Member Info for Cowichan

first time poster to Capital Share Chat - does anybody know the answers to the following:

1) In addition to Capital's fleet , how many of Centamin's own haul-trucks and/or excavators have been or are currently being used by Capital employees to transport 'Contract Specific Waste' from the east wall of the Sukari open pit in Egypt?

2) Does Capital bear the cost & exclusively utilize its own employees to maintain its fleet (mechanics, refueling personnel, tire maintenance crew) or is that work and cost carried out by Centamin's own maintenance crews?

3) Has Capital ever paid a Centamin, Buchanan or any third party employee (past or present) a Finders' Fee or equivalent payment in connection with the awarding of the Sukari open pit waste movement contract?

4) Was Capital the sole bidder for the Sukari waste movement contract, and if not, which other companies submitted bids?

5) As Centamin retains the right to purchase Capital's equipment post contract — has a purchase price been pre-negotiated? What are the specific monetary valuations, terms and items of equipment under consideration?

Thanks in advance for those who might provide details/answers

MENA , Ahram Online , Wednesday 27 Apr 2022
Egypt will start experimental exploration and production of gold in the area of Iqat in the Eastern Desert, Minister of Petroleum and Mineral Resources Tarek El-Molla revealed on Wednesday.

Egypt s Minister of Petroleum and Mineral Resources Tarek El-Molla in his meeting with the Australian ambassador in Cairo Glenn Miles on Wednesday (Photo : Ministry of Petroleum and Mineral Resources)

At the end of the meeting, Miles invited El-Molla and Egyptian companies to take part in the international conference for mining and resources in Melbourne, Australia, on 17-19 October.

https://english.ahram.org.eg/News/465383.aspx

Good discussion with Minister for Petroleum & Mineral Resources, HE Tariq Al-Mulla, on opportunities for Australian companies in the mining and gas markets. Looking to build on the strong private sector collaboration in both areas.

https://twitter.com/AusAmbEgy/status/1519631208216514561

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My Thoughts:
I believe this is the area where Shalateen found the million ounce deposit and has already done metallurgy test work with 95% recovery rates - average gold grades at 1.5g/t

Don't know how far it is from Sukari

Speaking at an #Iftar-event yesterday, Sisi ordered gov to seek private sector participation in state-owned assets, list army-owned firms at Egyptian stock exchange before year end, and start selling stakes of state-owned companies on stock market #Egypt

https://twitter.com/EduardCousin/status/1519294193994244096

Quarterly financials (USD) Dec 2021 Year/Year
Revenue 182.95M DOWN 3.71%
Net income 21.02M DOWN 48.2%
Diluted EPS 0.02 DOWN 33.33%
Net profit margin 11.49% DOWN 46.21%

Quarterly financials (USD) Dec 2021 Year/Year
Revenue $64.05M UP 83.35%
Net income $25.84M UP 374.27%
Diluted EPS $0.13 UP 225%
Net profit margin $40.34% UP 158.59%

For those who know the name Brian Rudd, apparently he's none too happy about the current rumors circulating regarding the awarding of Sukari's $250 million waste clearing contract

Note: DASUT , you don't need a premium membership to send a message via LinkedIn - I do it everyday and I do not have a premium membership

But I don't think you're much interested in having a friendly conversation let alone revealing your identity - even whilst you disparage my request for discretion on this legally sensitive matter. Thus I'll only ever know you as the inhospitable mizoglit on this forum. But that's okay - I wrote this LinkedIn post even for you :-)

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Does Centamin PLC's #Sukari Open Pit Gold Resource Have The Potential To Double In Size ? Detour Lake did just that shortly before being purchased by Agnico Eagle Mines Limited last year. Compare the size & expansive mineralization beneath both mines in the images below — given recent interest in exploring #Egypt by majors Barrick Gold Corporation B2Gold Corp. Harmony Gold Mining Company Limited will history repeat itself? #gold #mining #TSX #ASX #LSE #pdac2022

https://www.linkedin.com/posts/don-lawson-98619370_sukari-egypt-gold-activity-6924859969636900864-uMgz?

