The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
I became interested in the RNS showing La Mancha Holdings based in Luxembourg having 29.9% of Endeavour shares.
Came up with the following
La Mancha is a privately held international gold company with investments in Endeavour Mining and Evolution Mining, having operations in West Africa (Mali, Burkina Faso and Côte d’Ivoire) and Australia, respectively. La Mancha was taken private in 2012 by the Sawiris family. Under the Sawiris family ownership, since 2012, La Mancha has expanded its exposure to mining operations in Africa and Australia, and with this investment in Golden Star, is invested in three mining companies with total production exceeding 1.8 million gold equivalent ounces per annum. Mrs. Yousriya Loza-Sawiris owns all of the issued and outstanding shares of Marchmont Limited, the holding company of La Mancha Holding S.à r.l. Mrs. Loza-Sawiris is the mother of Mr. Naguib Sawiris, Chairman of the Advisory Board of La Mancha Holding S.à r.l. For more information, please visit www.lamancha.com.
Marchmont Ltd is based in the Cayman Islands
Bob
Hi Tibbs
Very encouraging insight from the " man off the train" Hasnt been far wrong in the past. If there is the slightest hint from the due diligence exercise currently in progress by Centamin (much encouraged by Dasuts confidence by those involved for Centamin) and a positive confirmation of 490k + for year on the 15th then game over. Substantial drop in END price and upwards consolidation for Centamin. Fairy land dreaming but reverse takeover then feasible especially as Centamin will have a strong handle on END financials and work in progress. Have followed Cowichan request to contact Centamin Board re Burkia Faso study updates long long overdue but considerable synergy with END in these locations no doubt. Just wonder what obstacles are or will be put in the way of Centamin to delay their completion of the due diligence by the 14th and a further request for another extension. Wouldnt bet against it.
Bob
Hi Tibbs
Yes unfortunately moral or ethical values are in very short supply in the market . However reputation by association and the likelihood of litigation at later date does concentrate minds wonderfully. Not that the small private investor could initiate the cost of such action but if larger Institutions are on the downside of nefarious dealing then they undoubtedly could and would even via proxy action (not unknown) Be very interesting to determine who instigated the action in France against Endeavour CEO. Someone who lost out big probably.
Be interesting to watch Level 2 trading on the 14th . Of course those trades bigger than NMS will be held over till market close . Fascinating stuff.
Bob
Hi Dasut
I like you have been somewhat askance as to the validity of Endeavours financial position so decided to have a closer look at the current judicial enquiry into Sébastien de Montessus President of Endeavour
Corruption charges against former head of French energy conglomerate Areva in regards to a corporate acquisition have also revealed potential illicit payments made to a Namibian mining company and the country’s president.
areva
One of French energy firm Areva's offices. (Source: Janericloebe, CC BY 3.0)
Sebastian de Montessus was charged in late March along with three other company employees for allegedly overvaluing the 2007 sale of the Canadian mining company UraNim to conceal its falling market value among other shady dealings in Central Africa, according to a report by the AFP, released Saturday.
The charges list embezzlement, bribery of foreign officials, and breach of trust for the group’s conduct in the transaction and related projects in Namibia, South Africa, and the Central African Republic.
The focus of the court is on two contracts in which Areva disbursed almost US$6.9 million in 2009 and 2010 in favor of the Namibian mining group United Africa Group (UAG).
Prosecutors are also seeking answers for monthly payments of USD$10,000 in 2008 and 2009 to current Namibian President Hage Geingob while he was the Minister of Commerce and Industry.
Sébastien de Montessus also allegedly received a transfer of 750,000 euros for facilitating the sale of a luxury yacht.
This is not the first scandal Areva has been implicated in. In March, the company agreed to pay US$554million to a Finnish nuclear company for cost overruns and delays in the construction of a reactor.
I have no idea as to the current situation with regards to the Judicial Investigation in France but I am hopeful that the M&A authority and last but not least the Centamin board will not wish to be within a country mile or associated with this approach by Endeavour.
All information above in the public domain and my own private investor opinion.
Bob
Thank you Gnome, Dasut for your informed advice . I am particularly intrigued with the way END treat their Royalty commitment to Franco-Nevada and Sandstorm and the effect on actual AISC . Forgive my ignorance but am I thinking correctly that the forward financing via Royalty commitments effectively may be considered as an Off balance sheet event and forms an off balance sheet forward and ongoing debt commitment.
