Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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FTSE 100 Live: Sterling in focus as stagflation fears stalk UK market
Graeme Evans
Wed, 29 September 2021, 10:08 am
he stagflation fears behind sterling's worst session of the year and the prospect of higher interest rates in the US are likely to lead to another nervy session in London today.
Worries over whether the impact of the fuel crisis is contributing to an outlook of low growth and rising prices left the pound at its lowest point against the US dollar since January.
Corporate highlights of today's session include Next's latest upgrade to profit guidance after it sales performance in the past eight weeks materially exceeded its expectations.
FTSE 100 Live Wednesday
Stagflation risks pressure sterling
Next raises profits outlook
Morrisons auction date set
Sterling stuck at January low
10:08 , Graeme Evans
The stagflation worries blamed by some investors for sterling's worst performance of the year continued today as another surge in natural gas prices added to the jitters.
Fears over the toxic combination of inflation and a stagnating growth outlook have been fuelled by rising oil and gas prices and the possibility the Bank of England may be forced into an earlier than expected rise in interest rates.
Sterling remained at its lowest level since January today, having dropped from around $1.37 on Tuesday morning to $1.35, a level not seen since January 11.
End-of-quarter rebalancing is likely to be part of the reason for the weakness, but the situation comes with natural gas futures up another 5.5% at 218p a therm today and Brent crude close to the $80 a barrel threshold.
A sharp rise in US borrowing costs on expectations for tighter monetary policy also put upward pressure on the US dollar. Wall Street's S&P 500 was down 2% last night on big losses for stocks in high-growth sectors such as semiconductors, media and software.
There was a similar story in Europe, but the FTSE 100 index largely bucked the trend thanks to support from its dollar-earning stocks. The blue-chip index fell 0.5% last night but was up 63.63 points to 7,091.73 after Next's bullish interim results helped sentiment.
US-focused building supplies firm Ferguson posted the biggest rise, up 295p to 10,530p, while there was buying in mining after Anglo American and Glencore added more than 2%.
Royal Mail was the biggest faller after analysts at UBS scrapped their “buy” recommendation and downgraded their price target from 590p to 440p.
Their caution reflects the impact of increasing cost pressures at a time when the pricing power in the industry is likely to decline as more parcel sortation capacity is added in 2022.
Shares were above 600p in June but fell 5% or 26.4p to 452.8p after the downgrade.
https://www.lse.co.uk/ShareChat.asp?ShareTicker=CEY&share=Centamin-PLC&thread=94501523-2730-4AC5-8B10-41F10BC2610D&reply=true
Market22, We have been through this subject previously. Lets see now the Mine Geology Dept appears ot be properly recognised and resourced (finanially and people wise), just what happens to the gold reserves and gold resources. Ditto for the near Mine Exploration...How the past management could let it get to the state it was, is only testimony as to how far they were out of their depth....
best
the Gnome
Whilst the State of Victoria Safe work Department sues Victorian Health Depratment for $65m for not providing enough training on covid managemnt, the Victorian State settles closer to insolvency, at least that would be the case if they were a corporaton
Best and worst ON ASX, BEST WERE THE GOLD MINERS,
St Barbara UP 4.9%
Evolution Mining UP 3.1%
Silver Lake Resources UP 2.1%
Regis Resources UP 1.9%
Northern Star UP 1.9%
WORSE AGAIN?...STATE AND FEDERAL GOVERNMENTS
Still paying out $1b in covid assistance ot over 1.5 m Australians
but we are doing well!
There is a slight issue with credibility, in those that serve us
Could be a lesson in todays trading, hinting at how things will play out in the longer term ...
best
the Gnome
Hi Sotolo,
Are we not in a Bull market for PMs ? Your view does depend on what time frame you're looking at. I would concur that over the last 12 months the Gold market has been bearish. But over the last 5 years for example we had lows of approx $1041 and highs of $1391 ( pre June 2019 ) post September 2019 we had lows of $1444 and post May 20 we only saw lows of $1665.
The solar farm next year is likely to help with future cost reduction. A lot of diesel not being used.
Inflation is no longer transitory. Message is coming out from China.
Major stock exchanges in Europe were higher in premarket trade on Wednesday after suffering a selloff that was seemingly prompted by inflation fears in the United States and a steady increase in US Treasury bond yields. Meanwhile, the United Kingdom reportedly sought military assistance with the countrywide shortage of drivers that hurt the fuel delivery process in recent days and affected energy prices.