DASUT
If you like you can message me on LinkedIn where we can discuss your old team and any other questions with discretion

27 January 2022 - As one of our most valued customers, the Sukari Gold Mine site was incredibly busy during 2021, with the renewing of the rebuild contract and a new facility opening. There were also new machine deals and assemblies for two 6040BH Excavators, a 6020 Hydraulic Mining Shovel, five 785D Mining Trucks and two used 6040BH Excavators. New machine sales for underground saw the first R2900G Loader sold and delivered in December.

https://www.mantracgroup.com/en-eg/media/news/mantrac-egypt-eliminates-risks-at-sukari-gold-mine/

16 February 2021 - With some of the team already onsite, inspections of Sukari’s machines were carried out. They worked tirelessly to get the work done, working without regular leave to ensure we could deliver our promise on time.

The customer committed to purchasing suggested parts needed for the whole year with as well as extra parts in case of unplanned failures, while Mantrac’s ordering team raised stocks to ensure they would be delivered according to schedule.

Once the orders for the site’s needs were placed, the new customer plan was sent to the Alexandria workshop so they could prepare to receive the components from site to be repaired.

Following this, mandatory parts kits were ordered according to the planned dates for repairs to decrease components turnaround time in Alexandria. The team's forward-thinking made all the difference.

With extra parts ordered, Sukari requested extra support from Mantrac to handle the stock. With our team’s help, they were able to fully stock the warehouse, avoiding damage, lost time and lost money. And with all parts received on time, everything went to plan.

https://www.mantracgroup.com/en-eg/media/news/egyptian-product-support-team-go-for-gold/

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Centamin's relationship with its equipment supplier was unnecessarily 'complicated' by the Capital Drilling waste moving contract.

Why the $250 million contract was deemed necessary is the focus of some concern.

I hope other shareholders will seek a reply to the questions I posted earlier - simply copy and paste to an email c/o Centamin's Investor Relations if you like

I really can't wait to hear back from Centamin and/or Capital either

A reminder for those who've not been following :

October 2, 2020 / Centamin plc announces that it has detected movement in a localised area of waste material in the Sukari open pit Stage 4 West wall and has decided to immediately defer open pit mining operations in this zone.

Measures to stabilize movement in the affected area have already been implemented. In addition, the Company has commenced a detailed geotechnical assessment, which is focused on developing a plan to mine the impacted area.

2 December 2020 / Centamin plc “With the focus on improving operational flexibility at Sukari, introducing contract-mining over the next few years for waste stripping in the open pit is cost and time effective. Following a rigorous tender process, Capital was determined to be the best suited to deliver what is needed.

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A 'detailed assessment' and 'rigorous tender process' was completed in less than two months.

A lightening quick decision that cost shareholders $ 250 million over 4 years at the drop of a hat.

Compare the Doropo project - depending on when you start the clock the assessment phase will have spanned 4 to 10 years for the same expenditure $250 million (give or take)

It's particularly interesting considering management's justification in switching from contractor underground mining to owner-operator earlier this year:
1) reduced costs (saving 20%/year in time)
2) greater efficiencies
3) faster progress

All of these can be applied to why management should have opted to move the Sukari waste via an owner operator method -

Capital would not have agreed to this deal with anything less than an IRR of 20% - thus a $50 million gratuity for their services (basically signing a few Mantrac Egypt lease papers)

Of particular interest to me is the issue of a Finder's Fee — who got it, how much, and why

Though I wish the weather was good enough to plant some flowers. Still too darn cold!

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Under the terms of the Capital Waste Contract, Capital is utilising mining equipment consistent with Sukari’s current fleet. Centamin has the contractual right to purchase the Capital mining equipment at the end of the Capital Waste Contract.
This provides a number of synergies in respect of fleet maintenance during the contract term and provides flexibility for Sukari’s fleet replacement strategy and life of mine planning.

<<< -------------------------------------------------------

Dear Martin Horgan / Jamie Boyton
Questions re: #Sukari Open Pit Waste Moving Contract;

1) In addition to Capital Drilling's (Capital Limited) fleet , how many of Centamin PLC's own haul-trucks and/or excavators have been or are currently being used by Capital employees to transport 'Contract Specific Waste' from the east wall of the Sukari open pit?

