Firering Strategic Minerals: From explorer to producer. Watch the video here.
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What a superb and world class business Centamin is becoming?
The efficiencies achieved at Sukari are fantastic. Putting things right from the ground level up. Matching excavator bucket sizes to the truck load capacity properly has resulted in significant increase in Mt shifted just down to good practice, a tyre workshop to extend life of tyres at 12000US per truck x48 trucks, recycling grinding media, reviewing explosives and leech consumables to increase effectiveness, the coming gravity circuit to extract gold before it even hits the cyanide. grid connection - even if there are power cuts during the day sukari can load up the batteries overnight from the grid and then whack in the solar from dawn to dusk. It's not just the diesel saved it's the trucking out to the mine site - an artic-tanker truck delivers around 30,000L per truck, so at the minute that's three tankers of diesel not going to sukari every day due to solar this is fantastic. This company is rare in that it is doing everything from greenfield exploration/prospecting to site development to crunching out ore in massive volumes. It is the most exciting stock in my portfolio and I urge you to BUY. (Er Alex BC what is my fake name on here is it 4bar or something, best Martin xxx)
3bear,
Spot on ,pity the troll and friend do not want to know the truth,
In all seriousness, and for what it is worth, I think Martin Horgan is a superb CEO, he has the bit between his teeth. the work he is doing at sukari, or rather the work his mine manager is doing under his direction has given me massive confidence in the management of the open pit in that we will not see any sudden drops from here. The focus on safety, that a safe mine is a well-run mine by definition (DASUT any views on this?) rings true to a non-mining investor like me. The ounces growth will not be as fast as some would like but his emphasis is on sustainable growth. Isn't sustainable growth the holy grail of good investment? This stock is not without risk - every possible, fabulous and imaginable wibble wobble wahoo WTF I have issues type risk is put on here by cowichan. But the bottom line is this is a well run business in a slightly risky set of jurisdictions. If you are happy with the latter, then invest as much as you feel comfortable with and I think things will go well. I'm all in at this point at an average 95.8. Doesn't mean I don't regret doing a steve and offloading at 99 to pick up at 93 the other day hey ho - but on balance this is a good long term bet. Good luck everyone.
The CFO was on board with what a lot was delivered along with a host of staff involved in a cost efficiency drive involving $150M per annum. All of those teams deserve credit as well.
As for Centamin in the past and what it is now. Well a leader can look good when they extract what is good at the time and leave a polluted mess behind as they do not get care about the inheritance to others. It is the leader who is a builder who is not the emperor in his own kingdom, has a vision of leaving behind value, excepts criticism and feedback as it generates an environment of creativity and efficiency, has the strength (and humour) in that role supporting development of others is the true and better leader as they leave behind the aspiration in others of an example of being the best they can be. Tony
3bear I thoroughly agree that a safe incident free mine will normally be an efficient highly productive mine. Emphasis on the word normally because currently Sukari isn't an efficiently run mine. Why is because the strip ratio due to the abnormal waste removal inevitably means costs are abnormally high.
If however the cost reductions in other areas weren't in place then we would see far worse numbers, so credit due to the current management team for some good strategies.
I don't see Sukari becoming an efficient, productive acceptable profitable operation until the waste contract has finished.
I generally read and hear good things happening at Sukari and that they are pretty much over the major hurdles created by the less than efficient few years prior to 2020.
The proof of the restructuring of management and the operations will not be fully understood until we see a mining operation not a mining operation with an expensive non profitable muck shifting project carbuncle needing to be lanced and removed.
Unfortunately the carbuncle has taken years to develop and will take a little longer to be removed.
Hi Dasut. So (fingers crossed) as it looks like the waste clearance is supposed to be coming to an end in the middle of next year, do you think that the figures will significantly improve and would you like to hazard a guess? Obviously normal waste clearance will always have to continue, but the backlog should be cleared.
Also , do you think we will get more gold mined per year and would you like to guess on how many more ounces?
I understand we are largely tied to gold price so anything is at best an educated guess.
Thank you.
Mr T gave an AISC cost reduction approx amount, I can't recall exactly what is was, but am sure he can provide again. It didn't seem unreasonable to me and would be good if this happens- equally if you look at latest forecast presentations for future AISC in their website, this could provide a clue too.
Paul, I wish I knew even hazarding a guess would only bring me to a target output of 500,000 ounces per annum which really isn't a guess because that is what is being reported. The important element is what the cost per ounce will be and whether there can be an improvement of the open pit grade and obviously a favourable Gold Price .
Also in addition to the waste clear up how much of the contract involves opening up ore bearing areas, "advance stripping" resulting in free dig.
I absolutely hate guessing because there are so many factors that are unknown which frustrates the hell out of me as gone are the days that a site visit would give me the warm fuzzy feeling or the run for the hills feeling.
Hi Dasut,
I hope that you are well!
I know I am not alone in appreciating your informative posts based on years of experience in the business and indeed your in-depth understanding gained from professional experience at Sukari.
Although denied for may years and glossed over with Andrew Pardey's high grading it is apparent that Inherent grade problems are the norm fort the past and indeed for the future.
Eight years or so ago Kees Dekker said that the underground operations were critical to keeping the mine viable , certainly it was noticeable that as soon as Martin Horgan he confirmed just how crucial the underground workings were to to the whole Sukari operation!
Yet whilst the underground operations seem not have been regarded seriously how many years and how much money was spent on the Cleopatra slope that never seems to have resulted in anything!!
But thank you for your clarification of importance of losing that huge carbuncle of waste clearance !
Keep well
Tibbs