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Thank you Alhamd for this information , interesting pieces on Egypt!
The intercepts are encouraging (thickness and grade) and the cross sections very interesting. This could open at depth, and not too deep at that
the gnome
Give things a week or two. We shall soon see how many idiots get pulled into newly approved crypto ETFs and a week later wish they never got into it as they get totally fleeced. Like an IPO that everybody rushes into and then a week later it is half the launch price.
As a LTH for over 10 yrs I am confident.
The future is looking very good.
The SP is as it is due to the present economic climate, but still undervalued.
It is a traders paradise.
But in time the SP will see its true value as a long term investment.
GLA all LT investors.
For you , who invest in Egypt
the ancestors are preparing a feast , take hold arms both
.. 27 percentage banking interest $ interest $
borrow and make it , $$$
future prosper all who love creator of men
praise to allah $$$
https://enterprise.news/news/edition?id=b7a753d4-a81d-4db4-89b7-0d740a85d0de
Not frustrating at all for traders Mr Tibbles- what a weird statement.
Economics for trading, have you not understood anything?
It must be frustrating for holders, as no scheduled info out until 18Jan.
You've got this the wrong way round!
Hi Dasut,
Yes you are right, you have reminded me, it was Dave and he was in an exploration area where he reported that the Eygptian army had just kicked off a group of well equipped Sudanese artisanal miners who were using a JCB excavator to dig out really high grade ore which they were loading into several Toyota pick up trucks to move over the border.
Unfortunately someone dobbed Dave in to Capital and after that his information flow ceased.
i think I may still have some of his messages though so I will see if I can check which area he was referring to, although from what he said at the time high grade ore was just under the surface. it did sound very promising indeed!
Tibbs
Steve,
Must be so frustrating for traders, if only they could find out more at this stage so they could place their stops or stand chance of making a huge profit , but there you go, quite rightly that information (Data) on that boring stuff mining has to remain under wraps for a bit longer
Centamin is now in the closed period so insiders are prohibited from trading company shares or making any relevant information public (Such as to short term traders) before it is officially announced.
This period typically lasts for one month prior to quarterly or interim reports and two months prior to annual reports.
Tibbs, Cautious is the correct word because as I say very promising for a first pass albeit I am sure there was some previous knowledge coming from within. Hopefully "Little Sukari" grows to a larger Sukari.
I am sure you will remember back in the day we had a good deal of input from a "driller" who was waxing lyrical about an area that he was working. Was his name Dan? If so would be great to know the area that he was involved in.
Steve many thanks and good luck to you also. Thoroughly agree about inflation it is the bane of all long term investments thankfully my buy in price was extremely low and I haven't fortunately been overly tempted to increase my investment at the high price levels.
Agreed Paul!
Also grateful that Dasut has already had a look through and he seems to be cautiously optimistic on the information that's available, so that's reassuring!
Best
Tibbs
No worries Dasut- we have our own strategies which is fine and good luck to you.
If you look at the gold price in 2020 high in around July- 3.5years ago, it’s almost the same as it is today and yet inflation has gone bonkers since then- so this has been a primary issue- hence my posts for last few years have always banged on about inflation. If the price of what you sell doesn’t alter much but the costs of getting it do, that’s always gonna be a massive with all else being equal (whereas cey invested on several things during this time which made it even more twitchy - access to extra funds if required and gold price hedge were mitigations to these risks). This is a great trading stock for those who want to avoid the risk of simply holding and relying on dividends that can also drop or be stopped and then you could be left with a poor sp so poor capital- any strategy is ok with me- we have to pick the best ones that work for us, we can only blame or congratulate ourselves for our decisions. They all have risks and benefits.
Steve OK I understand the logic but glad that I have made decisions on what I think company strengths will contribute or otherwise in the longer term because I don't have the expertise to trade.
Not sure as I say my investment knowledge would work in the short term because based on actual results will be too late to get in or out especially with time differences world wide.
Example of this was when it was decided to issue a RNS saying they weren't going to meet production ounce target due to operational difficulties. No actual results but SP plummeted yet they made good dollar profits at the year end because they sold gold at a higher than predicted price.
Thanks Tony I have read through the RNS in more detail and there is some excellent information regarding the drill results and looks very promising because as I say "they have found gold".
Paulmetcalfe,
Interesting point but if the drills/ results are completed isn't the company obliged to release an RNS as it is market sensitive information ?
Hi Dasut,
No actual results in RNS.
This has happened many times before- actual results move SP.
Along with this economic data- I posted a link yesterday to key data out this week and the times the data will drop- the obvious one(s) in there(Thurs and Fri) will have the greatest chance for a move in gold, markets and hence CEY.
Outside of this, any RNS with actual meaningful results in it, and at a minimum, hitting the projected target in the RNS release on 18th Jan.
