We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Mr T
Without being an expert in UK politics (aside), it does seem to the people downunder, that Boris is somewhere between a egocentric sociopath and a fruit cake, perhaps a bit on the fruitier end of the spectrum, but be myself not fitting of making such disclosure, I ask forgiveness.
It certainly is not a good reflection on either the political process and/or the people of UK that someone like this is the best leader to lead the lemmings over what does appear to be a steep cliff.
Don't worry the phenomena is not restricted to the UK, there are a number of the outbreaks of this phenomenoa in "developed countries". One does think of another pandemic.
best of luck !
the Gnome
Thank you Cowichan,Dasut,Candid ,
From Centamin
At Sukari we have significant low grade stockpiles as we report each quarter. Currently this material is scheduled to be processed at the end of the mine life. However, as part of the life of asset work streams we are reviewing heap leach solutions to potentially bring that cash flow forward. It is important to note heap leach often yields much lower processing recoveries but is a low cost solution to monetising marginal ounces. With regards to the contained gold content this is equivalent to c.200,000 in situ ounces (pre-processing) – it is best to reference the last published reserve estimate: https://www.centamin.com/assets/group-reserves-and-resources/.
Exploring the mining concession is purely about maximising the value and opportunities across our license package. This is low investment exploration which has the potential to yield little to no capital expenditure growth as any potential satellite feed can be processed through the existing infrastructure. With regards to the blast and haul capacity, I don’t follow the comment on there being spare capacity. Both Capital and Centamin’s owner fleet are focussed on maximising productivities and efficiencies to full utilisation of our available fleets.
This has been successful to date, as investors may recall from the slide in our recent presentations showing total material outperformance in H1.
The only thing there is no impending shortage of these days is blame. Boris Johnson and his government refuse to acknowledge how Brexit has is failing British business just at a time we can afford it least. It’s the road hauliers’ fault, it’s the meat industry’s fault, it’s drivers’ fault, it’s British business’ fault. It’s everybody’s fault but their own - and Brexit has nothing to do with it. That’s the narrative, and it’s as phony as a Nadine Dorries THERE IS NO PETROL SHORTAGE tweet.
But if we are looking for any signs that the nation has seen through the miasma of misinformation and is ready to call out Boris Johnson for his central role in our troubles, then I fear we will be disappointed!
Hi MrBond,
Very fair and valid comments, indeed , agreed it suits the US and indeed our lying, inept, parasitic governments ministers to divert the blame onto the Russians !
Gas markets whipsaw after Russia offers to stabilise energy prices
UK gas contracts for November delivery soar almost 40% before falling back after Putin’s comments
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found at https://www.ft.com/tour.
https://www.ft.com/content/e06c3b5d-153d-4c86-8c49-0d5447d58e76
Gas markets swung sharply on Wednesday after Russia’s president Vladimir Putin said his country was prepared to stabilise the soaring global energy prices that are threatening to curb industrial activity and sharply raise inflation.
UK and European natural gas prices shot higher early in the day to trade at close to 10 times their level from the beginning of the year. But prices abruptly reversed course hours later when Putin hinted that Russia’s state-backed monopoly pipeline exporter, Gazprom, may increase supplies to help Europe avoid a full-blown energy crisis.
“Let’s think through possibly increasing supply in the market, only we need to do it carefully. Settle with Gazprom and talk it over,” Putin said. “This speculative craze doesn’t do us any good.”
Gas traders say one of the drivers of the rally in prices is that Russia is limiting its European gas supplies to the levels in long-term contracts, and has let Gazprom’s storage facilities in the continent fall to very low levels.
Putin said Gazprom was exceeding its contractual obligations for gas supplies through Ukraine this year.
His remarks appeared aimed at staving off criticism from Europe that Russia is holding back supplies as it awaits approval for the controversial new Nord Stream 2 pipeline, which bypasses Ukraine to send gas to Germany. That project edged closer to going live on Wednesday after a judicial opinion in the EU.
UK gas contracts for November delivery surged almost 40 per cent as trading opened to reach more than £4 per therm, having started the year below 50p. But after Putin’s intervention, they ended the day down 9 per cent, at £2.71.
The gas industry was shaken by the swings in the price. Tom Marzec-Manser at ICIS, a consultancy, said it was “the most volatile and unpredictable day that many in the industry will ever witness”
https://www.ft.com/content/e06c3b5d-153d-4c86-8c49-0d5447d58e76
When Chinese market reopen tomorrow after the holiday that could set the ball rolling.
