Member Info for DASUT

Coldspy Yes David Livingstone I presume and experience haha yes at the time not sure I would have added great because back then so called sealed roads were where you didn't drive because pot holes could rip the axles off the best reinforced Defender's. Offroad was far more reliable, but things have improved but light aircraft too and from the mines became the norm for comfort, speed and also efficiencies.
Getting too and from Mwanza also improved with regular flights from Dar Es Salaam.
Stories, experiences and anecdotes travelling in Africa are easy to share because they are all pretty unique to people who have never experienced what is a fascinating diverse continent, although I should also add can be very frustrating if you are travelling for work.

Coldspy thanks for the tip I have had a look albeit early days looks quite interesting. Back in the day I have visited both locations or rather should say areas. I travelled From Kampala by Road through border crossing into Kenya, over night in Kisumu and visited a prospective mine on the northern shore of Lake Victoria. Then travelled south to Mwanza and enroute called into talk to another camp with geologists looking in the Kilmapesa area, before crossing into Tanzania signing the "visitors book" yes that was all I had to do to cross the border. Then on to North Mara then just a group of geologists working on what eventually became a mine owned by Barrick. Stayed in a safari lodge before taking a drive down to Mwanza where I would base myself at the Tilapia Hotel for visits to the now mines at Geita, Bulyanhulu, Golden Pride and the then long established Williamson Diamonds. In the Nyakafuru area I remember meeting an Australian geologist living in a tent with his Cat generator to run his little operation and the all important fridge to keep his beer cold. I am talking many years ago mid 1990's.

Cholly, we aren't suffering overly cold as now live in the west country but very wet and windy, envious of your warm weather again great to hear from you stay safe.

Cowichan I have no idea if $600 million is an awful lot of money in the context of Endeavours new mine as I have no idea what is included in the contract and also the duration of the contract.
What will the costs be at Doropo are we talking upfront costs, life of mine costs, cost per ounce, mining costs, costs per ounce, annual costs? Having not had the opportunity to discuss or see the mine plan any numbers would be pure supposition.

Good to hear from you Cholly happy new year to you and your family I have recently struggled with posting and found if I hit the back arrow and then the forward arrow the post reappears.
Agree with your post and would say to Cowichan improvements to the bottom line by any mining company is a success given what is going on in the world and currently would rather not debate what is felt might happen.
Let's wait until the 19th to hear what the guys on the ground and the board say what their achievable goals and forecasts are for 2023.
We would all like to see more but we have seen in the past what happens when overly ambitious forecasts aren't met and consistency and market credibility must be the goal for 2023.

Tibbs you need to understand that it isn't as easy as taking a trip around the pit in a 4 wheel drive vehicle and seeing large waste dumps with trucks driving through chicanes. If you look at what and where Capital are working which I understand is the East Wall it is all about making the pit larger by widening/expanding the area to be mined.
The analysts wouldn't have seen the problems that would come back to bite us but it should have been clear to the then production team/ pit bosses that they were effectively driving into a cul de sac (apologies for the simple analogy for the miners amongst us).

I think what we really need to do is forget the unfortunate history and the old guard and look to the present and hopefully the future. Forget £5 a share because as far as I can see Centamin don't have the resource in the ground or the resources to move enough ore to produce enough ounces at a profit to get anywhere near £5.
However they have achieved just over £2 so no reason why they can't get there again but only when the waste contract is over and done with because month on month millions of dollars come off the bottom line for zero return in ounces.
Horgan says the waste contract will result in a positive return question is when, at the end of the contract or during the contract, is it already contributing with ore already exposed?
I am fascinated by the current rise in the SP, OK driven somewhat by the GP but not entirely because normally will drop when GP drops but for a week now it is holding/improving through fluctuations. Certainly not complaining and hope Centamin have been able to take advantage of the healthy GP with the most recent ounces.
Now it is so important that the year end numbers presented to us on the 19th are very good and include a set of realistic numbers for 2023, that show a step up over 2022.

Pros
5) Doropo PFS bankable and gets green light.
6) Promising results from ABC
7) New underground Fleet provides excellent availability and reliable continuity of production.
8) Strong underground production improves grades
9) As waste removal opens up the pit, ore deposits exposed.
10) Consistent quarterly figures inline or better than forecast.
11) Company gains credibility with the market
12) Court Case find in favour of Centamin

goldgnome I thoroughly agree although item 2 can be overcome by employing the local dealer responsible for the equipment supply clearing customs, delivery to site and assembled ready to go.
New companies entering any new developing market is very difficult and Capital would have gone through this in their early days. As we both agree this is where they had a considerable advantage over others wishing to compete.
As a Cat dealer I was often confronted with a tender for equipment that included many items that we normally wouldn't get involved with and advised if bidding it is all or nothing.
If Cowichan has proof of wrong doing then I would suggest he writes personally to Horgan naming names but I don't see what advantage would be gained by Centamin's new team offering a sweetheart deal to Capital.
Unless there was a need to make an upfront deposit that has been misconstrued.

