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Mon 07/09/2015 11:26
From Buchanan PR
One of the analysts in London has picked up on the development in Cairo – GMP Securities issued the following this morning:
Centamin – CEY LN – thorn removed with arrest of main opponent to Sukari
• As operations continue their smooth progress and the company moves towards 500k oz for 2015, enabling the company to recently raise its dividend to a healthy ~3.7%, the story looks in good health.
• But one issue which has continued to hold back the company over recent years has been the blight of the court cases it has faced in Egypt, spear-headed by one particular individual (Hamdy Fakharany). So it is especially comforting to see management’s long-stated view (that this individual was only out for personal gain and they would not bow to his demands) corroborated by the fact that he has been arrested after being caught attempting to bribe a company facing a similar legal situation to CEY.
• He had sought payment from CEY in order for their court troubles to “disappear” which the company had consistently ignored – and that tactic looks like it will now pay off. Clearly it won’t be overnight progress, but as we have long-stated, the court cases facing the company have not been brought by the State, but rather an individual with an agenda. Now that this individual is likely removed, the company is in a solid position to continue unimpeded its strong operational progress.
• Remains my top pick of the growing, established lower cost producers and with a healthy dividend yield on top, it screens extremely well versus all peers.
Agreed Rebess, although likely its dragged on for so long the vast majority will hve either forgotten about it or never known about it!
Just to remind everyone-
Centamin Court Case Share Price Discount
24 April 2014, 10:33
https://www.sharesmagazine.co.uk/news/shares/centamin-eyes-end-of-legal-pains
Gold producer Centamin (CEY) implies a new law in Egypt could result in the dismissal of a legal case questioning its right to operate the Sukari gold mine. Investors understandably like the news, sending the share price up 9.3% to 61.17p. It is very encouraging but this remains a risky stock as the legal matter is not yet concluded and political instability is still a problem.
Centamin has been fighting a court case since October 2012 brought by Hamdy El Fakharany, a lawyer and former Member of Parliament who has had previous success with similar asset ownership challenges in the property space. He has challenged the Egyptian government over the way in which the original licences were awarded for Sukari. This Q&A from Centamin provides further details on the court case.
Today's announcement highlights a new investment law which restricts third parties from challenging contractual agreements between the Egyptian government and investors. The new law appears to apply to both new and respective legal cases. Effectively that should free Centamin of the legal battles that have weighed heavily on its market valuation.
While the signs look good for Centamin, hence the big share price movement today, the matter has not officially been concluded. Nonetheless, analysts remain optimistic.
Stockbroker Numis says: 'While by no means certain this could well squash the legal case and remove the stone around Centamin's neck.' Goldman Sachs comments: 'The overhang on Centamin (regarding the ongoing challenge in relation to the Sukari concession agreement) has been removed. We see today's announcement as a big positive for the stock.'
Westhouse Securities says: 'It is obviously positive news for the company, and reinforces our belief that the company is likely to win its appeal. However, until the challenge is removed we are retaining our 18% discount rate on the stock.'
Impediment to takeover bid is Centamin only owns half although endeavour did bid for that half at a price rather better than now!
The court ruling means very little.
The gold price and US $ ,make the difference,but we will wait "Patiently" ,as normal ,to find out.
More likely now, plus price is still low- well under what endeavour bid when this issue was on the table and the future no where near as bright …. Lots has been done since then esp. in terms of the backlog !
Impediment removed, does this now clear the way for the long-rumoured take-over bid?
Should have an influence on SP I would have thought. - A long standing impediment that would flash-up during due-dilligence procedures now out of the way. - It should make a differnce. IMO
Not much reaction so far...............I guess it was factored in , in all honesty but good to get sorted.
Maybe will get a delayed reaction Thursday up to a£1
Good news indeed, now let us see how the market reacts. Also if CEY communications wake up and do something usefull with it.
Today 10:30
RNS Number : 0754V
Centamin PLC
29 November 2023
29 November 2023
Centamin plc
("Centamin" or "the Company")
LSE: CEY / TSX: CEE
favourable FINAL egyptian Court Ruling
Martin Horgan, CEO, commented: "Further to the announcement made by the Company on 16 January 2023, we are pleased to confirm that the Egyptian Supreme Administrative Court issued a final judgment today, Wednesday 29 November in Centamin's favour, setting aside the 2011 third party challenge to the validity of the Sukari Gold Mine exploitation licence issued under the Sukari Concession Agreement. This final court judgment marks an end to this long-running litigation and is warmly welcomed."
