Member Info for DASUT

This is after continued dialogue as requested to clarify ambiguity of the word currently : -

There is no ongoing dispute or claim by the Egyptian Government or EMRA for US$100 million. 

If anyone can provide any source / evidence of the claim we will investigate, at present we have been unable to identify any related articles in the Canadian Mining Journal.

Have a good weekend. 

Best,

Richard  

This is the first message: -

Thanks for reaching out.

 

We’re unaware of any Canadian Mining Journal articles relating to the below, if you can direct us to the articles we will investigate.

 

We maintain an open and cooperative relationship with our stakeholders in Egypt, we can confirm that there is currently no US$100 million payment due to the Egyptian government/EMRA.

 

With the second point we can also confirm that the Egyptian Central bank does not owe us US$100m for gold purchases. To provide some background, all of Sukari’s gold is both purchased in USD and refined by MKS PAMP in Switzerland.

 

Finally, upon completion of contracted volumes by Capital Ltd if there is necessity or benefit in retaining the additional fleet we will look to do so.  

 

Best,

 

Richard

 

Richard Foy

Corporate Analyst

Richard.Foy@centaminplc.com  |  www.centamin.com

Cowichan can you please also let me know the source of the rumour so that I can share with Centamin?

Tibbs I hope my continued dialogue allays some of your fears. As for BOD not buying shares I can't comment as I don't know their individual financial positions. Yes they earn way above average but this doesn't mean they have liquidity.

Yes the SP is languishing and it isn't helped by unsubstantiated rumours and a lemming approach.

Question where do you feel the SP should be and was the high of £2 above where it should have been at that time?

I believe the war in Gazza and the instability of the region together with currently being a one trick pony is the reason for a low SP. Will the additional resource in Cote D'Ivoire provide some impetus I really don't know but it certainly should because whilst it also carry's Political Risk it at the same time spreads the risk. An additional 150/200 thousand ounces per annum with GP where it is should boost the SP.

I continued my dialogue with Centamin and am advised as follow;-

"There is no ongoing dispute or claim by the Egyptian Government or EMRA for US$100 million. 

If anyone can provide any source / evidence of the claim we will investigate, at present we have been unable to identify any related articles in the Canadian Mining Journal or any other source".

I also questioned the possibility of funds owed by the Egyptian Central Bank and the response is as follows:-

All gold from Sukari is sold to the refiner, MKS PAMP. The Egyptian Central Bank purchase gold from MKS PAMP and we effectively act as a broker for them for their gold purchases with all purchases paid in advance. Therefore no multi million dollar outstanding balance can accrue, there can sometimes be small FX true ups but these are typically less than US$50k and settled once the gold is purchased. 

As a listed company we publish our liquidity position quarterly and any overdue amount would be visible as accounts receivable amount. We typically close a period with $15 - $30m in ‘gold sales receivable’ (depending on sales and price) this is payment due from the refiner MKS PAMP not the Egyptian Central Bank

Tibbs you obviously aren't interested in what is answered by the company you invest in, only the so far unsubstantiated rumours.

So why stay invested because it seems nothing that Centamin does, achieves or says is good enough for you?

Egypt is what it is and the alternative is?

Rebess yes I thoroughly understand your worries but I haven't been able to substantiate any of the worrying rumours. So far nobody can point me to a report from anywhere that this is actually an issue.

Tibbs why would EMRA just want to take $100 million and kill what is a golden goose after all they stand to get this sum year in year out as part of their share of profit. There has been no capital outlay and in addition to their 50% plus plus, the mine generates considerable funds for the local economy through employment, goods and services etc.

Sukari is almost a university for the Mining Sector with local people learning skills for the future development of the mining sector, which has considerable potential. An EMRA dispute with Centamin/Pharoah gold would ruin any future International Investments of which Egypt is in desperate need.

I also don't think you can under estimate the power of a lobby that is growing amongst the mining fraternity as they develop in country relationships and eventually form a Chamber of Mining.

Rebess I did get a response from Centamin about monies owed by the Central Bank and they said they don't owe $100 million but I have asked them to clarify their response as it was a little less straight forward. I will get back to you when I get a response that I fully understand.