Major European stock indexes traded higher premarket on Thursday following yesterday's selloff. Denmark and Sweden paused the use of Moderna Inc.'s COVID-19 vaccine on younger age groups. Data on housing and industrial production was set to be released ahead of the market open.
The FTSE 100 jumped 0.93% at 7:53 am CET, while the DAX gained 0.98%. The CAC 40 surged 1.10% at the same time.
The euro and the pound were both flat against the greenback at 7:54 am CET, changing hands for $1.15512 and $1.35752 respectively.
Breaking the News / MD
Thanks DASUT - always reassuring to have a pro go over the numbers and confirm we're still on course.
Cowichan sorry I should have said as at end 2020 they had 17.5 million tonnes at 0.47 grams per tonne.
Cowichan thanks and yes they do have 17.5 million tonnes of stockpiled ore at 0.47 grams per tonne (low grade) to blend with the higher grade ore.
I can't find what the cut off grade is for the plant but am pretty sure it will be somewhat higher than 0.5 grams a tonne.
So back to the question could the existing mining fleet cope with both the strip and still maintained gold production then in my opinion no it wouldn't have been possible and it was/is still the right decision to employ a construction contractor to blitz the waste to expose the ore hopefully in multiple areas.
Will Capital get a mining contract at a later date or will Cey cross hire some or all of the fleet for other projects at Sukari in Egypt who knows but after listening to our CEO he likes flexible options?
They got Mark Campbell back with 20 years knowledge of that area and of course former CEO of Aton, though always struggling for adequate fiance.
Very competent person.
'Owing to other professional commitments, Bill Koutsouras has resigned from his position as director and interim CEO of Aton'
----------------------->>
About Mr Koutsouras
'He oversaw financial advisory mandates, investment related services and the financial management and operation of the Endeavour group of companies and was involved in over $25 billion of M&A transactions and in over $4 billion of financing for junior/mid-tier resource companies. He’s one of the original executives involved in the creation of Endeavour Mining, a senior gold producer in West Africa'
-------------------------->>>
I wonder if he got a new position, elsewhere...
How commentators can blame Russians ,who no angels though, Is beyond me.
When the European Commission drags its heels in allowing Nord Stream 2 from pumping gas.
The Commission are IMHO controlled by the US.
Sorry off topic, but important.
Haha thanks Mr T and any attempted suicides aborted at the last minute can only be a good thing can't it .
Its about time these Casino antics with essential commodities were stopped!
Basel 3 for gold so they are turning to other commodities to gamble with!
Our politician's should legislate or ban this type of futures trading!
Wednesday, 10/06/2021 15:13
GOLD PRICES were little moved inside a tight trading range versus most major currencies on Wednesday as rising bond yields and interest rates were offset by fresh record highs in energy prices, spurring fresh fears of long-term inflation as European stock markets fell hard.
Western government bond prices fell again, led by a sell-off in UK debt, as the wholesale cost of UK electricity leapt 40% this morning alone on what one commentator suggested was stop-loss and short-covering moves by formerly bearish traders.
European gas prices also jumped yet again amid accusations that Russia is deliberately capping supplies.
Gold priced in US Dollars bounced $6 back to unchanged for the week so far at $1760 per ounce
https://twitter.com/notayesmansecon/status/1445680474718814210
Hi DASUT,
I have to admit I know precious little of the technical in regards to ore processing. I compiled the stockpile figures from quarterly reports.
The following is from the last annual report (I'm not sure I understand it completely!)
-------------------->>>>
Cost of mining stockpiles include costs incurred up to the point of stockpiling, such as mining and grade control costs, but exclude future costs of production.
Ore extracted is allocated to stockpiles based on estimated grade, with grades below defined cut-off levels treated as waste and expensed.
While held in physically separate stockpiles, the Group blends the ore from each stockpile when feeding the processing plant to achieve the resultant gold content. In such circumstances, lower and higher-grade ore stockpiles each represent a raw material, used in conjunction with each other, to deliver overall gold production, as supported by the relevant feed plan.
The processing of ore in stockpiles occurs in accordance with the LOM processing plan and is currently being optimized based on the known Mineral Reserves, current plant capacity and mine design.
Ore tonnes contained in the stockpiles which exceed the annual tonnes to be milled as per the mine plan in the following year are classified as non-current in the statement of financial position.
Currently at Sukari, low grade low (0.4 to 0.5g/t) open pit stockpile material above the cut-off grade of 0.4g/t has been reclassified to non-current assets as these ore tonnes are not planned to be processed within the next twelve months.
The net realisable value of mining stockpiles is determined with reference to estimated contained gold and market gold prices applicable.
