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An excerpt from Centamin IR latest reply (parenthesis all their words - not mine)
" Accusation of misleading statements in the Annual Report - Centamin have not made any misleading statements in the Annual Report... "
"... the Sukari 2D seismic was a trial of the technology. That means the technology was trialed over known gold structures. No material information from that study has been withheld. The technology confirmed several of the structures, but management concluded not to allocate capital to the 3D seismic survey..."
-------------------------->>>
My Thoughts:
Figured I needed to keep fellow shareholders in the loop as to Centamin's replies. If anybody has had other replies regarding the HiSeis survey and they would like to share - please do.
A few points of contention:
1) The original response I got from Centamin said "in 2019 we trialed a 2D seismic survey to see what the data showed. The quality of the data was inconclusive"
How then in their latest response can they say the HiSeis survey "confirmed several of the structures" Either it did or it didn't!
2) Remember that Centamin's Audited Annual results of 2019 states " ...initial data interpretation is very encouraging, identifying multiple potential gold systems and exploration targets..."
3) To date NO HiSeis data, graphs or details other than that extremely positive statement in Centamin's Annual Results has been shared with Centamin shareholders or the general market.
The HiSeis survey results however can and probably already has been shared with interested 3rd parties.
4) The 10k meter brownfield drill campaign around Sukari (which is now likely concluded) relied on the data obtained from the HiSeis survey to pinpoint drill targets - which makes the seismic survey data highly, highly relevant and most certainly 'material' which means they are legally bound to share it with the market
I continue to call on Centamin's management to release the results of the HiSeis survey to its shareholders and the general market immediately.
Please share this chat post with Centamin IR if you too agree
here's the linkedin post IR has an issue with
https://www.linkedin.com/posts/don-lawson-98619370_centamin-sukari-gold-activity-6897246917709955072-Mzmo
Keep at it mate. Always good for management to know that someone out there will hold them to account.
Hi Cowichan,
It is worth bearing in mind that market regulations do not require or stipulate that management has to disclose all and everything, but only items that are material.
Other wise they would flood the shareholders and public with notifications and interest in new ones will soon be lost, because it will be perceived as a waste of time.
Re 2019 Seismic survey opinion of mining analyst consultant
Early stage exploration is a very low success activity and one must expect that almost all efforts will be wasted.
Geophysical surveys are early stage exploration activities.
without knowing the geology where the seismics was applied, it isn't possible to understand why it was used in the first place.
Seismic survey is generally mostly useful where there is relative simple geology and in stratigraphy that is sedimentary.
Hence the use of seismic in the oil industry, however even then it is not a surefire method to identify oil traps!
On top of this, seismic is the Most Expensive geophysical method available!
Hence it should not have been used in the first place based on cost/benefit!
It seems the old Board was convinced by a smart salesman to try the method!
Is it wise to be trusting a seismic contractor, which clearly has an interest to play up the results, more than the company(Centamin) commissioning the work?
From this I can only conclude that the Centamin management has made the right decision not to forget the Seismic survey and move on.
Remember Cowichan there are always those who say "We should do this" when in reality they mean "We should do this, shouldn't you!"
Tibbs
Hi Tibbs,
I want to agree with you but I hesitate to blindly trust the current BOD. Apologies for the rant in advance - it's directed at the BOD's - not you:
1) It was the current board who approved the HiSeis survey - not some replacement board who only operated in 2019. And it's the SAME board who is denying us seeing the results.
Isn't there a pattern with the BOD in spending our money wastefully?
Let's do an audit.
Maybe $100 million spent at Batie West/West Africa over a decade with nothing to show.
$260 million to be spent in the open pit "emergency waste removal" program. Will it all be recouped? I dunno. But just trust us, it was definitely needed.
Remember it's Capital Drilling that 'won' the waste removal award. A pretty sweet deal. And Capital Drilling have 'salesmen' just like HiSeis have 'salesmen'. Any argument down the road coming that it wasn't actually necessary to remove urgently? Any alternate plan proposed that saw Centamin's own fleet do the job - albeit at a slower pace?
All we've been doing is blindly accepting the decisions of the same BOD's - until a few years later when they tell us (or don't tell us - we just figure it out) that an error has been made.
How about avoiding the errors in the first place? How about getting a better slate of board members?
But back to Centamin's totally useless, why-did-we-bother, experimental, test trial, too expensive HiSeis survey.
Kirkand Lake hired HiSeis in 2019 for its Fosterville mine - the results were stunning, detailed and invaluable. In Kirkland Lake's own words it was "critical in understanding the distribution of mineralization at the Fosterville Mine" And it led to Angico Eagle launching the takeover. Talk about a waste of money on the wrong technology!
