be rising and perhaps why the EPS has shrunk.
RazorsEdge, You are so funny, I like your comments about you wife's hair...LOL
At least some here are very calm during the false storm.
Remember in Med 2020 it was over £2.03, it was no reason either to go that high, market game play.
GLTA,
Dan
Rebess are lurking?
1.63 Canadian is 98.2p UK. Centamin is pricing in $1800 USA gold price at this level.
We are talking US market mentality,which it seems affets everyone.
Presently it is down 15 cents or 8.43% to $1.63 on the TSX Venture. A little over done here but maybe a good time to Buy
Lol Mr Bond- who knows- where the SP is now is what Id have expected after the RNS but not how it’s got there today! As for Kitco and others, they don’t know much more than us- most are
like football analysts after a game- if a team near the top top wins a game 1-0 with only 1 chance to score- they say “sign of a good team, taking chance and winning - league winning form”, but if they lose 1-0 with only making 1 chance they say “you cannot expect to win a league by only making 1 chance- poor football” lol
B-oody hell!
Looks like I did jinx it!
Jim Wicloff on Kitco puts Gold down to profit taking.
It will take a few days for normalising ,especially after the Bank chaos of the past days.
IMO
MrBond Fresnello was down 5% at the same time Cey was down 8% and Gold had dropped from $1930 to $1910’ish at the same time …. So I think this more than likely the cause.
Tornadotony as for my wife’s hair, her boyfriend has been looking after it for years…
Still fair play to you for doing the right thing.