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Tornado, I think this year’s over £200m special capex to rectify the situation is not included in the aisc, so you can take that off the profit and same again next year, correct me if I am wrong, hence not much profit till 2023 and our sad share price especially since that £200m now weighted to second half.
Hi, I'm new to this share so I'm just happily buying a position, seems like a bargain to me!
For those who remember June 2019. End of Q2 average sale price for the quarter on gold is $1307 and the AISC is $925 on 117,000 ounces produced. A better second half was to look forward to but they had $236M in the bank. The recent report $1822 gold sold on 97,000 ounces at $1290 costs with say $312M if memory is correct in the bank. $44.69M above AISC in 2019 versus $51.6M. $76M more in the bank is worth 6p on the share price. The big difference is reserves and resources. Once those figures come through on the update in H2 and go the way management expects then Centamin corrects higher.
It's looking like penny-share status (under £1.00) is about to return. -Ftse 250 status still ok. - Hard to believe isn't it? - For all the money in the bank with no debt, unhedged etc. plus paying a decent dividend, nobody wants it. - How is it possible? - Ask the directors who made it so.
As far as I remember there are 2 SAG mills and 4 or possibly 5 ball mills.
A crusher may be a contra rotating with two separate drums of teeth or a jaw crusher to crack any material smaller before it enters the mills .They must have more than one certainly because they take heavy punishment with especially quartzes or granite .
Hi Mr Bond,
You may well recall they bough an extra crusher in the past, are you taking this one into account ?
or is this a the dip...
New rating announced...
Hi Mr Bond, yes you are right of course about the American way, (screwing the UK just as they have always done at every opportunity since the first colonies when they wanted the UK to provide them military but didn't want to pay any taxes to pay for the cost, it continued on from there to the present day!)
Yes , Haliburton , up to their necks in just about anything bad that the US foreign policy and
military have been involved in!
Although to be honest BP due to cost cutting were lax in their monitoring of the contractor!
The GAO found that the offshore oil and gas industry has left behind about 18,000 miles of inactive pipeline in the Gulf since the 1960s. While federal rules require removal of decommissioned pipelines except in special cases, the GAO found that 97% of pipelines have been allowed to stay on the seafloor.
“Such a high rate of approval indicates that this is not an exception ... but rather that decommissioning-in-place has been the norm for decades,” the report said.
It’s unclear how many of these disused pipelines still contain oil or gas. The BSEE does nothing to ensure cleaning and decommissioning standards are met, and conducts no inspections once pipelines are abandoned. If pipelines are later found to pose environmental hazards, there’s no funding dedicated for removal, the GAO report said.
Environmental groups praised the report.
"The oil industry needs to clean up its messes in the Gulf of Mexico and stop making new ones," said Miyoko Saka****a, oceans program director for the Center for Biological Diversity. "This report shows how corporations profit from polluting our water and air, leaving the rest of us to pay the price."
https://www.nola.com/news/business/article_5b1a1e00-a129-11eb-8674-ef37cc4fd078.html
Point taken. I wanted to balance up the euphoria with possibly the reason the sp didn't get higher?
Oh and FTSE(~+7%)
Selected PM performance YTD - AYM(~-52%), FRES(~-39%), SRB(~-37%), HOCHS(~-32%)m CEY(~-23%), POLY(~-17%). Gold YTD (~5%), SILVER(~-4%). Selected indices DJ(~+15%), S+P(~18%), NAS(~+16%), HSeng(~-1%), NIKK(~+1%)
From Alliance News today: BERENBERG RAISES CENTAMIN PRICE TARGET TO 138 (137) PENCE - 'BUY'
'That barbarous relic' was a quote from Keynes where he was talking about the gold standard. It doesn't refer to gold as a commodity, in the way it is regarded today.
Like everything else, there is good and bad in every exchange rate mechanism. In the 1930s, the effect of being on the gold standard created terrible hardship, particularly for the USAs poor. We will see in a few years time in the West, whether coming off the gold standard in 1971 was such a good idea afterall.
Exciting in a boring way. Halfpenny, i didn't think it was appropriate to compare year on year, as we hit the problem with the Mine wall in October which effectively reset the mining schedule going forward. Likewise, that has reset the share price to its new levels. I did a Q2 to Q1 comparison, which is very good when you read between the lines and understand the numbers (see my posting at 10:34 yesterday why i think this result should be great).
Equities in Europe traded higher in the premarket on Friday ahead of several data reports that are to be released during the day. The United Kingdom will reveal its latest performance in retail sales and manufacturing in services. The Eurozone and Germany will unveil their freshest results in the latter category.
