Member Info for Cowichan

JEREMY LANGFORD
Chief Operating Officer
SINCE 23 APRIL 2019
Jeremy is an engineer with an impressive career of developing and building mines.

Most recently Jeremy was COO at Endeavour Mining and prior to that Ampella Mining. His wealth of operational and development expertise in West African gold, makes Jeremy a valued addition to the Management team and will be instrumental in steering future growth prospects, as the Company continues to unlock value from its asset portfolio

------------------------------------>> My Thoughts: As we've essentially swapped COO's with Endeavor there is little information both companies do not already know about each other. IF this deal goes ahead I for one will immediately raise multiple concerns with regulators on both *xchanges as the shareholders are the only one's who've been led down the garden path... I wouldn't rule out a class action lawsuit to boot . Unlike some I see Mr Sawiris involvement as nefarious especially given the level of corruption that has typically accompanied Egyptian deal-making for decades.

Egyptian Minister of Petroleum and Mineral Resources: We welcome Endeavor's desire to acquire Centamin

CAIRO - Egyptian Minister of Petroleum and Mineral Resources Tarek El Molla on Tuesday welcomed Canadian mining group Endeavor's willingness to take over British gold miner Centamin in a 1.47 billion pound ($ 1.89 ) El-Mulla told Reuters that his country welcomes the attraction of international companies to search for gold and mineral wealth, especially after the issuance of amendments to the mineral wealth law and near the completion of procedures for issuing the executive regulation, which will contribute to the interest and attract international

https://ara.reuters.com/article/businessNews/idARAKBN1Y729F

----------------------------------------------->> My Thoughts: What else is he supposed to say - go away miners? After all the changes to the mining laws Egypt can't be seen as unfriendly to business deals...

You raise some very valid points.

It's hard to disagree that Endeavor's management has resulted in a preferred share graph trajectory. I think if Centamin had pursued a quick development plan for it's West Africa deposits the two graphs would look quite similar.

But that would have:
- added lots of debt
- eliminated dividends
- sacrificed future growth for short term performance

I for one will never be in favor of a tie up with Endeavor. Their assets are just not very good. Simply stated Endeavor made a promise of delivering growth and they are unable to deliver unless they pick up a better set of assets on the cheap. The only way this merger will go ahead is if there has been some back room dealings. Who knows what the real reasons are behind our chairman's long departure and our CEO stepping down. Disagreements with the direction of the company and/or tie ups would be my guess. Say what you want about Andrew's ability to run the company but I have always felt he had the shareholders best interest at heart. That is probably why none of this has come to light until now.

Endeavor is desperate to steal this company's assets and I for one will encourage Centamin's board to keep the doors tightly shut. And locked.

Contact IR now and voice your opinion. One way or another...

Personally I believe this offer was rightly declined. So far our board has acted wisely, as the potential shareholder returns have always lay in development of the incredible slate of deposits we already have.

If we are allowed to proceed without interference from a hostile merger we will see our share price appreciation rival the likes of Kirkland Lake Gold.

Thank you Centamin Board - please develop our great company without shareholder value destruction a merger would cause.

Newmont (NYSE: NEM, TSX: NGT) today announced its Board of Directors has unanimously approved the authorization of a stock repurchase program for up to $1 billion of common equity to be completed in the next 12 months.

“Our share repurchase program reflects the confidence we have in our people, our operations and our balance sheet to deliver substantial value upside and returns for our shareholders,” said Tom Palmer, President and Chief Executive Officer. “Working closely with our Board of Directors, we determined that current market conditions, combined with $635 million of expected cash proceeds from the sales of Red Lake and our equity investment in Continental, create a compelling opportunity to initiate our $1 billion share buyback program over the next 12 months whilst we continue to return cash to shareholders through sustainable dividends.”

-------------------------------->> My Thoughts: Dividends are great but when a board chooses to support the company's share price with a repurchase they are in fact protecting shareholders from getting screwed by predators — like Barrick did to Randgold

FUJIAN, China, Dec. 2, 2019

Zijin Mining buys Continental Gold TSX:CNL C$1.4 billion a premium of 29% over Continental's 20-day volume-weighted average price

https://www.bnnbloomberg.ca/china-s-zijin-buys-continental-gold-in-1-37-billion-deal-1.1356134

------------------------------>> what's with all the sudden deals? you'd think the world was running out of gold...

