The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen 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.
candidinvestor I don't think anyone suggested buying AMS far from it what we are talking about is using their expertise as a Mining Contractor and getting them to buy and operate a mining fleet.
I agree with you, and I am sure that Sawiris is behind the collabs price of CEY while Centamin shows success regardless of the degraded open bit production.
I think if I am not wrong he is the one or his mafia guys who kill the higher closing price daily.
GLTA,
Dansul
candidinvestor I look forward to part 2 of your post. Another interesting organisation in the Perenti Group over and above Ausdrill, AMS is Barminco and they are the underground contractor at Sukari.
I don't think it was said that Capital don't operate in West Africa because they are very active in West Africa and other countries in Africa but they don't operate as a mining contractor and don't as far as I am aware own a fleet of mining machines.
For a mining company to rely on a contractor to deliver in accordance with the mine plan there needs to be a great deal of trust which can only come with a strongly competitive bid underpinned by a track record.
Capital could well gain the track record from the project at Sukari albeit not currently a contract mining project.
There are however a number of mining contractors already well established in West Africa one being AMS.
I dealt with AMS, Ausdrill, WAMS (West African Mining Services), personnel originally employed by Henry Walker and Eltin before they merged and then merged with AMS. I will actually sing their praises BUT as I say they are only one contract mining company operating in West Africa and there are several that I would also sing their praise.
Not knocking Capital in anyway because Perenti started in exactly the same way with Ausdrill a drilling company in fact Ausdrill started with a Drill salesman who decided to buy a rig and go it alone in Kalgoorlie.
When he retired in 2018 he sold his shares and same year they had a pit wall collapse at the super pit in Kalgoorlie and Perenti hasn't recovered from the SP and balance sheet hit.
Thank you Mr B for your well thought through comments.
An important paragraph which got missed off was the fact that as aas mentioned in the article , Capital have a Business development strategy ..
I think that is lacking a little with Centamin
Note. These posts represent my personal views from information I have gleaned from statements which are in the public domain ..but as always DYOR ..
Why on earth would Centamin want Capitol and leave CEY short of funds financing it's own future prospects.
I remember being told many years ago, to stay in what you know, in CEY s case mining and prospecting.
This companies strength is through their strong policy of self financing ,no debt or hedging.
I am sure they will stick to that policy whether you like it or not.
Their major shareholders do not moan, so all is better especially now.
Growth though profitability and minimum risk.
I apologise but several of the paragraphs got jumbled up and important sentences were missed off but I am sure you get the gist of what I was saying
https://www.proactiveinvestors.co.uk/companies/news/961940/capital-ltd-portfolio-soars-in-value-as-aussie-investments-surge-ahead-961940.html
That is the link I mentioned . To continue Part 2
Perenti have debts of $500 million .. I think I saw a reference being made to a " stay in business" strategy buried somewhere in their 200.page annual report ..
Think of the Perth equivalent of Carillion
I wouldn't trust ANS/AUSDRILL/PERENTI to fulfill any longer term ontracts. If Centamin bought Capital, it wouldn't need to
Someone mentioned that if we did acquire Capital that it would go down like a "lead balloon " in the markets..well ultimately the market driver as always will be incremental earnings per share.
In the interims. Centamin net profit fell by 20% to $59 million ..by contrast Capitals net profit leaped 35% to a record $18.5 million , the equivalent of 1.6 cents a share, and on a future growth trajectory .if you double this up for the year , then Centamin have their funds for their exploration budget.
I remain of the view that Centamin are missing a trick here , but I recognise that other people on here see it differently
By all means , contradict what I have said and I might well change my mind ..but one sentence 'research free ' qualitive
Furthermore acquiring Capital would secure our supply chain at a lower cost , since any profits from any contracts would be held within .
The reason the Capital makes profits and Perenti group is their fleet of foot and their ability to carve out niche contracts.
An interesting aside is that the market value of the whole Perenti Group is only $500 million , but why would you want to buy them and inherit another $500million of debt , with no profits to pay it off .
Conversely Capitals market price of £150 million comes with a PE ratio of less than 6..that is extraordinarily low figure..
PART 1 of 2 Hi Mike. . Yes I agree, it was an excellent presentation that's for sure .
Me being a numbers man though, it didn't hit the mark in terms of what I was looking for .
I submitted just one question in the end , which was left out, in favour of questions the equivalent of what did you have for your breakfast or where are you going for your holidays . Yes , I know , they are tongue in cheek remarks .
The only question I wanted answering was to translate everything they said, in terms of hundreds of thousands of ounces of production per year, for years 4 to 10 of their current 10.year business plan , they have already told us, the first 3 years are same, same same .
Are years 4 to 10 the same same same too , because if they are, then we don't have a growth company ,what we have is a same same company , but for longer .
I have no doubt , they will say they can't see that far ahead , that isn't good enough , they should set targets. As a shareholder , I want to see what those targets are , but my question wasn't even raised.
You will recall my suggestion about acquiring Capital , this stemmed from Cowichans original post about forming some form of partnership with them; I thought that was an excellent suggestion...so I researched it further which was why I ventured beyond a partnership and into a potential strategic acquisition, subject to a proper and thorough strategic review and associated due diligence exercise .