From what I have read today regarding the drilling results in the Eastern Desert and year end interview in Egypt I would say this together with a gold price that is holding it's own over $2,000 an ounce and China increasing it's gold reserves we have some positive data but SP is stagnant.
Pity we don't know how close together these drill samples are but certainly very promising first pass.
OK these are maiden drilling results but they have "found gold" and it is relatively close to their existing mine so Steve help me out here what data is holding us back?
Https://www.centamin.com/media/3007/cey-rns_edx-update_final_080124_website.pdf
Hopefully the above shows the drilling better. 2 interesting points the geology identifies gold in granodiorite layers only. Find that layer identifies where Nugrus gold is more likely and the length and grade was good.
Mt Tibbles,
Your lack of intellect is only superseded by your lack of IQ.
Again, yet another cut and paste, of old, old info, that most here (like me) will have already read, digested and taken a view on.
And yet again, you provide zero input other than cut and paste.
My view was so what... the rev is estimated, the 450k is planned so nothing outside of what is already known from other sources. Hence the SP failed 2 move a couple of weeks ago on any of this.
You really are a little wally- kind of funny though.
"tibbles" - meaning: "Tibbles are data frames that are lazy and surly: they do less (i.e. they don't change variable names or types, and don't do partial matching) and complain more (e.g. when a variable does not exist)"
Kind of apt!
Enjoy your day.
It will be interesting to hear what the mining experts on the board make of this.
Also I'm hoping for some more good news with the results next week and hope this isn't something to deflect that they will not be that good.
If they have at least met the lower end of guidance regarding Oz/s mined, then the recent higher gold prices should help a bit as well.
Encouraging RNS and news from Eygpt, although distribution does involve some cutting ,translating and pasting!
But that said it's all more informative than the same old diatribe of insults and boasting that you usually post!
Have lovely day's trading,, or take a break and go golfing!
Your old mate
Tibbs!
Page 6
The company aims to establish a mining school in the Marsa Alam region in cooperation with the Ministries of Petroleum and Mineral Resources, and Education, so that the school will be the first of its kind in Egypt in the field of mining, and students will be trained in the mine to qualify young people to work in the mining industry in Egypt. He said, "We are currently in the process of finalizing the procedures, and we aim to complete the construction of the school during 2024."
oil consumption
Oil Comsumption
Amr Hassouna revealed that the company obtains the diesel necessary for operational operations in the mine through the Egyptian General Petroleum Corporation, represented by Misr Petroleum Company, at the international price, as monthly quantities range between 12 and 14 million liters.
Hassouna continued that the value of annual diesel purchases amounts to about 145 million dollars, approximately 4.5 billion pounds, which is paid in full to the Egyptian Petroleum Authority, explaining that 20% of the total costs in the mine go to the diesel used to operate the equipment and generate electricity.
The Sukari gold mine, which employs approximately 2,000 employees, is one of the most important projects of the Centamin International Group, as it is classified among the list of the largest gold mines in the world during the current period.
http://tinyurl.com/9mbkuezh
End
Page 5
Expansion into foreign markets
He pointed out that Centamin will participate in the 2024 International Mining Conference in the Kingdom of Saudi Arabia, scheduled to be held next January, to explore the Saudi mining market and learn about the legislative frameworks and mining agreements, as well as suppliers and service providers in the Kingdom.
He pointed out the possibility of the company entering other markets in the future to explore for gold, whether in the Middle East or other countries, explaining that the company has reserves and resources in Côte d'Ivoire in the "Drobois" mine estimated at 2 million ounces, and the company is currently working on a feasibility study for the project.
Production costs
Amr Hassouna pointed out the increase in the prices of fuel and materials used in gold extraction operations, which caused the total cost of producing one ounce to reach 1,300 and 1,350 dollars.
Regarding the amount of benefit from the jumps in gold prices in the past period, Hassouna pointed out that on an annual basis, the market witnessed some increases, as the price of an ounce jumped to $2,000, which positively affects the size of Centamin’s revenues.
Regarding next year's price expectations, he said that it is not easy to predict gold price trends in light of the current global conditions that directly affect prices.
He confirmed that the company plans to reduce the cost of producing an ounce to less than $1,000 in the coming years through a package of new mechanisms that are primarily related to increasing production and reducing the cost of some of the elements involved in the gold industry inside the mine.
Regarding the company’s reliance on solar energy in the Sukari mine, Hassouna said that Centamin used local and foreign expertise represented by Giza Cables and Joy in implementing a solar power station currently operating at a capacity of 30 megawatts with investments of $36 million, which reduced 20% of the cost. The diesel used to generate electrical energy in the Sukari mine is equivalent to 20 million liters annually, with a value of approximately $18 million, as the company obtains a liter of diesel at international prices.
Hassouna pointed out that Centamin aims to conduct expansions on its own within the solar station and raise its production capacity to 50 megawatts, which is the mine’s total hourly electricity needs, so that the station covers the entire electricity consumption over 8 hours a day.