Good to see more countries doing this.
Imagine the US or China storing their physical gold abroad — it's just not safe unless it's on a country's sovereign soils. (Russian annexation notwithstanding!)

My Thoughts: Should Chinese state owned enterprises really be allowed to operate globally as if they were a traditional corporation? Does this not raise questions of unfair trade practices, market skewing subsidies, etc? Plus, when they can no longer pay their debts is it fair for China to look the other way and allow bonds to go unpaid? Total BS if you ask me...

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Tianjin-based Tewoo Group Co. is owned by the local government and operates in a number of industries including infrastructure, logistics, mining, autos and ports, according to its website. It also has footprints in countries including the U.S., Germany, Japan and Singapore.

The trader ranked 132 in 2018’s Fortune Global 500 list, higher than many other conglomerates including service carrier China Telecommunications Corp. and financial titan Citic Group Corp. It had an annual revenue of $66.6 billion, profits of about $122 million, assets worth $38.3 billion, and more than 17,000 employees as of 2017, according to Fortune’s website.

Tewoo Group’s financial difficulties came to the fore in April when it sought debt extension from its lenders and sold copper below market rates amid a cash crunch. That month, Fitch Ratings slashed the company’s credit score by six notches in one go to B- to reflect its weak liquidity and higher-than-expected leverage....

https://www.bloomberg.com/news/articles/2019-11-26/china-faces-biggest-state-firm-offshore-debt-failure-in-20-years

Mick McMullen, (formerly of Stillwater) President, Chief Executive Officer and Director of Detour is now looking for a new job. Maybe he'll apply to the Centamin board.

https://www.bnnbloomberg.ca/video/the-upside-potential-for-soybean-on-u-s-china-trade-deal~1837992

Some analysts are questioning the move saying Kirkland Lake's recent metrics were as good as it gets and so they made a hasty purchase while their share price was still richly valued. Only time will tell...
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Merger and acquisition activity remains alive and well in the gold sector after Kirkland Lake Gold (NYSE: KL, TSX: KL) announced its plans to acquire Detour Gold (TSX: DGC) in an all shares deal.

According to the Kirkland Lake, the latest mining deal is valued at C$4.9 billion. The ************** represents a 29% premium for Detour Gold shareholders,

https://www.kitco.com/news/2019-11-25/Kirkland-Lake-to-buy-Detour-Gold-in-C-4-9-million-deal.html

might be looking to dump its operations in DRC next... country specific notes from their latest presentation;

- Various mining facilities on care and maintenance in DRC with a number of projects shelved because of the impact of the 2018 Mining Code
- The 2018 Mining Code has many problems which make investment into the DRC, under the conditions of low global growth and low commodity prices, distinctly unattractive
- One of the impacts of 2018 Mining Code is that mining operators cannot take cash out of country to pay dividends or loans
- We have to reconcile and balance the legal and policy framework in DRC against the long term commodity prices and relative attractiveness of the DRC
- Labor related regulation: increased of Social Security rates and minimum wage on a populist basis and in violation of the regulatory background within which miners operate
- Illegal settlers pose a threat to our mining schedule in established exclusion zones, this requires an urgent resolution
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No doubt Mark Bristow still believes in parts of Africa but it sure sounds like the curtain is falling on the DRC ... a shame cause they've spent hundreds of millions in development...

Look at the chart on page 15 of this Barrick presentation re: gold mine supply - total ounces mined per year is on track to decline from between 20% to more than 50% over the next ten years - that should sound alarm bells among established players... makes me think the Randgold Barrick merger was more necessity than opportunity...

https://barrick.q4cdn.com/788666289/files/presentation/2019/11/JMP-Conference-Mali_Impact-of-the-gold-price.pdf

My Thoughts: There has been a flurry of talk coming from Naguib Sawiris lately on his renewed interest in investing in Egypt — specifically the gold mining sector. Now there is a new angle to his talk, the Egyptian Wealth Fund (THARAA) supplying capital to develop gold mining in Egypt.