The DAX grew 0.40%, London's FTSE 100 increased by 0.15% and the CAC 40 gained 0.44% at 7:53 am CET.
The euro was flat compared to the dollar at 7:55 am CET, trading at 1.16850. The British pound advanced 0.08% against the American currency, going for 1.35494 concurrently.
Breaking the News / MS
Thanks for that Cowichan.
'look at Sukari — SO FAR we know the plan is to eventually mine a smaller Cleopatra pit along side (but still unattached) to the larger main pit'
Could you post a reference or link please, for more information on that, if you have one?
Best Regards
IE
Josef El-Raghy 18 years, Pardy 12 years both done very well. Walked at the top-- this loyal board of investors expect better, maybe another spike ( possible)will be good , but every year the mine life gets less with no news to wow investors. I said on my last post this is only a short term trading share and sadly i am right, I know some people think you are not what you are on this board, but ups and downs and with age and what goes with it don't change the real thing when ok
and I wont be surprised if there is not a (serious) upgrade for CEY in Resources
best
the Gnome
Thanks Cowichan,
but you put more flesh on the bone, so to speak.
A most remarkable upgrade, or just exactly how did this happen. Was there an issue in continual disclosure, or was the Mining Resource team undermanned or just incompetent? Funnier things have happened, but it is a most remarkable upgrade, in such a short time, JUST preceding a merger...one would think there are questions to be asked and answered...
regards
The Gnome
best
the Gnome
As we're about to hear from Centamin management again this week I thought we shareholders might as well think about the future of Sukari. To that end, today's merger announcement by Kirkland Lake and Agnico Eagle make a good starting point.
Background
Word is over the past two years Barrick, Newcrest, Newmont and Agnico Eagle all had conversations with Kirkland Lake regarding a tie-up
The most recent negotiations (it is said) involved a friendly Barrick deal which was to be announced at the Denver Gold Forum but it fell through because of a run up in the KL share price (something about loose lips and possible insider trading)
So on Sept 2, 2021 KL made a strategic announcement, declaring its Detour Lake open pit resource had nearly tripled to 14,718,000 ounces (as of June 30, 3021) — "an increase of 10,061,000 ounces from the previous estimate of 4,657,000 ounces at an average grade of 0.80 grams per tonne"
Keep in mind the last resource estimate was not very old - it was released December 31, 2020
I'll just say it's incredible that many ounces can be 'discovered' in 6 months.
Now have a look at the geographical layout of Detour Lake here:
https://twitter.com/DonLawson_/status/1442984041066549253
Not only has the resource been extended deeper (yellow outline) but the once untested divide called 'Saddle Zone' now joins the larger pit with the smaller.
Now look at Sukari — SO FAR we know the plan is to eventually mine a smaller Cleopatra pit along side (but still unattached) to the larger main pit. In terms of overall length and depth Detour & Sukari are very similar — even the bulk low grade ore values
Bottom Line:
The day is coming when ALL the extension and infill drilling at Sukari is compiled into a new resource estimate and the current pit outline is expanded. In fact management probably already have a good deal of that data just waiting to be shared.
Will Sukari triple its open pit resources like Detour?
Will the update come just prior to another unsolicited offer?
We'll need to trust our new management team to pick the best time for Sukari 2.0 's unveiling.
Goldgnome - oi mate, you stole my thunder!
Heads up, I'm going to basically repeat what you said in my next post re: getting the resource update out at the right moment - because it bears repeating.
As mentioned previously MandA is the way the Gold Industry growth pat, once they have done the brownfields exploration path.
The Hymn Book?
Step 1. Put out your resoure upgrades
Step 2. Announce a new discovery
That is prove there is plenty of ife in the old dog, get the SP up and away we go.
So Kirkland Lakes Open Pit upgrade was interesting in time and amount....
"Kirkland Lake Gold (TSX: KL; NYSE: KL; ASX: KLA) has released a mid-year updated resource estimate for its Detour Lake mine in Ontario, adding another 10.1 million oz. of contained gold. Measured and indicated resources are now 572 million tonnes grading 0.80 g/t gold, totalling 14.7 million contained ounces.
The inferred resource has grown, too. The estimate is now 1.1 million contained oz. in 48.3 million tonnes grading 0.81 g/t gold.
Resources were calculated using a 0.5-g/t gold cut-off grade. Provision was also made to stockpile low-grade material for future processing rather than treat it as waste.