2) Does Capital bear the cost & exclusively utilize its own employees to maintain its fleet (mechanics, refueling personnel, tire maintenance crew) or is that work and cost carried out by Centamin's own maintenance crews?

3) Has Capital ever paid a Centamin, Buchanan or any third party employee (past or present) a Finders' Fee or equivalent payment in connection with the awarding of the Sukari open pit waste movement contract?

4) Was Capital the sole bidder for the Sukari waste movement contract, and if not, which other companies submitted bids?

5) As Centamin retains the right to purchase Capital's equipment post contract — has a purchase price been pre-negotiated? What are the specific monetary valuations, terms and items of equipment under consideration?

These questions are material to shareholders of both companies - please address them publicly at your earliest convenience.

Sally Eyre Marna Cloete Catharine Farrow Ahmed Hamadi Tony Woolfe David Payne Stuart Thompson Jeffery Court Giles Everist Daniel Rottman Alex Davidson Michael Rawlinson Brian Rudd Bobby Morse Andre van Deventer Danie Pretorius Ryan Ferguson Oliver Back Mandy Kaiqi Li Simon Olsen Osler, Hoskin & Harcourt LLP Phillip Baruffi Ross King Jonathan Lee Doug Strong James Rutherford Ross Jerrard

https://www.linkedin.com/posts/don-lawson-98619370_cey-rnscontract-awardfinal011220pdf-activity-6924383621294284800-eqiI?

No worries —
And thanks for the explanation, we've all been there and posted things out of frustration - myself more than most !

Did you mistake me for your wife again?

" In 2019 a targeted reverse circulation drill programme was carried out on the V-Shear South prospect, 3km northeast of the Sukari processing plant. At V-Shear South, gold mineralization is hosted by a porphyry unit that has characteristics similar to the Sukari porphyry. Exploration at V-Shear South is at an early stage but the interpretation of gravity inversion modelling* shows linkages to Sukari Hill that extend beyond V-Shear North. The system is open and H1 drilling will target extensions and resource-quality of this mine-style gold mineralization.**

Five holes were drilled at the Quartz Ridge prospect, located 4.5km from the Sukari processing plant to provide material for metallurgical test work. This is a key regional target for potential production development in 2020. Infill resource and grade control drilling, in addition to metallurgical testing is budgeted for completion of a production schedule in H2 2020. *** "

Questions For Centamin Management:

* Why haven't shareholders been allowed to see the gravity inversion modeling data acquired in 2019 ? (No, this is not the same as the seismic survey data, also not shared)

** Why have shareholders not been updated on V-Shear's 2019 RC drill results and apparent 'mine-style gold mineralization porphyry' ?

*** The fact that metallurgical test work, grade control & infill drilling of 'resource' were undertaken indicates the Quartz Ridge project had moved far beyond discovery to readying for production. The plan to extract this 'resource' was in place since 2019 — well prior to Mr Horgan's appointment in April 2020

Imagine - if this plan had been carried out we'd already have higher grade satellite sources of ore feeding the plant - omitting the shortfall in ounces of 2021, 2022 & 2023 and the ridiculously high AISC we are enduring as a result

Obviously somebody was thinking far enough ahead (our old CEO Mr Pardey included?) - forecasting that the open pit wasn't going to perform as in year's prior - and put in place a contingency source of satellite ounces

So why was the above plan not carried out?

To quote a line that keeps replaying in my mind from Mark Bristow's BMO mining conference interview earlier this year "I like investing in projects before the owners realize what they have"

Well Centamin peeps - as shareholders WE are those owners and yes, we don't know what we have - because management has kept us in the dark. It's got to end.

Mr Horgan, please explain given the plan in place from 2019 (thus indicating prior knowledge of the open pit shortfall needing to be supplemented) why are we no further ahead in obtaining satellite feed from Quartz Ridge and V-Shear deposits?

info from page 47 of 2019 Annual Report: https://www.centamin.com/media/1809/cey-2019-annual-report-270520.pdf (published May 27th, 2020)

From the archives circa June 30, 2011

Quartz Ridge

Drilling continued at Quartz Ridge with results confirming continuity of an east-west trending mineralised structure approximately 1.5 km east of the Sukari process plant.