Always amazed at the experience and expertise of the contributors to this board. Most enlightening.
Bob
Dasut
Your sage advice appreciated . Much encouraged that you feel Centamin will have on their radar under disclosure /due diligence arrangements. If END can maintain near production ounces with 900 mm of rain (4 times average ) then perhaps an injection of their management into Centamin would be no bad thing. Not below 150 of course.
Bob
Hi goldnome.
Many thanks for your insight and advice, much appreciated and adding to my less than adequate education in these matters.
I suppose I have been searching for what if any off balance sheet liabilities END may have under the carpet. Would be interesting to know what financial contractual arrangement END have with Franco- Nevada and Sandstor
Both Companies have an impressive record and now listed on NYSE.
Bob
Hi Dasut,
Very many thanks for your experienced asessment as to my less than expert analysis of END financials and especially their Quarter 3 report. Would I be correct that in underground mine planning and implementation in a notably wet climate pump resource would be at or about the 200% level and that 400% would lead to extensive flooding and production halt at most levels. In that END guidance for the full year is 650,000 . To that end I append below the figures and explanation from their qtr 3 report.
Q Production and AISC 3-2019 vs Q2-2019 INSIGHTS
› Severe rainy season mitigated by utilization of
lower-grade stockpiles and mining the highergrade Bouéré deposit, resulting in throughput
and average grade milled remaining stable,
resulting in slight production decrease.
› Average grade milled remained stable despite
low-grade stockpiles utilized to supplement
plant feed due to the scheduled mining of
higher-grade ore.
› AISC increased mainly due to the scheduled
increase in sustaining waste capitalization,
slightly higher mining unit costs and royalty
costs, which were partially offset by lower
G&A unit costs.
OUTLOOK
› On track to meet lower-end of 2019
production guidance of 230-250koz and
expected to finish above AISC guidance of
$720-790/oz due to higher royalty costs and
the slower than planned ramp-up of the highgrade Bouéré deposit due to impact of the
severe rainy season in Q3-2019.
In that your explanation advised re utilising the rainy day resource I presume this would be a one off. and In that the Burkina Faso Hounde mine represent at circa 228000 ozs eg approx 60000 ozs reqired in the 4th quarter to meet the bottom end of guidance what a recovery operation that would be.!!!
I am emailing Centamin asking that in any due diligence that a visit to the Hounde mine to view operational conditions be of paramount importance to measure END full year performance.
The END report says that the "lady doth protest too much"to me.
Bob
5
Rebess
I am always reluctant to post on this board due to the excellence of the regular contributors However I find much merit in what you have said and which mirrors somewhat my rare previous posts as to the Institutional Investor mind set.There is much merit in what you say and is close to my opinion posted earlier on this plus excellent forum.
Institutional investors I believe would rather have a 5% gain in the current quarter than a POSSIBLE 10-15% in the succeeding quarters. Possibly to mitigate a negative current quarter. However there is an element of amusement in considering the various scenarios on offer and in this respect I have had a close look at Endeavour Financials, several times in fact and find some questions with answers not obvious to my feeble mind.
Obvious disclaimer re non GAAP with no standing under IFRS regulations. I am sure others here will also have studied these public domain documents and as little comment here not seen anything at variance with standard practice.
However the points which I struggle to quantify and which others here with hands on mining experience could no doubt advise is that they maintained AISC at $803 and production ounces in a RAINY SEASON WITH 4 times the usual annual . rainfall. They maintained ounces by " Weather mitigated by mine scheduling and utilization of stockpiles" Peter to pay Paul????
Secondly in the footnotes to Page 5 " Operating data from continuing operations" there is an item which states" 1
Includes 8,784 ounces of pre-production gold at the Ity CIL operation in Q1 2019. " What is Pre production gold and such a large amount in the o/all 180,769
2 " Revenue is net of gold stream sales to Franco-Nevada and Sandstorm. Franco-Nevada are Gold Royalty Company publicly listed and market valuation of 13 billion dollars . Sandstorm are similar but I believe sligtly smaller. At what value the gold stream agreement. Not inconsequential players in this fiasco perhaps.
Good luck all and a happy, healthy and PROSPEROUS New Year to you all.