The resource update used data from 365 holes or 185,000 metres of surface diamond drilling completed in the last 18 months. (Kirkland Lake bought out Detour Gold Mines in January 2020.) Another 100,000 metres are planned by the end of the year."
More to come I suspect
good luck shareholders
best
the Gnome
Sotolo tell me something I don't know.
Like where you buy your Crystal Balls.
Good night Sweet dreams.
Mr Bond, there were quite a few predictions that gold would fall, including from some members of this board and there still are. Many pundits, like Andrew Maguire talk gold up, but the truth is it is in a bear market and a tumbling stock market and recession may not immediately help. My view is that although it has lower to go if inflation takes hold, falling real rates will lift gold, but maybe the recession will turn out to be big enough to hit gold, who knows but for now if the trend is your friend it is on down as for the last year sadly. However hopefully cey will up ounces and lower costs lifting it from current low profits despite the gold fall. Just imho
A 'Merger Of Equals' ?
- @agnicoeagle loaded with debt
- @KirklandLakeGld debt free
- upon merger $858 million in cash from KL shareholders will transfer to AE shareholders
- given a ZERO PREMIUM this deal is NOT in the best interest of KL
- the only winner? New Star-Struck CEO Tony Makuch
https://twitter.com/DonLawson_/status/1442947185197260802
----------------------------->>>>
Not sure if any of Centamin's shareholders are invested in Kirkland Lake or Agnico Eagle but here's my take on the situation...
PS
I'll share more on how eerily similar KL's 'Detour Gold' open pit scenario is to Sukari's - I trust our 'reveal' the real resource moment will be very different when it arrives!
Yes Dasut Ams comes to mind as number 1.
Tibbs something we must also appreciate is that the current contract that Capital has at Sukari is just moving waste and this is way off being a contract miner and there are far more experienced contract miners currently operating in West Africa.
Austerity
During the period of austerity that followed the 2008 economic crash, the Department of Health and Social Care budget continued to grow but at a slower pace than in previous years. Budgets rose by 1.4 per cent each year on average (adjusting for inflation) in the 10 years between 2009/10 to 2018/19, compared to the 3.7 per cent average rises since the NHS was established.
https://www.kingsfund.org.uk/projects/nhs-in-a-nutshell/nhs-budget
https://www.theguardian.com/books/2016/dec/08/uk-library-budgets-fall-by-25m-in-a-year
https://fullfact.org/health/spending-english-nhs/
https://cpag.org.uk/sites/default/files/files/Austerity%20Generation%20FINAL.pdf
Quite agree Mr Gnome,
In the past all big companies handled their own transport and distribution, they had their own fleet and maintenance facilities, they hired and also trained their own drivers and there was a two way commitment between company and employee.
Then in the quest cut costs and increase profits companies sacked their own staff to use so called logistics specialists. usually shi(ts who just use agencies to supply their staff as and when!
Now the drivers have to pay for HGV training and are regarded he logistics companies as part of the truck rather than a person!
Exactly the same has happened with public transport all over the UK as a result of Nicolas Ridley's deregulation in the eighties under Thatcher which resulted in the asset stripping of municipal and publicly bus and rail companies and also because it was a way of getting at the unions and cutting staff pay and conditions of employment!
Most of this present chaos has been brought about by the free markets asset stripping policies of the Conservative party
Thatcher bribed voters with 40% discounts on buying council houses and sold the public services & utilities to the public who failed to understand they were buying what they already owned!
The answer is to renationalise all the power utilities,water companies public transport,start building local authority owned social housing and make the big tech,Facebook, Google and other international companies like Amazon, Starbucks, McDonalds, etc that are behaving like parasites start paying the right amount of tax, or kick them out!
The private sector and certainly the Tory government has now proven they not to be trusted or capable when it comes to providing essential and public services!
Agree, no chance- the whole point in them contracting them in the first place was to have a flexible contract company which is going very well.
Hi Dasut,
From a recent conversion I had with an exceptionally well informed person I would say there is as much chance of finding rocking horse poo as Centamin bidding for Capital!
There is no chance of any of the £300 million being spent on anything like this because as you rightly point out there is no need or any sound business reason to do so.
Hi Mr Bond,
Exactly that, its the opinion amongst wholesale traders that there is a type of unofficial amnesty until early next year for the Comex clearing bank's to cover their unallocated open paper positions for fear of the consequences to the sector and the markets of just pulling the rug out from under their feet!
There is still the div yield to.encourage buying at these prices. Some of the best in ftse