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CSD
Only a fool or a very naive person would believe the markets are rational. They are in fact far more emotional, with the lemmings getting blown around by the tides of the influence peddlers (many having taken positions before exerting influence of one way or another, depending on the position they have taken). Bitcoin is a classic as I have pointed out previously. In N America they seem to think this behaviour is OK and just part of the promo. In other jurisdictions, it is called conflict of interest etc.
The major issues at the moment
1. The transtion to a more professional management and leadership. Very common in my experience that the guys who get the sship going or work on development, let it all go to their head, and they think (miraculously) that they can run an operation. Two different skill sets. CEY in my opinion has taken too long to transition, but the new leadership, board and management seem to be intent on running the operation. The market waits to see the walk. The talk is fine. But does walk=talk?
2. The POG and gold sentimient is taking a buffetting. Not much one can do about this BUT, as I said before, its great time to reign in the costs, get rid of personnel who are not up to it and be more strningent on capital deployment... and its just part of the business cycle,
3. The massive uncertainty, which is fuelled by the global economy being in unchartered waters, the weight of political and media nonsense and unreasoned anxiety going on about the virus, the economists siezing their chance to go apopleptic (again, worlds going to end etc) and RESET the global economy (and we know where that will end up)
West Africa. Yes I am frustrated at the lack of clear and decisive aciton, but there must be reasnon for this. I know that some of the "management" theyhad in place was "not the best", so relieved that they have moved on, and I am hearing better things about the new crop in West Africa. It does take time to get on top of being a best operator in this jurisdiction, but if you manage via clearly communicated principles and in a disciplined fashion, you can make a lot of money. The reverse is true
best
the Gnome.
Hi Gnome
I've been investing in CEY since Feb 2011 and always struggled to do well, but did eventually get into profits before closing an old investment account in 2017.
Having started a new investment (SIPP) in 2018 I have recently bought some more CEY and again find myself under water about 16% down after 3 months, with an average cost around 125p. I expect to be here for a while but disappointed the same old chest-nuts are here. CEY has been "talking" about West African resources for all of these 10 years, and yet still has only one gold producing facilty at Sukari. Clearly the current SP is suffering due to the waste issues, the recent drop in gold prices and the fact we only have the single asset. How much longer before CEY actually has another working mine to help when Sukari has issues ?
It is galling when a junior miner like GGP with no actual production in sight, has MC of £865m, while CEY has £300m in the bank, has been making profit for years now and only has MC £ 1213m, just a few million more than a embryonic company.
Irrational markets spring to mind..
Cheers & GL to all CEY holders - CSDI
Remaining intrigued as to what Centamin have planned for the West African Assets, including people and know how. Their first foray was less than brilliant, especially in terms of people, but, like many mining ventures, they have landed on their feet with new discoveries in Doropo and ABC, both within Cote Ivoire. The number of significant gold discoveries in the Birrimian of West Africa is above that produced from other geological terranes in the last 10-20 years (see the work of Richard Schodde). In fact Tier 1 discoveries are becoming very rare, as are Major gold discoveries.
In West Africa Centamin sit on 5 m ozs of gold, in the Measured and Inidcated category, which is not a bad starter resource for any company, and I would suspect not a bad starter for a West African Gold Operation. I would think they need to do some PEA and get some better feel for how many of the resource ounces convert to reserve (minable) ounces, and indeed how the projects stack up against their financial metrics for capital deployment. If they dont make the cut, then divest into some vehicle, that can make these resources into profitable ounces.
One of the advantages in West Africa is that you have a very nimble propsecting group, composed of 5 million persons (called artisinal propsectors and miners), who are proven ore finders. They keep turning up the goods! Having watched these people throughout West Africa, they are an amazing group, with the key is they get out in the field, sample down to very fine densities and know gold when they see it (you maybe surprised that some Geologists have trouble with this?)
Of interest is that there is new gold technology comning into the field this year, which will enable people to measure gold in soils/rocks down to 20 ppb in the field in same day. Game changer, and game on for those who are serious about exploration!
https://portableppb.com/images/pdf/detectORE_Overview_Website_101011.pdf
best
the gnome.