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Naguib Sawiris, Chairman of Orascom Investment Holding Company (OCI), has revealed an anticipated investment appetite to seize a large number of investment opportunities that will be offered through the sovereign fund in a wide range of sectors led by mining.

Sawiris added: "Of course, I am targeting the participation of the sovereign fund in the mining project in the field of gold exploration, provided that no interference in management, ie, as a financial partner only."

He stressed that the mining sector tops the order of investment priorities with the sovereign fund...
Sawiris owns one of the world's largest mining and gold exploration companies...

https://hapijournal.com/2019/11/17/%d9%86%d8%ac%d9%8a%d8%a8-%d8%b3%d8%a7%d9%88%d9%8a%d8%b1%d8%b3-%d9%85%d9%86%d9%81%d8%aa%d8%ad-%d8%b9%d9%84%d9%89-%d9%85%d8%b4%d8%a7%d8%b1%d9%83%d8%a9-%d8%a7%d9%84%d8%b5%d9%86%d8%af%d9%88%d9%82-%d8%a7/

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some background on Egypt's new wealth fund THARAA:

The strategy: THARAA will operate through three types of partnerships. The first will see it partner with private-sector investors in specific industries. The second will see it partner with other sovereign wealth funds, while the third will see it partner with the private sector on specific projects through PPP, JVs and other sub-funds, Soliman said. The fund’s strategy will see it follow a private equity-style model of investing, he added, so we can expect a flurry of M&A coming from the fund. The model will see THARAA offer stakes of variable sizes in companies and projects across industries, suggesting that the fund does not plan to hold majority stakes in all of its projects.

https://enterprise.press/stories/2019/11/13/our-exclusive-talk-with-ayman-soliman-ceo-of-tharaa-egypts-new-sovereign-wealth-fund-6236/

Something to keep in mind when assessing Centamin's 'quiet' strategy in West Africa — have a look at page 17 on the following presentation by Mako Gold. You'll notice how eager junior explorers are to obtain exploration permits right alongside major discoveries i.e. Barrick's Tongon mine concession flanked by Orca & Mako - two predatory species...

Keeping a low profile - as I believe Centamin has done in Burkina Faso - prevents unnecessary competition for assets.

https://www.makogold.com.au/uploads/7/9/1/8/79181888/2019.10.30_mako_gold-imarc_presentation-oct-2019.pdf

(MENAFN - Daily News Egypt) Head of the Canadian Chamber of Commerce in Egypt Fayez Ezz El-Din said that Canadian companies intend to establish a gold purification plant with investments of $70m.

He told Daily News Egypt that the recent passage of the mineral wealth law is encouraging international mining companies to invest in Egypt, especially Canadian companies, the most important investors in the sector.

Gold is being purified from 67% to 99.9% before entering the market.

Ezz El-Din pointed out that the plant, which will be established in two years, will work to purify gold not only in Egypt, but also in several African countries so Egypt may become a centre for the purification of crude gold.

https://menafn.com/1099278886/Canadian-companies-intend-to-establish-a-gold-purification-plant-in-Egypt-with-an-investment-of-70m

I would encourage new investors and long term holders alike to revisit the following presentation from 2017 (specifically page 51)

https://www.centamin.com/~/media/Files/C/Centamin/documents/presentations/Centamin_CMD2017_FINAL_without%20movies_2.pdf

and have a look at the proximity of resources in Burkina Faso and Cote D'Ivoire, noting the distance between ore bodies. i.e. Onieda and Napelapera are literally 5km apart (and in all likelihood future drilling will confirm direct continuity.) And Konkera is barely 18 km from Chengue.
My point is this - no mining company would sell assets (which happen to be just as richly endowed) that are directly part of the same underlying mineral source and which lie directly adjacent to one another. Rest assured Centamin has the big picture in mind as they outline the path to production in West Africa.

PS In regards to security, there are dozens of mining operations in Burkina Faso, Mali, Cote D'Ivoire, etc. - we should remember the region's future depends on their governments'' taking every action necessary to protect the lives of these workers.

I know from time to time we like to debate the merits of Centamin repurchasing shares to cancel - with some of us in favor and some of us vehemently opposed. I ran across Warren Buffett's opinion in his latest letter to shareholders. It sounds like he approves with a wise caveat - don't overpay! (I would submit that for our company, anything under 200p is a bargain to repurchase and cancel...)