Bob
Hi Tibbs
An NED reputation is all as to their future reputation and subsequent remuneration ( lucrative as we know) To be involved in a Company and endorsing dealings with a Company where the CEO is under judicial review by a major European State and whose Registered Office is situated in the Cayman Islands would see me heading for the hills pronto.
More to play out here.
Bob
I declined going on the list of Non Execs on the basis that any listed company would not wish to here my views on their Corporate Governance as a matter of Truth.
Following is a list of Non Execs on the Centamin Board . I leave to others to judge whether their presence has been of benefit or otherwise to Centamin. I have my own private views.
GORDON EDWARD HASLAM
Senior Independent Non-Executive Director
DIRECTOR SINCE 23 MARCH 2011
In addition to his role as...
JAMES (JIM) RUTHERFORD
Deputy Non-Executive Chairman
EFFECTIVE FROM 1 JANUARY 2020
Mr Rutherford joins Centamin as independent...
PROFESSOR IBRAHIM FAWZY
Independent Non-Executive Director
14 AUGUST 2018
Dr Fawzy has over 50 years...
DR. SALLY EYRE
Independent Non-Executive Director
10 APRIL 2019
Dr. Eyre is a mining finance...
MARK BANKES
Independent Non-Executive Director
DIRECTOR SINCE 24 FEBRUARY 2011
Mark Bankes is an international corporate...
MARK ARNESEN
Independent Non-Executive Director
DIRECTOR SINCE 24 FEBRUARY 2011
Mark Arnesen has extensive expertise in...
CATHARINE FARROW
Independent Non-Executive Director
EFFECTIVE 2 SEPTEMBER 2019
Dr. Farrow joins Centamin with more...
MARNA CLOETE
Independent Non-Executive Director
EFFECTIVE 2 SEPTEMBER 2019
Ms Cloete has greater than 15...
Centamin
Further information as to the above is publicly available on the Centamin web site.
As this has not been highlighted on this excellent board previously I also append a guide to the role of a Non Exec Board member which may be of interest to members of lesser background than I .
Obviously their tenure in this and other Non Exec Roles continuing (generally with between 3 to 5 other Companies at circa £30000+ per annum)is depends on the successful discharge of professional diligence. Study the Non Exec resignations as a good guide as to how things are expected to progress.. They are of course open to civil action of non compliance and especially with a LSE listed Company!!!!!!
You may wish to contact them direct . I may or may not as things progress.
This is my personal and private views and in no way must be construed as financial or other advice to any others on this board .
https://www.iod.com/services/information-and-advice/resources-and-factsheets/details/What-is-the-role-of-the-NonExecutive-Director
Bob
Cowichan,
In response to your request I append below my email to the Takeover and Mergers Panel.
Endeavour Mining
Registered Office
27 Hospital Road
George Town, Grand Cayman
Cayman Islands KY1-9008
+345 943 3100
+345 945 4757
Following extract from The Times of the 9th December 2019
The Frenchman behind Endeavour Mining’s audacious £1.5 billion takeover bid for Centamin is under investigation for bribery.
Sébastien de Montessus, president and chief executive of Endeavour, is being investigated over a corruption scandal at Areva, a state-owned French nuclear energy manufacturer.
Endeavour, which is listed in Toronto, is pushing for an all-share merger with Centamin, its smaller goldmining rival, which has rebuffed its approach.
French investigators are scrutinising whether Mr de Montessus, 44, bribed a public official during his time at Areva, now known as Orano, The Mail on Sunday reported. He denies the allegations.
Is it permissible that Endeavour Mining can pursue a merger with UK listed Centamin Plc while its own CEO Mr. Sébastien Montessus is undergoing a judicial investigation for bribery & fraud in France?
Surely there are rules against mergers while a key director is the subject of an international criminal probe involving bribery and fraud.
I have utmost confidence that you will exercise due professional diligence in this matter.
Tibbs,
A salutary lesson that all would be advised to consider carefully.
I can share equal experiences . Many initially try a demo trading account and that can be fun without the financial obligations. However when ones skin is in the game the stakes and decision making processes alter.
NOTE
For some reason my posts have been under martyhopkirk tag . I am not he , and have no connection other than posting a reply to him where the cross over may have occurred. I always sign off as Bob.
Have now rectified and hopefully now posting under the correct name tag.
Bob
Phone Charles Stanley and ask them when they paid Centamin Divi into clients account . Don't believe me . Fees reasonable also and platform with real time streaming. You can also speak to someone by phone with no delay.