Don't dismiss Capital as just a driller,. It isn't.. , 17% of its operating revenue currently comes from mining services , maintenance, and MSALABS. .the plan is to increase this share in the years ahead.
What nobody has mentioned Is that it is also an investor in other companies in the mining sector . One such investment is with a company called Predictive Discovery ..they announced a maiden resource for Bankan project yesterday of 3.5 million ounces of gold . Capital owns a 10% share in it .
They also own a 2% share of a company called Firefinch which recently set up a JV with a Chinese giant lithuanium company called Ganfeng for Goulanina project .. I will post a link for this at the end .
Somebody mentioned that Capital don't operate in West Africa , ..on the contrary , 38 % of net revenue comes from there .
Somebody else suggested that we should use them as an outsourced supplier , competing with AMS and Ausdrill ; well these companies are part of the same group which is the Perenti group which operate out of Perth. Don't be too quick to sound their praises..they spread their resources over 4 continents..which involves lots of fixed costs ..they have no alternative but to take on work with no profit in them .. From a vanity point of view they have world wide revenue of $2 billion , which is impressive, but when you conduct a sanity check , you realise they are not making a profit and havent done for 5 years. .so when you then do a reality check of what is in their bank account , you discover
Sawiris' connections with Endeavour and his/their desire to screw Centamin over needs no primer for LTH's but for the rest let me fill in the blanks.
Mr Koshman is the president and founder of Red Sea Resources - a Canadian based exploration company that was awarded several concessions in Egypt during the last bid round. Mr Koshman is ALSO the corporate development head & company director of Altair Resources - the company that just 'obtained' Centamin's relinquished Burkina Faso assets containing an estimated 1.3 million ounces of gold (remember those three unnamed arms-length Burkinabes who were paid off?)
I suspected Sawiris was somehow involved and this photo seems to confirm it.
https://www.linkedin.com/feed/update/urn:li:activity:6849749750917414912/
Not only is Mr Koshman visiting Sawiris on his home turf but they are both seen schmoozing with key management figures of Egypt's Gold Pyramid Group - yet another shadowy player in the Egyptian gold mining concession arena.
I tell ya - whenever Sawiris gets involved you can bet under-the-table dealings have been in play... the guy employs unscrupulous business figures to keep his own hands clean.
haha well said RazorE...
Sorry pc posted unfinished.
All’s well, the day will come if not soon then the divi will do in the interim.
This is profoundly safe.
If the backside was to fall out of the share price the company would get a bid.
(this will never happen,I’m just listing the scenarios.)
Alternatively the company will provide progress to mend and the price of gold will go up and the share price with it
Was hoping that support was at 95p, but doesn't seem the case at the moment -- let's see...
Thanks for passing on the link to the presentation.
Like the many it was a positive, well structured and highlights the new journey for CEY with possible continued progress. Great to hear your views Dasut and Cowichan further thoughts.
I think if I new now what I know about the shenanigans, mismanagement probable corporate fraud a few years back would have sold out. It is concerning that the board either did not have a handle on it, or was involved with senior staff . This relates to Pardy, former senior staff and mines being sold or data being used and never mind the merger.
I would think EMRA would have new confidence and understanding that CEY is on the right track with solid foundations and the legal relationship would make it a bit messy for any suitors mmm. Here's hoping for further good news 2022 and a decent SP rise.
As Martin Horgan has stated cey has now the right people in place accross a number of key departments . Great to see online presentation with MH, greater impact than just a statement.
Bests to all
Yeah, I held and bought 50% more at the current level. I thought the presentation was good too
Hmmmm am just holding, a mate was making a small amount the other day between ~90 and 93, now regrets selling... who knows... but the presentation was good the other day in my view, along with all the other reasons for holding I and many others have listed this year, plus the recent price action...
lol yep, here we go again...
Thinking about selling some and buying back a % lower like earlier???
Back to 96 again let's see what happens... yes, I'm bored today as didn't golf due to rain!
Yep, and need a gold run.
Each day, for the vast majority of the time, the Far East and Asia indices follow the USA, and so does Europe. There are, of course, exceptional issues/incidents which change this- eg recently in China, battering their indices.
S+P and DJ down ~.4% as I type, and VIX up- but hopefully, USA will become more stable- yesterday was month end but a lot of commentary out form the twosome of Powell and Yellen and co.
yeah, just looking at the UK100 index, there had been a run up to 11:03, then a quick drop in 2 minutes.
We're now pretty much on a UK100 index bounce line so hopefully there will be a general rise next week in the UK markets
Yep- me too Mando_. I've heard about SETS locks.
But as I said earlier- didn't see any large sells at the time nor anything untoward.
Running abut 2.5 times as many buys as sells a the mo.
FRES up a little, HOCHS down a little, SRB down a little etc, so here broadly in line.
POLY has been the laggard for a few weeks.
Quite So Paul,
Dasut certainly knows his stuff regarding best mining practice and also has the benefit of on the shop floor/or at the pit face experience at Sukari, I certainly set great store on Dasut's opinion on these matters.
Buys coming back in now. This is strange. I'm remaining positive though.
Forget POLY- all looked normal.
Price now back to around ~95.
I watched real-time trades around this time when the price seems stuck @96 and when it came of the narrow odd range, didn't see anything unusual.