Member Info for 3bear

Hell's teeth gnome this makes me feel slightly nauseous.

uh-oh. Stand by for solar plant expansion study. It's never-ending this is it?

Dasut - fingers crossed we're going to see production in Q3 and Q4 around the 120,000oz mark for both quarters + Sukari resource update, Doropo PFS, grid connection study, UG expansion & solar plant commissioned. That is a lot of good news coming down the pipe.

Fair enough Mr T, I may have been a bit harsh, he's just not for me

Apols MrTibbles I don't buy too complex to understand. I don't want to cause any offence but my view is that Maguire can be safely ignored. I'm really happy to be corrected by anybody here, but after doing my best to decipher him, it seems he says this:
1) The true price of gold is a zillion bucks per oz.
2) The only reason this is not manifest is due to a comex/paper gold conspiracy.
3) The answer is to buy physical gold (from me)
4) Repeat endlessly.
5) Use as much indecipherable jargon as poss to disguise 4).
6) Er, that's it.
While this shtick may be comforting to those invested in a poorly performing gold producer, I'm not sure it's useful. Tibbs I mean no disrespect, I'm relatively new here and more than open to counter arguments, if I've got this wrong I don't want to dissuade people from listening to good source, I just don't believe that's what Maguire is.

I've tried listening to Maguire a couple of times and not understood a word he was banging on about. This bear of little brain needs things set out in simpler terms...

There's been a coup in BK so the quality or otherwise of the site is irrelevant. If you don't have political stability, you don't have a mine.

Ah Mr T our posts crossed - thanks no prob. The frustration with the way this company was mismanaged is all too evident reading the posts on here. Let us hope things are really on the up from here on at least.

Hi Mr T, I fully get your aversion to debt, too much can devastate, or kill, a company - as a former investor in Vodafone I'm lucky to have avoided a massive haircut on that stock and its debt levels still give me the creeps. Cey's unbelievable balance sheet was one of the things that persuaded me to invest in the first place. But as Dasut explains so neatly it would be nuts to try to build Doropo off organic cash flow and some debt in a company of this size is desirable as long as it is kept at sensible levels. Also its going to be unavoidable if you consider Horgan's to-do list:
1. Transform operations at Sukari
2. Build Doropo
3. Fully explore Eastern Desert
4. Mergers & Acquisitions. Yep they want to buy another gold operation on top of all this lot and they'll have to borrow all of the cash to do it.
This is why I think the dividend is going to be flat for the foreseeable future, they've got so many better things to spend it on than us. This is a good thing - divs are great but significant SP growth is better in my book - let us hope we get some. Good luck everyone.

Dasut thanks very much - excellent and encouraging response

Hi Dasut,

What do you think of the political stability in Cote D'Ivoire? From an outsider's pov Doropo looks like a solid go - Horgan says he's comfortable working in 'Francophone West Africa', he has experience of building a gold mine from scratch in Senegal (and selling it for a stellar profit) and there are no corners being cut - PFS - DFS - only then start construction. Plus around 5m inferred ounces about to convert to indicated, in short it looks great to me, but must admit Mr Tibbs concerns have rattled my confidence in it a bit...

Hi Tibbs, I appreciate the longer-term shareholders here have been put through significant stress and financial loss as Pardey made a huge mess in the pit. About the only good thing I can see is that he left centamin with a quarter billion dollar cash pile but that's about what it's going to take to put things right. I've only been a shareholder for about 18 months so it's easy for me to look to the future rather than the past. Respect to you for hanging in through thick and thin. Re Doropo on the face of it it looks good - 5m oz inferred - lots of drilling about to convert many of those ozs to indicated which ought to give another boost to the SP. Cote D'Ivoire reasonably stable. Looks good but I'm not a miner and have no experience in Africa so am completely reliant on Centamin/Horgan's judgement on that call. The rewards are certainly worth going for but what are the risks?

Interesting that he mentions a potential debt facility for future M&A. Not heard that one before.

Cheers Razors!

To return the compliment one of yours made me cheer yesterday!

The only thing you can do wrong with Centamin in the near future is not have your line in the water.

Hi Sotolo, yes I think your fears about the gp may be warranted but if it does go that way there's not a lot the management can do about it. That said, production is heading up, should be c120,000oz in Q3, and the AISC is starting to come down albeit from historic highs. All this money pumped into the business is not a dead loss, it is significantly improving production and efficiency which will help to limit costs in the medium term?

No prob - yes absolutely, there seems to be a real sense of a gathering momentum within the business. Let's hope the good news keeps on coming

The UBS analyst challenged slide 6 as "fairly optimistic" due to estimated construction period for Doropo to full production in 12 months. Horgan immediately concedes there is "probably a six month shift on slide six effectively" (around 53'20 on the presentation) but then goes on to say they can begin construction of basic infrastructure at Doropo before completion of the DFS, something he managed successfully at Toro Gold to speed construction.

Hi Prof, I wasn't able to listen live to the presentation but have just listened carefully to it and yes of course you are spot on (I expect this from a professor). So connection to the grid would be equivalent to another solar farm in terms of savings on diesel 40-45million bucks a year for solar+grid combined and (relatively) quick and easy to do. Just shows you what an awesome project (on time and on budget) the solar farm is - offering equivalent power to the national grid - and almost for free once built. What was so exciting about this presentation for me was the progress they are making on all fronts. Really very encouraging.

He could in theory - but has already indicated minimum of 5c this year obs

Quite right Mr T and as FCF is negative for H1 he could pay a dividend of zero for the first half.