Summary
· On 14 January 2023 Egyptian Law No. 32 of 2014 ("Law 32") was upheld as constitutional by the Egyptian Supreme Constitutional Court ("SCC Judgment")
· Law 32 provides that only parties to contractual agreements between the Egyptian government and an investor(s), such as the Sukari Gold Mine Concession Agreement ("Concession Agreement"), have the legal capacity to raise challenges against these agreements. Third parties are accordingly prevented from lawfully instigating such challenges.
· Following the SCC Judgment Centamin applied to the Supreme Administrative Court ("SAC") to rule that the 2011 challenge to the Concession Agreement is now legally inadmissible on the basis that the original complainant had no capacity to bring the claim as he was not a party to the Concession Agreement
· The SAC has today ruled in Centamin's favour, rejecting the original case in its entirety. The claimant has no right to appeal and today's judgment is final and therefore brings this long-running litigation to a close
· Operations at Sukari Gold Mine have remained unaffected throughout.
For more detailed background information on the original proceedings and the Law 32 constitutional case please refer to the announcement issued by Centamin on 16 January 2023 (link to full announcement).
Court ruling
What caused the rise yesterday?
Major European stock indexes traded mostly higher on Wednesday during the premarket session as investors focused their attention on a new batch of economic data. Reports on UK housing prices, German and Spanish inflation, and European Union consumer confidence are expected to be released today.
The DAX increased 0.25% at 8:00 am CET, while the FTSE 100 was flat. The CAC 40 improved by 0.06%, and the pan-European Euro Stoxx 50 added 0.13%.
The euro gained 0.12% against the dollar at 7:58 am CET, to sell for $1.10011, while the pound went up 0.14% compared to the greenback, going for $1.27125.
Baha Breaking News (BBN) / JJ
Happy hump y’al
Pog + .15% $2044.36
And about an eighth of that in profit less non Sukarno capex but still nice. Profit nearing £100m PE 12 spot on historic average. So share price right for where we are now. Let’s hope gold rises, aisc rally falls, output really rises oh and what was that large pink thing tailing a q that I just saw flying over the deser….Maybe it will all come true ….
Mr bond
Your fiat in gold very smart
https://www.motorauthority.com/news/1025257_studiom-24k-gold-fiat-500-pepita
Thanks Torn
Nice to see gold cruising through A$3030, and us$2040...perhaps Goldmans are right .. and/or perhaps they are in the market, in a positive way. The 10 year graph looks good to me ... but I am not a graphing expert
The McKinsey report is interesting and thanks for this.
My take on the gold industry in the context of feasibility studies...
1. Too few measurements (on a % of ore volume, and distribution int he ore body) of the amount of leachable gold, which is the gold you make money out of. The infatuation with the new total gold assay method of Chrysos (when its working) is a concern in this (Barrick are installing this throughout their operations?). The industry needs to measure what it makes money out of, and to do so in a far more exhaustive fashion than is current considered best practise.
2. Similarly geotech is undersampled, if not chronically. This leads to the surprises in pit wall failure, and suboptimial blasting. The suboptimal blasting, leads to issues with size fractions resultant from blasting, which are eventually fed into the mill, with suboptimal results.
3. The industry has an unhealthy reliance on measurements out-of-hole, as opposed to in-hole, in-situ, which is a larger measurement volume of what you are going to mine, and between hole which can give you a far greater effective volume of measuremet for geotech.
4. The reliance on drilling to obtain insitu measurements introduces another suboptimal bias (directional) in sampling,
THere are ways around these issues, but the industry does not use them enough, if at all in most sites. Hole to hole tomography would get rid of the drilling bias to a large degree. Routine measurements of leach rate, as is now possible with detectORE would assist in the geomet.
Anyhow the industry is what it is. A slow moving beast, using a lot of thumb sucking...which does not always work
the Gnome
Thanks for your reply and appreciate your comments.
Hehe- 95.55 close... go gold, keep going :-).
So far he was spot on .
He mentioned 27/11/23, so yesterday bught more gold coins.
Well its better than Fiat.
Gold skyward circa $2035.09
Yes but I'm guessing they can only sell bullion mon-fri but I might be being naive.
let's call it $20million a week.
Hi 3bear,
How much does it make on the other two days a week?
Sukari operates 24-hours-a-day, 365 days of the year
https://www.centamin.com/media/2945/centamin-ar22-strategic-report.pdf
Currently $2028.39
Second attempt
https://www.mckinsey.com/~/media/McKinsey/Industries/Capital%20Projects%20and%20Infrastructure/Our%20Insights/Optimizing%20mining%20feasibility%20studies%20The%20100%20billion%20opportunity/Optimizing-mining-feasibility-studies-The-100-billion-opportunity.pdf#:~:text=McKinsey%20analysis%20of%20publicly%20available%20data%20finds%20that,and%20largest%20open-pit%20projects%20by%20around%2040%20percent.