Current intercepts include:

22m 1.11g/t from surface, including
5m 3.90g/t from 17m.
11m 1.08g/t from 58m
5m 2.04g/t from 31m
4m 16.4g/t from 156m
5m 7.03g/t from 42m over a 150m strike length.

A follow up 10,000m RC program to test the strike extent of this zone will commence in the 3rd quarter followed by a resource estimate** which will be included in the overall resource estimate of the project later in the year.

V- Shear

V Shear lays approximately 1km north west of Quartz Ridge and just over a kilometre from the Sukari process facility.

Following initial soil and BLEG sampling programmes 3 RC holes (600m) were drilled during the quarter with the following significant results:

7m 21.4 g/t (from 28m)
16m 3 g/t (from 151m)

The above intercepts as well as the relationship of V Shear to the Quartz Ridge mineralisation are potentially highly significant.

As such a 20,000 m RC program is being planned for this area as well as a soil/rock chip sampling program between the two mineralised zones.

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My Thoughts:
** A resource estimate of Quartz Ridge was never provided shareholders (nor an explanation as to why it wasn't) even though a scholarly paper was written and published by an Egyptian University on Quartz Ridge specifically (outlining several aspects of the other-than-gold geology with mineral grades, too. )

Note the exploration, drilling and assay costs were all borne by Centamin shareholders - yet we are not privy to the summary conclusions, yet.

But, it's only been a decade. I wonder if some gold assay results (and the core sample data) went missing at some point? Some say the reason the security upgrade to the core data computer software (which stores the RELOGGING work of the last 18 months) was made in January was to prevent the same thing from mysteriously occurring again.

Oh - and the underground BONANZA zone we've just been hearing about at Sukari - I never got an answer from management as to just WHEN it was discovered ( or perhaps more correctly — RE-DISCOVERED from old core samples which went 'undisclosed' ) despite emails and queries submitted during the last couple of retail investor events.

Obviously the hunt is now back on for near-plant high-grade zones mineralized from surface while data from the original fieldwork has remained buried for a decade - and just what happened to shall we say 'corrupt' the data was never disclosed, and probably won't be disclosed as new employees are hired to replace old.

How convenient for the BOD none of this is addressed by banking analyst Q&A sessions

Hi DASUT,
The numerous Barrick hires of the past 24 months now work at Sukari in Egypt.

I agree that we shouldn't be surprised or put-off when Centamin attracts global talent - it's just the number of hires and the key positions they've filled at Sukari that gives me pause.

As I've said before a strategic combination of companies - given the right partner - might be sensible - but Barrick acquiring Sukari and all of Centamin's Egyptian concessions at this point would be a huge loss for long term shareholders. The value creation that one or two Sukari sized discoveries would bring is what shareholders have been waiting over a decade to see - not an underhanded Barrick acquisition at 10cents on the dollar of future valuation.

Oh look - we are now approaching TWENTY former Barrick employees working at Sukari.
The latest hired just a few days ago:

https://www.linkedin.com/in/jacobus-richard-thorne-70378666/

UG Mobile Fleet Maintenance Planner
Centamin PLC · Full-time
Apr 2022 - Present
Al Jizah, Egypt

Past experience
Senior UG Fleet Maintenance Planner
Barrick Gold Corporation
Dec 2017 to Apr 2020

Mr Horgan has said he's rather flattered so many high quality former Barrick employees are choosing to join the Centamin team.

My concern is how long there will continue to be a 'Centamin' team.

On that theme ( and to further Tibbs comment on the line-of-credit holdup until August ) I hope our money man Mr Jerrard's is not so busy with some due-diligence/NDA project that his time schedule is in disarray...

