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We’re delighted to welcome Newmont Corporation for 3rd Egypt International Mining Show - Virtual Connect 2022
https://www.linkedin.com/posts/egypt-international-mining-show_eims2022-miningevent-miningindustry-activity-6910105857653395456-XrxD?
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I didn't see Newmont entering the Egyptian scene... what or who will be their entry point?
What will be the potential impact on CEY?
Aether
Newmont is the third (and largest by market cap) major to show interest in Egypt -
Centamin has the only commercially producing mine and largest - perhaps most prospective - land concessions
Therefore a case could be made for multiple offers to acquire or strike some sort of co-development deals with Centamin - the latter being this shareholders preference
So, it is potentially good news for CEY shareholders?
Aren't new concessions offered at a much improved rate split eg a lot less than 50% going to government? Unlike we are with at sukari? Isn't this a block for any takeover? Why would newmont coming in be good?
Hi SteveJones999 and Aether
re: Is it positive/good that Newmont enters Egypt?
For those punters who were hoping that a big player might be interested in buying Centamin to make a quick trade - this should be good news - you obviously need an interested buyer - and this is the first time to my knowledge Newmont has ever indicated interest in Egypt's mining scene.
For myself and perhaps other long term holders - I prefer if Centamin remains in control of Sukari because we haven't yet seen the value creation fully realized.
re: Isn't the current terms at Sukari a non-starter for Newmont or Barrick?
As Tibbs has pointed out many times in the past the 50/50 profit share isn't really egregious all things considered i.e. Sukari's ability to recoup capital/development expenses , the inexpensive labor costs associated with operating in Egypt, the low chance of environmental challenges being based in the barren desert, decent infrastructure, fantastic opportunity to utilize solar power, skilled workforce, etc
Additionally , we know Barrick , B2 and Centamin have been negotiating royalty rates with the EMRA for the new concessions and according to Mr Horgan the particulars are 90% complete - finalization is expected by Q3
To sum it up — Newmont like Barrick isn't interested in small, short duration operations - which means they see Egypt and more specifically Sukari as a long-life/large scale opportunity IMO
Agree with Cowichan Newmont have a track record of gobbling up miners.
https://www.kitco.com/news/2019-04-18/Newmont-Goldcorp-Complete-Merger-To-Form-Largest-Gold-Producer.html
Yes, but I maintain "hey would I but CEY when I lose half my proftis"... when "if I go into Egypt and there are lost of new concessions out there, and I don't get battered with the 50/50 share, in fact a lot less"... so my question remains, why would I buy CEY? I'm very disappointed that has the 50/50 didn't change when new concessions were offered at a much better rate- especially have CEY have constantly given a lot of money to Egypt with the 50/50--- what price loyalty? Where's the loyalty benefit? As for the SP, the "jam tomorrow" remains. Need s strong Q1 and Q2 and so on to demonstrate the turnaround. Sorry to sound less optimistic, but this is how I see CEY- am frustrated about the lack of share purchases by the Board- especially as they are so well renumerated- I'd sooner see Horgan's salary slashed by 80%, along with the rest of the board, and have them being paid on SP performance. Have been trading this one over the years, and accept the poor management in the past, but do think they owe more to the average shareholder.....
First sentence should say "why would I buy CEY when I lose half my profits".... when "if I go into Egypt and are lots of new concessions out there, and I don't get battered with the 50/50 share, in fact a lot better deal"
Only proper that cey can review and renegotiate their terms for Sukari on the back of better terms for new mining entrants into Egypt.
You would think that after all the money that erma has had from centamin, that they would be doing all they could to help Centamin out, regards reduced profit share, favourable rates for fuel, Cough cough Law 32 .
If they took a reduced share but Centamin could expand and produce more gold at lower costs, then they would get it back in spades.
Steve, I know Newmont as a company and they are extremely conservative and agree that a 50% share of their net profits after what would be a sizeable purchase price doesn't compute.
To think that it is only now that Newmont is interested in Egypt is way off beam, they will have been monitoring what has been going on for some considerable time. I am not sure that even the new revised terms of business will actually suit their business model. As for how Newmont will if they feel it is of interest enter the Egyptian market it will be on their terms and I have serious doubts they would need to spend millions on buying Sukari. There are a number of junior mining companies with large areas to prospect and Newmont will be closely monitoring developments in these areas.
As for the comment relating to the boards buy in and high salaries I suggest you send a question to the board but this is something they might find difficult to answer in open forum because a negative response could have an adverse impact on the SP and a positive response well could that be bordering on insider trading, not sure.
Agree Dasut- my comment on renumeration was merely a statement of what I would like to see in a public company and not big salaries with zero risk.
Agree too Paul- nuts.
Stranger things have happened..
Lots of news coming up these next few months and who'd want to be out if there was a good RNS just around the corner?