Mining stockpiles which are blended together with future ore mined when fed to the plant are assessed as an input to the gold production process to ensure the combined stockpiles are carried at the lower of cost and net realisable value.
Mining stockpiles which are not blended in production are assessed separately to ensure they are carried at the lower of cost and net realisable value, although no such stockpiles are currently held.
from page 196 here:
https://www.centamin.com/media/2384/centamin-plc-annual-report-2020-web-ready-secured.pdf
--------------------------------->>>
other grade related details include:
- a cut-off grade of .3 g/t is used for reporting the open pit mineral reserve estimate (whereas the underground reserve estimate cut-off grade is 1 g/t )
- open pit and stockpiles cut off grade for reporting is .4 g/t
- open pit mineral reserve estimate includes 7.5Mt at .4 g/t for .1Moz gold using a .2 g/t cut off for the dump leach
- underground cut-off grade for reporting is .4 g/t
Good point Rebess,
Centamin offers advice on this on their website.
Hi Candid, yes there was a time in past years when AISC was around $700, although the POG was lower, but a good comparison with the cost of buying/running a car, future residual value/depreciation etc,very relevant and all too often forgotten or ignored.
Ross Jerrard Centamin has explained the policy & importance of smoothing out capital costs over a period of time in several of the quarterly presentations over past year's.
Thank you for the confirmation and your explanation though, especially as it may help Sotolo refrain from publishing his slit your wrist/ jump over board analysis and help him realise that all is far from lost!
You can of course arrange for dividend to be paid as a 'Stock dividend' where shares are issued to the value. - Wise old bird that Sotolo is, I'm sure he knows this already. - I only mention it as it could be used as a counter argument.
Hi Sotolo,
Then put your case for compensation in writing to Barclays making clear your grievances and losses and make it clear that if they don't come up with a satisfactory solution/offer then you intend to refer the case to the FCA regulator.
Note Before you can open a case with the FCA you need Barclays final response in writing!
Whilst we are happy to help its no good just moaning about Barclay's on here if you want the situation to change.
Quite so Rebess!
I should have been more careful as I remember some time ago the same issue came up while we were all talking production figures.
Serves me right for just punching numbers into google search.
No Sotolo .. it doesn't work like that. .Capital expenditure, which includes exploration expenditure isn't treated as a cost in the same year as it is spent..it is gradually released into AISC over several.years , depending on how long the benefits of that expenditure accrue .
If the item of sustainable expenditure is just to put something right or enable production for that current year only, then ALL of it will be be part of AISC in that year .
The waste stripping programme has been deemed as non sustaining expenditure , because the work will provide a material benefit to the mine for several years to come.
It's just a way of smoothing out capital costs over their beneficial lives. If you didn't do that , and wrote all of it off against AISC in the year it was incurred , then you could have years where AISC was say $3000 per ounce , followed by several years of AISC being maybe $700 per ounce. .
Incidentally for Centamin there was other non -sustaining capital expenditure incurred on TSF2, camp upgrades and work commencing on the solar plant , which will likewise only be recognised gradually over several years to come.
Ho
The $240 million capital costs will be depreciated over a min of 10 years so only $24 would weigh against the 415k oz
Let's wait until Cowichan advises where he accessed the numbers so that we can understand ROM and stockpiles.
It is important to understand that in gold mining terms anything less than 0.5 grams per tonne is low grade. Without trolling through Centamin's presentations I don't know the cut off feed grade through the plant.
Normally low grade ore would either be stockpiled ready to blend with higher grade ores or placed on a leach pad that is treated with a weak cyanide solution that attacks the ore and over time leaches the gold.
Basically processing low grade ore below cut off grade through the plant isn't cost effective the processing cost plus cost of sale will likely provide a loss rather than a profit.
Candid the break even cost might be rather higher than you imagine. From the last report: “2021 gold production and cost guidance maintained: 400,000 to 430,000 oz at AISC of US$1,150- 1,250/oz sold… Unchanged 2021 capex guidance of US$225 million and exploration expenditure of US$17 million”. So if the extraordinary capex, a lot from the wall collapse, is not in aisc, the new total cost per ounce is $1150-1250 + $240m spread over 415k oz which is a stunning extra $578 an ounce taking costs to around $1800 an ounce, so I hope I have this completely wrong as would mean we are making a loss on every ounce now? Anyone?? On another note Tharisa that I couldn’t buy yesterday, as my dividend still hadn’t been paid by Barclays, is now up 20% since yesterday! Barclays has cost me even more than usual this year.