Interesting Mostafa is obviously a Fire Suppression specialist, he has been with Capital for 3 months and transferred from Centamin/Barminco.
Fire Suppression equipment is normally supplied by a specialist supplier that also comes with a very strong insurance to underpin a disaster to a very expensive piece of equipment.
Caterpillar don't supply fire suppression systems due to the need for the in country specialist support and the need for a very reliable insurance.
I don't know for a fact but would suggest Mostafa/Capital is underwritten by the supplier of the Fire Suppression system.

That is why I think it is a 4 year contract so not quite so dramatic. To me however it is like a Water torture a drip that just goes on and on.
Hopefully we will start to see some justification with improved production because of the ability to access multiple benches and build a continuity of ounces.
Given that Capital are now a couple of years into the contract they will have moved considerable tonnage so would be interesting to understand how much ore has already been exposed.

Tony are you saying Centamin or Egypt is in Financial difficulty ? Suggest Egypt's inflation will have a limited effect as Sukari is like an independent state with costs primarily related to the dollar not the Egyptian Pound, never the less inflation will hit AISC but hopefully somewhat less than 16%.

Spoonington you are right we should have more information on the waste removal contract but I haven't heard anyone ask the question when the opportunity arrives during a call in.
Not sure of an alternative if we accept that the strip back is necessary. Yes do it yourself but does it mean expanding the operation for a limited period? As I have said previously the numbers either way should be easy to compare.
My question isn't necessarily is it necessary to use contractors but why 4 years why not reduce duration with a larger fleet? My guess is a good deal of work was already done prior to the earth moving and cash flow played a major role in the decision.
As for exploring the 160 km concession I am not sure that they haven't already got a very good idea of the opportunities as Sami spent many years looking at the area and focused on Sukari, again another great question to ask at the next call in. Are known areas being played down until the cc is sorted I have no idea?
Having worked in West Africa I am not overly worried about Cote D'Ivoire albeit yes there is risk but unfortunately there are few regions of the world where the risks are much less. West Africa is a well established mining region and risks can be reduced and if banks are coming on board with finance then I suggest Centamin's business model must be strong.

Spoonington agree with most everything you say and have a great deal of respect for Sami as he worked extremely hard to get Sukari which was always a dream and passion of his, up and running.
I do however disagree with one major issue and that is Centamin should never had gotten into the position of having to enter into a 4 year waste stripping contract, to enable the production guys to have the flexibility to maintain continuity.
It is however history and now we have to suffer the consequences of the necessary evil.

3bear no problem understand your numbers and hope to see a few more ounces, slightly higher gold price but like you the AISC is the worry.

golgnome yes I understand and we are in agreement which is why I wanted to emphasise how relatively simple the muck shift contract is to calculate/compare and the advantage that Capital has will have made the difference.
If it had been a full on Contract Mining project I am sure the competition would have been far greater given the increased complexity and think Capital's advantage reduced considerably.
Would Capital be successful at Doropo for a full on contract mining job, Questionable?
This is where the well known and well established contractors will fight hard and the cost comparison between owner and contract becomes very close.
Already established infrastructures, start up fleets, established people and local knowledge of sub contractors, experience in both drilling and contract mining jobs, reducing risks and up front capital expenditure on equipment.

Somnamna I would like to see more detail on the waste material contract especially given the reason is to move material quickly and 4 years isn't what I call quickly. So compared to what is my question. As for transparency I am not sure that this pretty simple to understand muck shift leaves a great deal to cover up financially as it would be very easy to see any discrepancies especially when using same size trucks and loading tools.
I would be surprised if all contractors asked to bid didn't use the same software to give them the basis of their bid and likewise Centamin and the independent organisation evaluating bids also using the same software.
Mantrac/Cat will have been asked for equipment life or 4 year costs which would be the same for all bidders.
As I have said previously the costs will have been less for Capital as they already have an infrastructure and therefore economies of scale.

Tibbs As we have seen from Cowichan's input the Mining world is somewhat incestuous and mercenary with people from mining companies jumping from one to the other for improved financial rewards. mining and drilling contractors are no different. Machine equipment dealers also have their tech guys tempted to work for all of the above companies.
Early days Pharoah Gold saw people moving from Tanzania from the likes of Barrick North Mara, AngloGold Ashanti's Geita. Capital had a base in Mwanza supporting the Tanzanian mining projects so no surprise that they were introduced to Pharoah Gold.
It is also common place to see contractors moving with Mining companies particularly into new mining areas. Ashanti Goldfields move to Geita in Tanzania saw African Mining Services venture into Tanzania as Tanzania developed then other West African Contractors spread their wings.

In all my time working in the mining sector I never saw such a complex form of tendering. I guess this is because the contract isn't technically complex. As I have said previously if Centamin production team don't know their cost per tonne then they need sacking so doesn't take a lot to work out if you are being ripped off.
Capital will have had an advantage because they already had an in country infrastructure and as far as I am aware there isn't an established contractor capable of this project.

Sorry forgot to mention that I feel sure that Doropo will have featured in the business plan to the syndicate of banks for the $150 million.
I am hopeful of a good year end report.