For those who want an education on the technology used at Fosterville - GeoHug interviewed HiSeis on its program in January 2022 - the video link is here https://youtu.be/2MuC-pA6jzU
The reality is that seismic isn't just for oil & gas anymore - the video is a good source of factual information - unlike Centamin's IR dept. ( on this subject at least )
Also, Perseus hired HiSeis in 2020 for their Yaouré Gold Mine in central Côte d’Ivoire - they couldn't be more pleased with the results ( which are discussed at 5:45 onwards here --->
https://youtu.be/2MuC-pA6jzU
Bottom Line: I don't believe Centamin's IR Dept. telling us the HiSeis survey was a bust - Centamin is simply keeping that information private for the benefit of third parties with which they've probably signed a NDA and fear releasing the HiSeis info at this time might breach the agreement. That is yet another mistake by the BOD's.
Anyone who agrees please send this and my last chat post to Centamin's IR and if they reply we can compare notes
That said I totally understand we all have our own opinions - mine certainly can be wrong - just have a look at the videos and draw your own conclusions
Hi Cowichan,
Thank you for your detailed reply, you raise valid concerns in the light of no offered evidence to the contrary by the BOD & NED at that time of their failure to carry out due diligence in the past before signing off projects that have turned out to be a complete waste of many millions of pounds to as far as we are able to ascertain achieve nothing more than an erosion of share holders trust in the professional competence or suitability for post of the responsible culprits.
That said however and considering the BOD & NED's complete dereliction of duty with regard to the proper management of the Sukari mine and the West African exploration projects then it is very difficult to have ant trust or faith in anything they approved or commissioned.
I think we can be pretty certain that the BOD & NED's are quite rightly embarrassed that their failures to execute their responsibilities as they should have done are now blatantly apparent!
My own view is that if they had any sense of honour then a walk outside into the blizzard to not return would be the right thing to do, but I doubt any of them have the integrity or courage to do so!
So that said
Hi Cowichan,
With your permission I would like to send your post to all Board members including the Non Execs and the Regulatory Body controlling the FTSE the FCA This will be by Recorded hard post .
In addition the Jersey regulatory body is extremely keen to maintain credibility (where Centamin is registered) My previous involvement with these organisation would indicate they have an almost zealous intent for transparency in Company communication where affecting the market of which they are involved.
A flag at this stage might influence future thought processes of those wishing a depression of CEY value
Lastly I am most impressed by your in depth knowledge of the Gold mining scenario. I can only offer a knowledge of the markets , regulators and how it works
(or should)
Bob
Cowichan
I forgot to add that Companies House has a Register of all Board members including their address.
Bob
Hi Bob&Liz,
Thank you for your interest and offer of help support to Cowiichan on the issues in question with regard to FCA regulatory protocols and procedures.
I have no knowledge of the Seismic survey process and so I am reliant on other mining industry professionals understanding.
Most likely the Centamin IR are trying to be as helpful as they can within their remit, although their knowledge of Seismic survey techniques is likely limited to say they least and they would just be relaying the company brief regarding results.
There seemS to be little doubt of the magnitude of the dereliction of duty by the BOD & NED's, although it was unfair to expect Cowichan to attempt to fight the cause alone on so many different issues, so your knowledge of contacts and procedures will no doubt be a great help to him.
Tibbs
Hi Tibbs,
Always succinct and understanding and acceptance of those on this board with specialist knowledge. I would however remind you that Centamin IR are the recipient of COMPANY DOLLAR
Both my IR Companies and PR Companies followed my Company line without fail as their income was dependant on my Corporate line and failure was not part of their contractual obligation. Believe me the Regulatory authorities are staffed by zealous individuals who delight in fragging into the light of day failings of Companies in their Company strictures. Many who perhaps hold similar views perhaps to yourself on big Corporate business and Institutions.
With Regulatory authorities behind you Corporate fortresses can be demolished. except of course Comex but look up who is the Regulator of that organisation.
Kindest regards and the balance you so ably bring to the conscience of this board.
Bob
Hi Bobliz35,
Thank you for the reply and indeed you offer to help Cowichan in his quest for some answers on behalf of shareholders
Although I appreciate the wish to share information on this board, there may be some who are looking in that aren't batting on the same team as it were , so may I suggest that you make additional contact with Cowichan on his Twitter or Linkedin email messaging in case you wish to exchange any sensitive information in the first instance?
Cowichan raises very relevant points/questions in his last post, one of which is the very significant value of the clear up contract awarded to Capital, which as we are painfully aware wouldn't have been necessary if the BOD & NED had executed their duties with due diligence over a number of preceding years!
But that said a nice little earner for Capital and it seems that there have always been close ties between Centamin senior management and Capital looking at the names in the tree below
https://offshoreleaks.icij.org/nodes/82006106
https://www.proactiveinvestors.co.uk/companies/news/207814/capital-drilling-lands-contract-renewal-for-centamins-sukari-mine-207814.html
Tibbs