Member Info for DASUT

Tibbs
Buchanon might be able to access the Centamin web site but like you I have tried various routes and can't get through.

ElProf - the 126p presupposes that we think Endeavours shares are worth what is being said and I don't agree and would be looking at a minimum of 10% discount when negotiating their shares as a currency against dollars/sterling or any hard currency.

I am sure that all of the Majors are following events closely but as I have said in the past the big boys don't like equal profit share such as EMRA involvement and cey wouldn't fit their core values but who knows values change, especially when/if a merger happens.
I hear about new laws in Egypt but as far as I can ascertain this is for new contracts/concessions BUT with Sawaris behind what is going on with the Endeavour bid then I am sure there will/maybe be some loop holes to exploit.

DR Chopper appreciate an opinion but can you tell us why you believe Cey is over valued as I for one am always interested in some logical thoughts that support an opinion.
I have considerable respect for Endeavour as a company and they do have a strong leadership team and even with such a strong team the results aren't overly strong.
It isn't easy mining in West Africa and not helped by such large financial burdens.

Tibbs yes currently offline why I have no idea. We will need to keep trying.

Ladies and Gentlemen,
Worth a read if you google "Taylor Dart and Centamin" Taylor has written an interesting article which provides logic to the valuation that he puts on Centamin and how Endeavours valuation falls short albeit not by as much as I would have hoped.
I find it difficult to find too much wrong with his logic albeit I have discussed with him that if he discounts Endeavours worth similarly because of political risk then Endeavours share offer is only worth $1.72 billion to Centamin shareholders.

Razor it is a seriously low bid even if we were only looking at one mine but we aren't because the asset base including the West African resource has the potential to give Centamin longevity as the latter resources are untouched.
Endeavour's resources currently are as explained by Josef politically far more risky than Centamin's albeit I would have loved to have seen an announcement laying down a development plan with some dates moving forward to develop their Ivory Coast resources.
Endeavour know that they are a high risk investment and need to spread their risk as soon as possible.
If there is a more interesting offer and would suggest this needs to be closer to £1.5/6 and if then they do take tea together I feel sure we will see one of the Majors coming in to sweeten the pot.
Who knows Tibbs we could see the £2.

All very interesting although way way undervalued first move.
I for one am not overly interested in shares in Endeavour and see Centamin as a far more interesting portfolio of ore bodies.
What I do however quite like is the leadership strength of Endeavour and any company with a sounding board as a non executive director with the know how of James Askew must have something going for it.
Will the debt carried by Endeavour dilute the earnings of Cey and impact dividends, you bet it will?
Will Cey have the nous to make an announcement relating to their assets in West Africa with a "Go Mining Plan" and 4th qtr 2019 improvements to see a significant rise in SP and up their value?
All very interesting.

What we all have to understand is that West Africa is one major area divided merely by lines on a map which are only controlled through relatively few border check points.
Movement is easy if you know how and the north of West Africa bordering the Sahara has always been somewhat dangerous.
What is going on in BF is no different to what is going on in Nigeria with Boko Haran and like BF it centres around the North East of Nigeria, I don't think this is a coincidence and would suggest will be a very similar run group if not part of the same.
Much of this will be tribal influences as West Africa is made of many different tribal groups and religious beliefs spreading across borders so the likes of Boko Haran find it easy to whip up unrest built on influences from other ethnic groups.
All mining companies have very tight security and such issues are common place and there are some seriously strong security organisations (Executive Outcome) that have grown up through such difficult zones. Angola was a case in point as is Sierra Leone/Liberia, Uganda/South Sudan .
Difficult time but Centamin is a long way from the areas that are currently being affected and doubt the group is large enough to spread too far south as if they do and aren't protected by by local villages and terrain then government forces maybe supported by ECOWAS will then become more effective.

Lloydwill also take a look at Kitco it will provide explanations relating to the Gold Price which has been influenced by good news from the US service sector.

KRSS I haven't followed POG as when I travelled Russia furthest east I went was Western Siberia and I struggled with many of the issues of old fashioned thinking using old technology and permafrost being a major issue together with the extreme cold.
Reading the current presentation I am really impressed particularly the POX which provides incredible flexibility to the processing of different ores, even includes the roaster and a bacteria (bug) plant, fascinating. POG have also spent funds on importing expensive alternatives to Russian built equipment. I can theefore see why they racked up debt with the capital outlays but seldom do we see mining companies in the position of Cey being debt free.
Political risks most definitely sanctions certainly can't help but there are very few mines that don't carry significant risks.

Tibbs,
Thanks I haven't seen that report but I am not surprised because miners bricks/dore bars with silver, copper are the norm and an average is approx 80% gold content.

We haven't had much luck filling the Non Exec Chairman and would suggest finding the CEO you describe is going to be even more difficult.

Rebess maybe the extra 6K made the difference although I think it is the underlining of the year end forecast and dividend but like you I find it pleasant but confusing.
Also helped by the pretty stable gold price.

Tibbs I think he presented what had already been written and presented by Pardey, as an Egyptian he is the face of Centamin in Egypt enough said.

What is in a name General Manager is "general". It isn't Mining Manager which would be far more specific so suggest the title is fine.

Tibbs it is really easy to be critical after the fact and yes someone should have been sounding an alarm BUT the company was coming off some extremely productive quarters and they took their eye off the ball.
It isn't about just the pit being further away as this will be a given but when combined with a fall off of grades coupled with a piece of equipment going down at the same time not sure if it is bad luck or bad management. Personally I think the latter but at the same time there was also some bad luck and also think the previous COO and other members of the team took the wrap. Should the GM be held accountable, maybe but as far as I am aware he isn't a miner and suggest his job covers other responsibilities?
Pardey should have certainly changed his presentations as it was more than once that he provided bullish forecasts and as CEO he has to take the blame albeit I am sure he didn't input all of the detail, this would have come from various individuals.

Sorry should read 99.99

It is all about logistics and yes a carry over from gold mined earlier. You need to realise that gold leaves the mine as a miners brick and isn't bullion 24 carat pure 999.9 which is what sells. So the gold is processed to determine the bullion gold content.
Interestingly I haven't read anything about any other mineral content in Cey's brick but it isn't unusual for a mine's brick containing other minerals such as copper and silver as a by product.
So as I say before I rambled on it is all about logistics.

Tibbs what a mine will do with assistance from the equipment manufacturer is select equipment based on the mine plan and allocate a lifetime cost of the equipment which will indicate the cost per tonne moved so shouldn't come as a surprise.
Obviously lower costs in the early years but as I say such costs will be known as time goes on or I maybe should say should be known.
Yes however the more hours the equipment works the more expensive they become but component rebuilds if programmed correctly is cheaper than buying new but there will come a time when new will need to be introduced.
Again as production grows additional equipment will need to be introduced.
If there is a need to extract minerals then such equipment is a necessary part of the business.
Open pit is however significantly cheaper than underground BUT higher grades will/should justify the expense.