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The best position all shareholders would like is a positive outcome and closure of the CC.
However pending such an outcome the status quo is of benefit because no result is better than a ruling against CEY and gives CEY time to put in pace a Plan B.
I don't know the detail of the latest Commissioners Report (perhaps Siko does?) but even though the facts support CEY there is no guarantee the judiciary will rule in the favor of CEY. As can be seen in the world over, judges can have their own agenda and thinking. Especially in “political” cases such as the one against CEY. So to my view it is prudent for CEY to be patient and use the time to lobby behind the scenes and in parallel to work on Plan B i.e new license areas.
My worst nightmare is a ruling against CEY (for whatever reason the judiciary come up with) especially before new license areas are secured. This is not a slight on the integrity of the Egyptian Judicial system but judges the world over being ex lawyers have a propensity for coming up with wrong and or unjust decisions because of their own political / social views, so called legal way of thinking and lack of knowledge of the real world.
Certainly the company should be more interested in bringing about a conclusion to the CC as it affects the value of the company and market/investor sentiment.
Another way of looking at the situation.
Has either EMRA or the company put any real effort in bringing it all to a conclusion, or could they in reality, after all the judiciary is above politics , to change them in anything needs an Act of Parliament.
Maybe neither is interested. It makes it ,the company, less interesting for outsiders to takeover.
It probably suits both more as it is.
The CC, is in reality "A red herring". As it does not affect producing gold. That is all both are interested in.
IMO.
Take your point Mr Bond,
But how long would it really take to dismiss the case based on the fact that Hamdy El Fakharany has admitted that there was no substance or truth in his accusations and he is now a convicted felon living in exile.
All it would take is a judge or two to give a ruling or dismiss the case, it is after all over eight years since this started.
The legal system as far as what is obviously considered by the judiciary in Egypt , as a minor case ,apart from possibly affecting the SP for the companies shareholders, us.
Everything , excluding criminal cases ,has been put back .
Caused by the virus.
That is how it is here in Spain, which like Egypt was already a very slow legal process.
So I for one would not hold my breath waiting for a conclusion.
But that is only my humble opinion on the CC.
HI Cowichan,
As we are aware the original Sukari concession profit sharing agreement is more favorable to EMRA than these latest concession agreements with new companies.
This makes the claims of Hamdy El Fakharany that Centamin had received preferential contract terms all the more ridiculous and is further justification for a ruling in favour of Centamin, or for the case to be dismissed completely.
But an official ruling is essential whatever!
I agree we should always be wary when it comes to possible legal challenges however we have at least two reasons to be optimistic:
1) The power to issue new contracts has been transferred to the EMRA by an act of parliament
2) Barrick and B2 Gold would hardly make a substantive investment if they see/suspect the end game to be surreptitious confiscation of their concessions
Thanks for bringing me up to speed. The link seems to be in arabic which unfortunately in my case is non existant so I shoved it in a translator. It seems to talk about replacing "Egypt fund" with "Egyptian Sovereign fund" which I assume is mainly administrative.
In essence that takeaway from your posts seems to be the law protects contracts from 3rd party legal challenges which I presume to be good news for CEY.
2012 - 2014 - 2015 - is this relevant to today or is there another update ruling due?
Egypt New Law 32 Amendments Dec 26th 2019
Siko
https://economyplusme.com/19821/
In a strange move, the council of ministers today issued a draft of a law similar to law 32 to protect all contracts awarded by an investment trust headed by President Al-Sisi from any legal challenges.. Exactly the same wording of law 32.. To the letter.. and now will see what the parliament would do with the draft.. will be very interesting..
I find it really strange to issue a law very similar to one that is being challenged at the Supreme Constitutional Court!!
Centamin Court Case Mon 07/09/2015 11:26 thorn removed with arrest
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.
• 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
Hi Mary,
Yes 2012 court case, gives you an idea of how long things can take in Eygpt, it was due for a final ruling , but then Law32 came along and that is still being re considered by the SCC and until they make their decision the court case has been put on hold because no judge is willing or able to deliver a ruling.
24 April 2014, 10:33
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.'
If the ruling is made in Centamin's favour, we expect a significant re-rating in the share price as the market once again returns its focus to the actual mining operations. At its peak in 2010, the shares hit 190p. While there's obviously been a reduction in the gold price since that time, production levels have significantly increased – this year the miner expects to produce 420,000 ounces of gold.
https://www.sharesmagazine.co.uk/news/shares/centamin-eyes-end-of-legal-pains
Is that the 2012 Sukari court case or another?
Given that Centamin supposedly has a great relationship with Emra and the Government, why has the Department of Justice not intervened to settle this outrageous outstanding issue? - The cc is still a threat to Centamin, an unsettled serious issue that is still a pawn in play on the political chess-board. - Make no mistake, this chess-piece has been left in play for a reason. - One day we may find out what that reason is and we may get a shock when it does become clear. - IMO