Member Info for 3bear

Mr Horgan is going to keep the divi as low as he possibly can get away with IMHO, I'm convinced he wants to grow this company into a beast and that's going to take every ounce of spare cash he can generate and every dollar he can borrow. They've already got Doropo to build and multiple viable targets to develop in the immediate vicinity of sukari - that's before they start to rank the discoveries they are about to make in the Eastern Desert. With such a long to-do list, handing precious cash to shareholders is going to make Horgan choke. I think this is great. Whenever I hear of a big company doing share buybacks it makes me think the senior management has run out of ideas about how to grow the company. This is one problem centamin appears not to have at this moment, which is pretty good bearing in mind how many probs they do have.

Cmon Mr T this is fantastic. Egyptian contractors completing a massive project that will save millions of dollars, tonnes of CO2 and a good chance it will remain an infrastructure asset for the Egyptian people once the mine is done - although if the life of mine is actually 50 years perhaps not the last one. Plus gold is heading back up with the SP kicking along in its wake. More good news due on Aug 4, I'm heading to the beach!

Thanks cowichan, interesting stuff.

If electric trucks mean less ventilation infrastructure at depth they save quite a bit of money I guess?

Good to know the Barrick infiltration is being monitored, keep it up.

Cheers MrT. So solar will displace 22m litres of diesel, but that leaves a 124m litre fuel bill for power generation before they refuel a single truck or excavator. That is a colossal amount to transport let alone pay for (3500 tanker truck loads I make it - 10 tankers of diesel every day on electrical power alone) They can't hook up to the grid quick enough surely?

1) Having just re-listened to the Q2 webcast it seems solar will save 15% of the diesel used for electrical generation. That means, I think, they are burning 146m litres on power generation before they put a drop in the trucks. At "more than 80c/litre" that's 120million dollars a year.

If I understood correctly, there is a brand new power line 30km away and a route to it has already been surveyed for running a pipeline up from the red sea. This has got to be done hasn't it?

2) Could any of the miners here help me with the wider significance of electrifying the UG fleet? Horgan mentioned something about ventilation shafts and I wonder if electric trucks and plant not only save diesel but mean the infrastructure requirement for UG operations is lessened? V curious about this.

Either way both projects would hammer the AISC in the short term. But there is good news, there will be jam - oodles of jam - tomorrow. Or maybe next week. Good luck everyone.

The future's bright my friends - wonder what tigger will be claiming 3 months from now

As sotolo highlighted his big worry is the AISC and I think that's the biggest drag on the SP apart from the GP.
If Horgan delivers mid-range on his guidance for 22 it implies AISC in Q3 and Q4 will be around US$160m with the total spend for the year around $620m.
In Feb this year they were guiding FY23 AISC at 975-1200 but wrapping a world class mine around this world class ore body is proving to be an expensive mission and they haven't mentioned 2023 AISC since.
Having said that I believe we are starting to see the benefit of all the investment piling into Sukari and hope we'll see steady improvement in production and AISC as time moves on.

to answer my own question diesel consumption for electrical generation was reported as 90-100m litres a year in 2020.
Cey is currently paying the Egyptian government 80c/litre for diesel so around US$80m a year on electrical generation alone. Solar ought to reduce that by around US$16m but connection to the grid would remove the remaining $64m dollar cost - although this would be replaced by a cost of buying 120MW of juice every year from the grid. There's also the fixed cost of building the power line out to the mine.

Hi Paul - the mine is fully off grid and all of its energy is provided by burning 200 million litres of diesel a year - to power the trucks and plant but also to generate electricity. This is inefficient, polluting, expensive and about as bad as it gets from a carbon emissions pov. The only way to be less green I can think of would be to build a coal-fired power station on site. Solar will save 20million litres of diesel per annum, which is great but still leaves a 180m litre fuel bill. Grid connection would eradicate diesel generation of electricity - cheaper, more efficient and significantly greener. No-one asked how much fuel it would save - I'd like to know the answer to that.

apologies, 4.1m less capex than Q1

big concern is the AISC - US$150.7million this quarter and that's with 20m less capex in it than Q1.
Production v good on the bright side.

Thanks deepjoy really useful

Does anyone here have a view on whether the Royal Mint's Digigold platform is a sensible way to hold actual bullion for the retail investor? All thoughts pro or con welcome?

74.5 my mistake

I just topped up 5500 at 74.4 you'll see it on the trades in a mo. My belief is Q2 results will be positive. Fingers crossed.

This is my guess -

Production 107000oz
AISC hopefully below 1400
Gold sold 105000 @ 1830
Revenue US$192,000,000

Think a lot will depend on how far the AISC comes down.

Lower capex in Q2 good, higher fuel transport and consumables bad.

A nice boost in production would be a tonic

Another six months.

GP tanks.... Cey UP

Bank of America raises Centamin price target to 140 (130) pence - 'buy'
Berenberg cuts Centamin price target to 112 (114) pence - 'buy'