Thanks DASUT - I did catch it on the audio.
For me it wasn't much of an answer as opposed to an excuse. Also, if they already know it's reverted back to the state - I hope it doesn't take 2 years and 100 questions from shareholders to finally admit it - as was the case with Wadaraddo and Napelapara

When B2gold was recently having concession 'issues' with the state they handled the communication of the problem and reassurances discussions were ongoing with state officials exceptionally well - that level of accountability doesn't yet exist with Centamin.
Perhaps he needs to delegate better. Who is in charge of the Burkina Faso file? Let's hear from him or her directly. Surely a statement is possible. In fact it's so bad I'm quite sure I personally have better insight into what's going on in BF than some/most of the Centamin board members -

Dear Centamin,

There is no mention of the sale of #BatieWest / #Konkera gold deposit in the latest presentation.

Please let shareholders know if management has spoken with the new #BurkinaFaso Minister of Mines Jean Alphonse SOME .

Centamin's board of directors have a long history of keeping shareholders in the dark, shirking their fiduciary duties and overall losing shareholders money.

Martin Horgan - please make the changes necessary to hold the BOD to account. Give the chamber of mines head Adama SORO a call - straighten this issue out before we lose yet another multi-million ounce deposit to the board's incompetency.

James Rutherford Ross Jerrard Sally Eyre Mark Bankes Marna Cloete Catharine Farrow Hennie Faul Craig Murray John Singleton B2Gold Corp. Barrick Gold Corporation Berenberg Capital Markets BlackRock VanEck Schroders Standard Life UK Vanguard

https://www.linkedin.com/posts/don-lawson-98619370_burkina-burkina-activity-6922584326719111168-ooPk?

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The last LinkedIn post was well received, gaining 4227 views, 75 reactions (likes) and several contacts with company insiders sharing their views and insight on what-is-going-on within the company. Enlightening to say the least...

Also, not sure if there was a good reason Centamin hired a former Berenberg / Peel Hunt analyst to be their new IR go-to or 'Group Corporate Manager' whatever that means. These folks are by and large useless - judging by the questions they consistently fail to ask . When was the last time these talking heads unearthed any useful information for shareholders? Just because they rub elbows in the UK banking scene shouldn't be qualification to a cushy job.

https://www.linkedin.com/in/michael-stoner-837ba022/?originalSubdomain=uk

If it makes somebody feel any better, I present Turquoise Hill's horrid 1Q results announced yesterday;

copper production down 33% vs Q1 2021 (and down 22% vs Q4 2021)
gold production down 60% vs Q1 2021 (and down 25% vs Q4 2021)

https://financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/turquoise-hill-announces-first-quarter-2022-production-and-oyu-tolgoi-mine-and-corporate-update

The difference ? Turquoise Hill closed the day with a share price slightly up.

Can't believe I'm saying this but MrBond is correct - these clobbering's to Centamin's share price aren't based on poor fundamentals or a loss in confidence by LTH's - simply opportunistic trading.

Bottom Line: Centamin's best days are still ahead. The foundations are being laid - albeit costly in both time and money.

However I do think management can navigate these difficult times with more finesse.
Perhaps just a little bit of strategic share buybacks would put a floor under the share price - unless of course there are other forces at play content with undermining the share price. The jury is still out on that possibility.

( NB I still haven't read thru Centamin's results - figured I'd get the chat board's reaction first )

Dear Mr Horgan,
The following paragraph appeared in the last quarterly update of January 19th, 2022 ;

"In Q4, surface exploration on the 160km2 Sukari Mining Concession commenced with a prioritised 10,000m drilling programme, targeting potential satellite deposits to the Sukari processing facility. The programme is near completion and assay results are expected in Q1 2022."

Therefore, please start delivering on the expectations set from quarter to quarter and give us some results from the 10,000m drill program circa Q4 2021.

The decade-long pattern of management failing to deliver on stated outcomes needs to end.

https://tools.eurolandir.com/tools/Pressreleases/GetPressRelease/?ID=4028831&lang=en-GB&companycode=au-cey&v=

Mr Horgan said the underground fleet they bought from the contractor was nearing the end of its life-cycle which presents an opportunity to go electric when purchasing a replacement fleet in the next 18 months

One of Canada's largest underground mines is transitioning to one such electric & automated system - details here:

https://im-mining.com/tag/minetruck-automation/