Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Hi Cowichan,
Social media can be unreliable and it attracts many posters who have ulterior motives or hidden agenda's ,so it's possibly why the company is reluctant to get drawn into discussions via Twitter or facebook which may lead to misunderstandings.
Yes I take your point ..I recognise that certain questions could damage legitimate areas of commercial sensitivity if they were answered , which none of us would want , but maybe they just like to hide behind this .
I read that as being $37 million spent on exploration but it doesn't say anything about what the reserves of that asset are. What have we got to physically sell?
I don't have a twitter account, but when a company starts getting shirty with someone who has repeatedly asked a perfectly reasonable question, I start thinking there may be something sinister going on - although I'm not suggesting there is. The only way a company can redeem itself from the situation is to be honest and answer the question. Otherwise, it will continue to be held in a dim light.
They are looking for a buyer because the $37 million investment doesn't pass their internal hurdle rate of return .
My problem with it though , was that it was announced as if it was a success, on their 27th May regulatory notice because of its potential , but in the next paragraph it was disclosed that it hadn't met the investment criteria , or put another way ..it wasn't a success. They are hoping to be able to dispose of it for at least the amount they have spent on it which is $37 million . If they can't , then there could be up to $37 million of expenditure which would have to be aborted but that would be the worst case and an unlikely scenario. It is quite possible that some of it might have to be written off though
Cowichan .. I think you can pick up this information in the interim accounts .
The Consolidated statement of Financial position as at 30th June, shows that at the moment there is cumulative exploration and evaluation expenditure incurred Of $76.2million. .. this is held as an asset because it is deemed to be likely to result in additional gold reserves being discovered in the future, resulting from this expenditure .
The amount of this expenditure pertaining to the Burkina Faso project, which is being held for sale is $37 million ..this is shown as a current asset and represents how much has been spent and will (hopefully) be recoverable from its disposal .
You can see a more detailed breakdown in section 2.8 of the notes
Hope this helps .
At Centamin, we have a zero tolerance for disrespect. We would like to ask that you respect that and delete this post.
As you know, we have reached out on numerous occasions to address your queries. If you have any questions, please email us at investor@centaminplc.com
------------------>>
My Reply:
Thank you FiFiz - the disrespect is with Centamin's management for refusing to answer a very simple question that ALL shareholders deserve to have answered - we've asked the same question for YEARS - what IS there to hide?
@TheFCA
@OSC_News
@BlackRock_UK
@vaneck_au
@Schroders_UK
------------------------->>>
The thing is Centamin has reached out on several occasions - with a reply that doesn't answer the question! So what's the sense of them advising me to send my question to an email address YET AGAIN? Total BS. Just address the issue - answer the question and stop pretending that some great offense has been made in a Twitter post that is obviously (and purposefully) cheeky.
I did get one anonymous supporter chime in (and I wish I could personally thank him/her for that support!)
------------------>>>
Don Lawson has tried on numerous occasions to obtain information on the Burkino Faso assets especially as it appears they are to be sold off. - Just provide the information Centamin without making such a fuss. - What's up? - Are you trying to hide something?
https://twitter.com/FiFiz26537743/status/1439962143915393024
Sorry it does say reply to Don.
Cmon could of been one of many.
Cowichan you're in trouble!!
https://twitter.com/CentaminPlc/status/1439904328735674369?s=19
Hi Candid
Agree - no credits awarded yet for MH so hoping he can earn them. - You don't get medals for talking or saying, you get them for doing and showing - . I know Tibbs has a lot of faith in him and for me that is encouraging. - Truth quarter, Q3, may provide a clue as to how we proceed from here.
Id break Boris's nose given the slightest opportunity for what he has done to this country. Sorry, dont want to be political, just my humble opinion
GP holding quite well given the market if off 600 points in the US, even the emperors new clothes - 'the new gold' and soon to be reserve currency of the world is down $4100... We've fallen so much lately nice to see some resilience.
I totally agree Mr T The market is very unforgiving about under delivering against previous targets , especially where they think there has been dishonesty or incompetence involved.
Everything that I have read about the new CEO although admittedly little suggests that he brings with him a good reputation and also lots of goodwill.
I don't think the market has given him credit for that yet, but hopefully in time it will
Hi Candid,
I'm not disputing the valuations of other companies or your statement that Centamin seems undervalued.
The reason for this is loss of market confidence due to senior management being less than honest in the past about operations at Sukari.
The new CEO Martin Horgan sees restoration of market confidence as a priority!
Worldwide Green Energy developments
The world’s first and largest climate-positive direct air capture and storage plant, making direct air capture and storage a reality.