He pointed out that the company intends to implement a project to connect the Sukari mine station to the national electricity grid in the Marsa Alam region during 2024 with investments of $45 million, and once its operation phases are completed, it will save about $40 million annually in operating expenses at the mine.
Cont
Page 4
He pointed out that Centamin obtained 3 concession areas with an area of 3,000 km2 located in the Arabian Shield region. It was divided into 3 companies and began work on the first company, which is “Centamin Central Mining”, which undertakes work near the Sukari mine in the “Najrs” area. The entire area was surveyed over an area of 900 km, and 16 targets were identified for drilling, which were completed and rock samples were taken for analysis. It is expected that Its results will appear during January or February 2024, to determine the degree of concentration of gold ore in the region and plan a more focused drilling program based on these results, as about 10 million dollars were spent in the first two years on drilling and exploration programs in that region.
The second company is "Centamin South Mining", whose mission is to work in the Umm Al-Rous area north of Sukari, near Marsa Alam Airport, and has begun collecting samples to search for gold-bearing rocks. The third company is "Centamin North Mining", which is specialized in carrying out exploration, drilling and production work in South of Al-Qusayr, near Al-Fawakhir area, and we will start in this area during January 2024.
Cont
Page 3
Targeted increases in production
He pointed out that Centamin has adopted a strategy to produce gold from the Sukari mine within the next 11 years, according to the latest announced plan for the life of the mine. It basically aims to produce an average of 475 thousand ounces annually during the period from 2024 to 2034, interspersed with an increase in production in some periods to reach 500 thousand ounces, and it may decrease to the level of 450 thousand ounces according to the conditions and work environment in which we work.
He explained that the plan to increase production goes in parallel with the targeted expansions in the coming years in the mine, which has a proven gold reserve of 5.8 million ounces, and a resource reserve estimated at about 11 million ounces - which are unconfirmed quantities of gold, some of which are added to the proven reserve on a semi-annual basis.
He pointed to the company's success, through improved geological studies at the "Sukari" mine, in increasing reserves by 500,000 ounces compared to the reserve of 5.3 million ounces estimated in the mine's lifetime plan last October.
He stated that the total investment flows over the life of the Sukari mine have so far amounted to approximately $6 billion, including “investment and operational” expenditures that have enhanced the Sukari mine’s production in recent years and its possession of a reserve capable of supporting the Egyptian mining sector’s contribution to the state’s national product.
Arabian-Nubian Shield region
He pointed out that the Arabian Nubian Shield region is one of the most promising areas in the field of mining in Egypt, which is expected to receive great attention for gold exploration in light of the current legislative frameworks that have become an incentive for foreign investors after the amendments made in 2019 to the Mineral Resources Authority Law, which is based on Paying taxes, land rent, royalties, and a percentage of the profit to the state, and this is the system in effect in most countries of the world.
He said, "The new law amended the business model from sharing profits at a rate of 50% between the government and companies to royalties, taxes, rent, and a share of the profit."
He pointed out that Egypt possesses infrastructure, ports, road network, and security and political stability that will help the company expand in Egypt, as these components are among the most important elements of attracting foreign investments in the field of mining.
cont-
Page 2.
The CEO of Sukari Gold Mines and Centamin Egypt , Amr Hassouna, said that the revenues of the Sukari Gold Mine during 2023 are approximately $850 million, compared to about $788.4 million in 2022.
He added in an interview with Al Arabiya Business that the exploratory studies conducted by the company raised the proven reserves in the Sukari mine by 500,000 ounces, rising from 5.3 million ounces last October to 5.8 million ounces, bringing the group’s total reserves to 7.7 million ounces.
He said that the company's investments in the Sukari mine during the current year amounted to $600 million, and he expected that investment rates in the mine next year would continue at current year's levels, in addition to investments expected to be pumped into other new areas in the Eastern Desert, ranging between $10 and $15 million.
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Hassouna confirmed that gold production from the Sukari mine rose to 450,000 “planned” ounces by the end of 2023, compared to 440,000 ounces last year, explaining that the company operates in a dynamic environment with regard to the annual production capacity of the mine, which may rise or fall from year to year
Participation in auctions
Regarding Centamin’s participation in the upcoming gold exploration auctions in Egypt, Hassouna said that the company does not mind expanding and owning new concessions to work in, whether by participating in the upcoming gold exploration auctions or through exploration within the current concession areas.
He added: "We will certainly study all the bids that will be offered by the Egyptian Mineral Resources Authority, and all options remain available to us, as we had the ability to work on more than one project and possess the financial cloak to cover those projects at one time."
The Egyptian Mineral Resources Authority and the Pharaonic Gold Mines Company - a subsidiary of the Australian company Centamin - signed an agreement in 1994. The commercial disclosure was announced, and a company was established to carry out operations under the name “Al-Sukari Gold Mines”, and production began in 2010 as a joint entity between “Centamin” And the body
cont-