I was totally confused with how and why there could be a $100 million deficit between the two partners so I asked Centamin for a response and the response is:-

"We maintain an open and cooperative relationship with our stakeholders in Egypt, we can confirm that there is currently no US$100 million payment due to the Egyptian government/EMRA."

I could do no more but ask and suggest this is a pretty blunt and precise response to what was a direct and blunt question.

Tibbs what has been going on for years ? What is the $100 million supposed to be for? I don't recall anything mentioned in any reports from Centamin so who reported it and based on what? As I say $100 million is a serious number of ounces less costs then divided by 2 if it is after the 50% actually kicked in.

Mhenderson, many thanks can you advise any detail for the reasoning behind the claim?

Tibbs you thanked Cowichan for his introduction of this Project so suggest you read his initial post in full and this will explain why I questioned your reference to our ignorance.

The biggest problem here is the local villagers know nothing better and it has been a way of life for many years. I have seen this first hand when stopping to look at an area that is to be developed by a mining company. A child accepting water from us and then offering me a small amount of gold as payment. No I didn't accept it! Yes I felt humbled and helpless BUT several months later the villages were rioting because they thought they would lose their jobs with the development of a modern mine.

Obviously villagers were paid for the land and the disruption, however they were right about losing their way of life because the mine has now closed and jobs are scarce and there is no longer gold to be mined. Many of the younger people have migrated to other mines but for how long and then what happens.

I have fallen into the trap myself thinking the rural community needs to help to improve their standard of life but it is always compared with what we think is right. Corruption isn't self taught it is imported because they didn't know corruption before outside involvement because they didn't have the need.

Yes we can try to help like in Sierra Leone when I heard the charities brought clothes to the markets to generate some impetus into the economy and nearly destroyed the tailoring, sewing local clothes making businesses.

Easy to sit outside and say improvements are necessary and I thoroughly agree but banning without offering alternatives doesn't work.

Developing countries will always struggle to bring about what we feel are necessary changes because of local influences and providing alternative methods of earning enough to feed themselves.

I met an old farmer and his wife from Dorset living in a village in Tanzania helping them to develop more efficient farming methods and experimenting with different seeds etc to overcome the soil conditions and pests. They explained importing and giving away food is short term thinking.

The World Bank Projects in Nigeria called operation feed the nation. This saw numerous large agricultural projects where we were directly involved through our contacts in educating local Nigerian institutions in ways of large agricultural projects. All great but the funding only covered the costs of importing equipment and so the projects only survived for as long as they kept the machines running. There are many cannibalised pieces of machinery dotted around the developing world because they lacked the funds to maintain the equipment.

Charities donating funds rather than mosquito nets or hand tools or education, the funds get spent elsewhere.

So I applaud the Egyptian Strategic Gold Extraction Project and sincerely hope it works.

Tibbs so you are thanking Cowichan for enlightening us to the artisanal miners for which we are ignorant not the writing on the wall and sell statement?

I have also been looking for some clue as to the $100 million which if Centamin owes this sort of money then compared with EMRA profit share for 2023 of $112 million (ESTMA Report) we are looking at a profit share of almost double and one hell of a lot of lost production. Also as I understand it Central Bank pays Centamin in Egyptian Pounds so maybe 100 million Egyptian Pounds so just over $2 million. Hopefully Cowichan can enlighten us.

3bear I am not necessarily rising to Cowichan and Tibbs but the words sell and ignorance are somewhat important and if there is something that we are ignorant about then there has to be an explanation. I just don't understand the relationship to providing some structure and hopefully some controls to artisanal mining issues in Dahmit, will create an impact on Sukari that brings about a recommendation to sell our investments.

Cowichan, I asked you and Tibbs to explain I am not making any criticism of your posts merely an explanation so that we can all better understand your very serious recommendation to sell.

Cowichan, Tibbs grateful if you can explain in a little more detail your recommendation to sell and ignorance amongst us shareholders because I understand the goals in the article is to bring some control and structure to the artisanal mining sector in Dahmit. I believe we are effectively talking a total project value of $7.5 million inclusive of infrastructure which will provide some worthwhile but relatively small production aids for the artisanal miners.

I am not clear of the writing on the wall.

Mr Bond I didn't go into the detail of the repair but would normally replace all bolts if a few have broken. Plastic top is new one on me.

Certainly saved considerable down time and money.