The launch of Orca was not only a monumental moment for Climeworks but the direct air capture industry as a whole.https://climeworks.com/orca
https://www.en-former.com/en/these-technologies-will-shape-the-energy-transition/?etcc_med=SEA&etcc_par=Google&etcc_cmp=KRenewableinnovations&etcc_grp=126401432773&etcc_bky=green%20energy%20technology&etcc_mty=b&etcc_plc=&etcc_ctv=543238160867&etcc_bde=c&etcc_var=EAIaIQobChMIttmptqON8wIVpWLmCh1MCQvXEAMYAiAAEgL5PPD_BwE&gclid=EAIaIQobChMIttmptqON8wIVpWLmCh1MCQvXEAMYAiAAEgL5PPD_BwE
https://renewable-world.org/category/stories-of-change/
https://un****theworld.net/videos/
https://www.un.org/en/chronicle/article/icelands-sustainable-energy-story-model-world
The creation of a new new jobs in a whole new UK industry producing equipment to generate green energy was in the last two Labour party manifesto's.
Hi Mr Gnome,
Boris has always lied throughout his journalist and political carriers and he gets away with it because the general public are fooled by his act of being the cuddly bumbling fool who says what he thinks.
Unfortunately this spoilt child of a man who lies like a toddler and has only the vaguest of political convictions is now prime minister, a result of a political drama launched by Johnson’s fellow old Etonian David Cameron when he chose to organise a referendum on British membership of the EU
Ultimately Johnson is the epitome of the British ruling class, who in their quest for power are happy to gamble cynically with the future of their country and the livelihoods of their fellow citizens.
Boris was for a long time against the idea of the UK leaving the EU, although the pragmatic buffoon has now shown he is capable of taking Britain over the cliff into the abyss, which would be totally at odds with the statesmanship of his political idol, Winston Churchill, but Boris Johnson might think that amusing!
Major stock indexes in Europe traded in red premarket on Monday with today's revamp of Germany's DAX in focus. Over the weekend, Lufthansa AG reported it has approved a capital increase of €2.1 billion.
The FTSE 100 dropped 0.65% below the flatline at 7:36 am CET, while the DAX and the CAC 40 both lost 0.84% at the same time.
The euro was flat against the greenback at 7:37 am CET, changing hands for 1.17170. The pound decreased 0.20% concurrently to sell for 1.37100 dollars.
Breaking the News / MD
Gnome, they’re very informative posts especially the comparison of the miners premiums.
I’m heavily into CEY at the moment and am very confident that in a few years time all the mishaps will be behind us.
I have been reading this board for years and we’re lucky to have some very well versed people that know their stuff on mining.
Keep up the good work.
Where’s DASUT not seen him post for a while.?
There is a case in point unwinding in Australia , where an old mine, valued at A$290m, is coming to life again with new owners, new insights of geology etc in a company called 29Metals which now enjoys a Market Cap of A$1.14billion
When EMR (buyers, who then vended it into 29Metals) secured this asset some four years ago it had a mine life of only 3 years, it only had about 3 million tonnes in reserves.
Today it’s got a 10 year mine life, it’s got 13Mt in reserves, it’s got a copper equivalent grade of over 4% because we produce copper, zinc, lead, gold and silver there, and a copper grade of over 4% is just outstanding.
With these systems and it’s a VMS system, they just keep on giving. Golden Grove has been going for over 30 years and whilst we’ve got a 10 year mine life now it’s almost certainly going to go for a lot longer than that.
Peter Albert filled a gap for investors earlier this year when he led a collection of privately held copper assets onto the ASX under the banner of 29Metals, and, based on drilling results from last week, the company is fast filling another important gap.
The 29Metals team drilled six holes into a section of earth positioned between three pods of known resource at the company’s flagship Golden Grove mine in Western Australia.
While it is early days, the mineralisation found in those “Cervantes” holes has raised hopes that the geological system at Golden Grove is larger, richer and more connected than was previously understood.
So who got the value right? Who got the value wrong?
The value of CEY, which is producing, profitably, which has money in the bank, and will expand its ore reserves and ore resources ... etc .... is very undervalued, but do your own calculations and research
best
the Gnome
A measure which I like to use to decide whether or not I feel the market is under or overvaluing the share is to identify what premium, in terms of share price, is the market putting on the net book value of the company's assets .
The results were striking.
I looked at the 3 big players , Glencore, BHP and Rio Tinto, one medium sized which was Polymetal and 3 smaller companies of Centamin , Ferrexpo and Hoschild.
These are the results of the premiums that the market is making of the net assets of these companies .
1. BHP....137 %
2. Rio Tinto ..107 %
3. Glencore...74 %
4. Polymetal ...331 yes 331%
5. Ferrexpo ...73 %
6. Hoschild ..27 %
7. Centamin ?????
The premium that the market is paying on Centamins net assets is just 8 %. That is a staggering statistic demonstrating just how unloved Centamin is ...and I thought I had no friends. ..just think about poor Centamin !
Joking apart ..that is why I have invested in them .
At the current market price a billionaire could buy the company , and then find £215 million of cash in the bank !! Yes I think it's a bargain whichever way you look at it
This is NOT investment advice DYOR there are lots of other methods being used as you can see from other postings
A key warning to be aware of though is that I am assuming all other things are remaining equal. We only know what the company has told us. . . What worries me on that score , and I am a worrier where my wealth is concerned, is that so far we have only had one piece of bad news which was regarding the reduced production levels , the adage goes that bad news comes in threes , so if that is true , what is next ? A collapsing gold price perhaps .. I try not to think about that.