Earlier, Britain observed the highest rise in consumer confidence since the start of the COVID-19 pandemic in early 2020.
The DAX traded 0.20% higher at 8:00 am CET. At the same time, the FTSE 100 increased by 0.18%, and the CAC 40 gained 0.17%. Both the euro and the pound sterling lost 0.06% to the dollar, selling for $1.17642 and $1.37607, respectively, at 7:59 am CET.
Breaking the News / JR
Happy Friday y’al
We seem to have survived the Q2 update relatively unscathed.
Onward to August 5th and the H1 interims
Gold production in the quarter to June 30 of 100,228 ounces, slipping 4.0% from 104,047 ounces in the first quarter. On a yearly basis, gold production in the first quarter fell 23% from 130,994 ounces.
Cash costs came in at USD883 per ounce produced, up 41% year-on-year from USD625 and rising 20% from USD733 in the first quarter.
Revenue fell to USD177.5 million from USD189.9 million in the first quarter, and sunk 22% year-on-year from USD226.6 million.
So no not such great reading. But digging itself out of a hole at Sukari so to speak. If ever there was a time for pog to climb back over 1900 it would be helpful if it comes soon.
Excellent well reasoned comments in this thread. Thank you to both Sotolo and El Prof.
I would like to add we have some forthcoming positives in the pipeline being:
Sukari reserves and life of mine
Offloading of West African assets
The new licence areas
However if these will actually have a positive impact on the share price or just help prop up the existing SP I really don't know.
Martin Horgan explained that new developments would not be a drag on future dividends so seemingly movement in gold price will be the significant driver for CEY SP in the forthcoming period.
You two make me smile.
Sotolo,
Yes I remember their commitment to this year's dividend - it is next year's I worry about. My hope is that 2023 revenue is good enough to pay and current levels without it being uncovered and that they decide to take the hit and pay next year's from reserves too. I would rather we avoid any excuse for Mr Market to smash us (again).
Best wishes,
Prof
Prof, in the March results they promised a minimum divi this year down 40% which I think they are likely to stick to: “The Board has proposed a final dividend for 2020 of 3 US cents per share, equating to US$34.7…The Board reiterates its intention to recommend a minimum 2021 dividend of US$105 million (interim and final)”, ie 9 cents to come. We have had a very variable divide 2015 3c, 2016 15.5c, 2017 12.5c, 2018 5.5c, 2019 4c, 2020 15c. So as said this year we already know will be 9c (generous as partly paid out of cash reserves as bot fully covered so as said down only 40%), more than many years. Next year should be down further, unless paid again mainly from reserves before hopefully a recovery in 2023. Like being a dissenter tho not sure I pray enough
Hi Sotolo,
Yes I loved every word of his post but particular that 'dissenters are welcome' (hello Sotolo) and that gold has to stay high for long enough for CEY to get its costs under control.
Thought about buying some more THS today but actually bought more CEY. Can't help but think, provided gold doesn't do anything silly, that CEY is going to rise and rise from here as Horgan delivers and the market regains faith. My biggest fear for CEY, other than the price of gold falling, is that in the H1 update, they announce a reduced dividend and that all the investors who here for the juicy yield, decided to exist hence driving the price down.
My biggest fear for my heavy miner centric portfolio (CEY, FRES, JLP, RMM, THS, SLP) is that the overall market that I consider to be stupidly valued, crashes and drags them down too.
Tomorrow is another day (GWTW) !
Best wishes,
Prof
Let’s see if we have any new broker estimates after the analyst’s have had chance to digest the update. F
Lukee the SAG MILL of which their are two needed the teeth that rotate the large drum repairing.
The SAG mill is primary crusher before entering the Ball Mills which crush it to a finer recoverable dust for separation of gold from the material.
In Cornwall in history the crushing was done by women with hammers called Bal Maidens.
So yes there may be an improvement in production, as the Ball Mills (Fine crushing) were refurbished last year.
A horrible hard life, nothing glamourous there, poor souls.
Prof wasn't Adamsmith's post great. I nearly sold some more Cey on the results and bought more THS, (now have same of each), wish I had as THS is way undervalued on a PE of around 3, while Cey will I guess be around 30 this year, I might tomorrow even though THS up and Cey down, as from what Horgan said about delayed Capex next half will be worse and it is painful hanging on till (if) it gets better, and as AdamSmith points out our recovery depends on getting costs back down and gold recovering. And how about you...