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An excerpt from his letter:

'Earlier I mentioned that Berkshire will from time to time be repurchasing its own stock. Assuming that we buy at a discount to Berkshire’s intrinsic value – which certainly will be our intention – repurchases will benefit both those shareholders leaving the company and those who stay. True, the upside from repurchases is very slight for those who are leaving. That’s because careful buying by us will minimize any impact on Berkshire’s stock price. Nevertheless, there is some benefit to sellers in having an extra buyer in the market. For continuing shareholders, the advantage is obvious: If the market prices a departing partner’s interest at, say, 90¢ on the dollar, continuing shareholders reap an increase in per-share intrinsic value with every repurchase by the company. Obviously, repurchases should be price-sensitive: Blindly buying an overpriced stock is value destructive, a fact lost on many promotional or ever-optimistic CEOs...'

https://www.berkshirehathaway.com/letters/2018ltr.pdf

Lots of relevant points made in the following article that could boost efficiency and valuations if the right mergers came together
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Of all the mining sectors, gold is possibly the most fragmented, and the gold industry and its investors would realize considerable benefits from consolidation. Brokerage Pollitt & Co. estimates that 50% of global iron ore and copper production comes from four and 10 companies, respectively, while 25 companies account for just 45% of total gold production. Technical talent seems to be spread thin...

An internal Resource Capital Fund study earlier this year reported that 107 mining projects that went from feasibility study through to construction were 38% over budget, on average, which indicates poor planning and engineering that could have been alleviated with more talent, and experienced engineers and planners....

The greatest potential for synergy and value creation rests among the large number of single-asset companies....

https://www.northernminer.com/commodities-markets/commentary-gold-sector-fragmentation-hurts-investors/1003811090/

I realize the danger is very real but I think there are many reasons for persevering. The gold in the ground cannot be stolen by these rebels or terrorists — call them what you will. Providing opportunities for the local population to work and develop their communities will be vital to prevent these attacks from happening in the future.

My thoughts: I wonder who are they referencing when they speak of 'several international investors' below**

Nov 2, 2019 (MENAFN - Daily News Egypt) The Ministry of Petroleum and Mineral Resources will present the executive regulations of the Mineral Wealth Law to the cabinet for ratification in November, said Tamer Abu Bakr, head of the Petroleum and Mining Industries Chamber in the Federation of Egyptian Industries (FEI) and chairperson of Quill Energy company.

He stressed that the mining sector in Egypt impatiently awaits the issuance of the law's executive regulation to clear the obstacles clouding the local market.

In an interview with Daily News Egypt, Abu Bakr said the Ministry of Petroleum is holding regular meetings to finalise the proposed executive regulations in cooperation with Enppi, international consultancy group Wood Mackenzie, and several international investors.**

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My thoughts: This is the first time I've seen an article specifically reference a mining 'tax' rate on production — and it's a 20% tax rate, sounds good**

What are the main drawbacks of the law's current executive regulations?

The current executive regulation focuses only on imposing levies, without offering incentives to attract foreign investors...

According to global energy consultancy group specialised in mining Wood Mackenzie, all states that have mining activity collect no more than 16% levy or 20% tax of the production value.** Egypt should not be an exception.

Many foreign mineral exploration companies are awaiting the new executive regulations to decide on investing in Egypt.

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My thoughts: Are the 'trained workers' the EMRA speaks of those students which Centamin has given on the job training?**

Do the amendments include raising the efficiency of the sector's labour?

Certainly, as focusing on the law and its executive regulations without considering the human factor in the sector would be a waste of effort.

The EMRA has contracted with Enppi to train 480 employees over several phases. In the first phase, the company trained about 180 workers.**

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My thoughts: Yet more talk of Naguib Sawiris entering Egypt mining...

What do you think of businessperson Naguib Sawiris' announcement about his willingness to invest in gold exploration in Egypt?

It is a very good and positive sign for the sector. It will also reassure local and foreign investors because Sawiris is currently one of the largest investors in the world's gold sector.

https://menafn.com/1099211185/Egypt--Petroleum-Ministry-to-present-Mineral-Wealth-Laws-executive-regulations-to-cabinet-for-ratification-in-November