Sorry I didn't finish my post it got cut off :
3. Enterprise Value = Market Value plus overdrafts or in Centamins case minus cash = £1.04bn - £215m in cash = £825 million (£0.72 per share )
Of course in reality a company is only worth what somebody will pay for it and the last time that this was tested was with Endeavour Mining bid of $1.9bn or £1.4bn or £1 .25 per share in Dec 2019, which was a 13% premium on the previous day's share price ..
Endeavour withdrew their bid because of amongst other things a 'lack of information' from the company surrounding the medium term outlook for the company .
The practical and relevant question to ask now though is where does the current share price of 90 pence stand in terms of fair value. .
Again lots of different ways of assessing this , the most credible ones being those acknowledging the cyclical nature of mining earnings .
I like to see if the share is under or over valued using Schillings Cape formula which is to calculate PE ratio using the 5 or ideally 10 year rolling average EPS and marching it against the current share price
Using this formula, Centamin has a PE ratio of about 11..which is low .. in fact the PE ratio of Centamin for the past 5 years has ranged from 9 to 25 with an average of 18.
Likewise EPS has been in the range of 6 and 19 cents ( 4 to 14 pence with an average of 8 pence ..
So if you multiply the average 8 pence per share by the average PE ratio of 18 you get approx £1.45.
What this means is that based on the previous 5 years results £1.45 would be an equilibrium price to pay for the share That doesn't mean it's worth that now , but with an estimated EPS of 10 cents this year (7.25 pence) you might expect a share price of around £1.30, hence me waiting for around £1.35 to exit
The question remains why is the share price so low then and I can't come up with any better explanation than the reluctance of the market to forgive the company for the disappointment of the reduced levels of production
I will write another post highlighting another metric which suggests the level to which the current share price is undervalued ..
I am not sure where Boris gets his credibility from, which I presume is what attracts voters to vote for him. Comes across
as complete buffoon.
buffoon /b?'fu?n/
noun
"a ridiculous but amusing person; a clown."
whereas git, is a bit soft..
"an unpleasant or contemptible person."
although would undoubtedly have strong odours of a git ..perhaps he is a buffit, or a giffoon
Our buffoons down under are arguing amongst themselves as to who we should buy 8 submarines from, to make us self sufficent in defending 25,000 kilomers of coast line LOL. [About one sub every 3,000+ kms] IN so doing they have caused high anxiety amongst most of our Asian neighbours, again angered our chief trading partner (China), insulted the French who have in turn spat the dummy and pulled their well padded amabassador back to the Sienne, and incurred another mountain range of debt for the next generations.
The good news down here is that Sydney has won the gold medal for the most locked down city, heading for 260 days of lockdown [not sure why they dont go for the full year?]
Last week, Treasurer Josh Frydenberg agreed it might be a good idea to conduct a review of the Reserve Bank, given it had consistently failed to meet its key inflation and wages targets for the past five years, although he admitted it had performed "very well through this crisis"...by piling up debt and facilitating future tax for the next few generations to the max...but thats what the central banks do, after all its other peoples money.
Must keep a sense of humour, the alternative hurts too much
have a great week, and may the those in power be kind to the underlings
the gnome
During my long career I came across numerous different ways of valuing a company. The main ones , and the corresponding value for Centamin were
1. Net asset value on Balance sheet ..i.e. it's book value , which for Centamin would be £965m (£0.85 per share )
2. It's Market Value ..which for Centamin is £1.04bn or £0.9 per share
If some here got the impression I was talking about green initiatives like environmental footprint stuff I wasn't - I was referring to enterprise value (market cap). But I do like the conversations that have ensued.
Reading the debates I think both sides have valid points to make.
Based on my experience in Canada I don't think anyone argues for a world content with choking itself to death on fossil fuel emissions. But too often the media ignores (and sometimes demonizes) the companies that supply the energy needs of today.
As I watched that BBC video of the endurance swimmer navigating the Greenland iceberg laden waterways to raise awareness of climate change I couldn't help but think - he most likely flew on a jet to get there - not to mention the petrol powered dingy that shuttled him around for the video shoot. The list goes on and on.
Point is in our quest to free the planet of emissions we must do so in a way that acknowledges our individual contributions to emissions. The oil companies would not have any customers to burn their products unless we the consumer kept up the healthy demand by our lifestyle choices.
But getting back to Centamin I am proud of their efforts to replace diesel use with solar. However it did take much too long (four years now going on five) to implement.
Therefore I'd be very impressed if our new CEO would show real leadership and commitment to ESG by outlining a SOLAR EXPANSION plan today - instead of waiting another four years to replace the remaining diesel generators in use.
And this git told us our gas bills would be reduced if we voted for Brexit.
https://www.thesun.co.uk/news/1218703/boris-promises-cheaper-household-gas-bills-if-brits-back-brexit/