Member Info for mrtibbles

Should read Most of the media reported the problem for lower production was due to lower grades implying that the whole of Sukari production was of a lower grade ore There was a lack of media explanation and skimming over the details that the main reason overall ore production will be below guidance was because of two breakdowns in close succession of the LHDR Sorry about this but I was in a rush when I posted earlier! If only there was an edit faculty on this site!

Centamin Production Problems 2018 At the present I am of the opinion that we should accept that the reasons given for this set back in production are the truth. In hindsight whilst I am still as angry and frustrated about this as many other investors I think we have to accept that our management are human, like us even senior Centamin management can make mistakes and let�s face it none of us are perfect. as we would like to be! Having spoken to investor relations I think that Centamin have been more honest than many other companies would have been in similar circumstances and I believe them when they say that lessons have been learned. I also believe that the way that the financial media reported these problems made gave the MM the opportunity to punish the Centamin share price far more than justified. Most media reports was reported the problem for lower production was due to lower grades implying that the whole of Sukari production was of a lower grade ore In fact he media should have explained that the lower development grades were in the transmittal stage 4a of the over ground pit where work was actually ahead of schedule and soon due to hit 4b much higher 0.8g/t � 0.9g/t production grades which testing has confirmed will last for at least the next five years. There was a lack of media explanation and skimming over the details that the main reason overall ore production being because of two breakdowns in close succession of the LHDR and this piece of equipment is crucial to over two thirds of Sukari high grade production ore. This LHDR breakdown lost 65% production grade ore & 35% development grade ore (Note -Cey is very fortunate because the even the development dirt from drilling often carries high grade ore which is extracted a later stage) The reporting also gave the impression that this unnamed specialist equipment was unavailable. In fact the existing LHDR was repaired and operating as normal once again and an additional LHDR already organised which when it arrives will safeguard all future underground production and may even increase it. (Also another dump leach pad has been created to extract cheap oz of gold from low grade ore)

Sorry a couple of bad links ,these work better! https://uk.finance.yahoo.com/news/calculate-total-shareholder-return-tsr-082145903.html https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/a-better-way-to-understand-trs

I raised this issue and it seems the company has a policy of Total Share Holder Return https://en.wikipedia.org/wiki/Total_shareholder_return http://www.accountingverse.com/managerial-accounhttps://uk.finance.yahoo.com/news/calculate-total-shareholder-return-tsr-082145903.htmlting/responsibility-accounting/total-shareholders-return.html https://www.youtube.com/watch?v=rHWgTWwl_cQ https://www.investopedia.com/terms/t/tsr.asp

You are entitled to rant, we all are considering what has happened! I have certainly ranted on here for the very reasons you state!

Thank you Bardill, This is very useful information and confirms what I was referring to that there wasn't a robust or credible contingency plan in place! As Rebess pointed out it is the share holders who are paying the price for the this failing.and ordering the extra LHDR as a after thought to a production interruption of this magnitude! Although reassuring for the future this retrograde action is no compensation for share holders at this time who have suffered a serous devaluation of their investment! Keep the information coming. Tibbs

Stockpiles are for low grade material, averaging 0.5 g/t, to be processed at the end of the mine life. Higher grade material is put through the processing plant. Cey don't stockpile underground. Underground production drilling multiple stopes ahead of mining area. This is for many reasons, safety, process and also means if you have to stop drilling maintain or to repair the rig then you can continue mining for a period. The dump leach is to treat the oxide material mined from the open pit. This is a very low cost process to extract gold from low grade material The transitional zone Cey are currently mining from Stage 4A is being hauled to the new dump leach pad at the north of the Sukari Hill. This will be irrigated for leaching at the end of Q2. Note. Waste rock is not put on the dump leach pad as that material doesn't carry any gold mineralisation.

to have sufficient insurance in place to compensate the client (Centamin) for failing to deliver the service to an agreed standard (Service Level Agreement).

This last set back over production wouldn't have come about were it not for two critical parts of the production process suffering problems simultaneously which amplified the detrimental effect on production output! It was really bad luck for us the investor because we feel the pain more than anyone! The most frustrating part is that the pain we now suffer was avoidable had another deep hole drill been available! True normally maintenance on this essential piece of plant usually plant takes place after it has drilled a number of holes ahead of the underground production team, usually maintenance is quickly completed and by that time the production team have caught up, the drill then goes back to producing a number of holes in advance of the production team. At first glance It seems an efficient and well planned production method which has worked for a long time at Sukari producing record amount of gold ore 24/7 for over a decade. I was certainly unaware of the production methods in the underground pit until it was explained to me last week and although I accept it seems very efficient until you consider so much depends on a solitary deep hole drill! Just consider that two thirds of the Sukari output is so very dependent upon one so very essential long hole drill rig! In my working career in production engineering it was always good practice to have a spare floating operator and a stand in piece of equipment or plant for any essential production process, even if the stand plant in was lower spec or older plant that had been retained during upgrades, this ensured production could keep on track should the expected occur. What really surprised me is that the Centamin management who are usually so very meticulous and prudent in their management procedures could have allowed the Sukari operation to be so exposed to a huge break in production and the ensuing financial consequences by not having any reserve long hole drill available I appreciate that Centamin have attempted to mitigate the risk to this essential production by delegating it to a contractor Barminco who specialise in this type of mining procedure. Perhaps Centamin thought that Barminco the drilling specialist could be relied upon and left to get on with the job unless they flagged up any potential problems or asked for additional resources? But why were Barminco prepared to take the risk of only having one such very essential piece of plant available knowing how much depended on it considering the tremendous workload placed upon it? Did the Centamin management risk officer ever consider or even realise just what a risk was being taken by the contractor and what a weak link existed in the production process at Sukari? I appreciate that another LHDR has now been ordered by Centamin. However if this production loss was caused by unnecessary risk taking or unprofessional behaviour by the contactor (Barminco) then usually these type of contracts T&C require the contactor

I think most of these are just an excuse to justify the market doing what it does anyway! They really don't care a jot as long as the US & the markets prosper!

With US wages rising 2.6% per year and the unemployment rate dropping to its lowest since the DotCom Bubble peaked in 2000, May's non-farm US payrolls estimate today showed net growth of 223,000 jobs, way ahead of Wall Street's consensus forecast and some 6% greater than the last 5 years' average monthly growth. Taking to Twitter to demand the sacking of a US comedian for a using a "horrible word" to describe his daughter Ivanka, US President Donald Trump today also tweeted advance notice of the jobs number an hour before their official release. https://www.bullionvault.com/gold-news/gold-price-060120182

Fair comment Sotolo! My fear is also that Law 32 will never be ratified and will remain stuck in limbo and so in turn will our court case ? Why is it taking so long ? It was explained to me this is partly due to a huge back log of legal cases in the courts at present at present But as many of us have suspected for a long time there is a general reluctance of those in the judiciary to make a final decision on this for fear of another Alfakharany coming out of the woodwork to mount a challenge.to their decision. So it seems as some of us have already stated before Law 32 really did us no favours! and possibly for us it would have been better if it were scrapped because the general opinion is the court case would have been won!

Hi Marmot, really great to hear from you and thank you so much for your valued opinion regarding just what is going on with gold.. Your explanation of the situation is almost verbatim to that of a friend of mine who trades in gold had explained to me a few days ago, I hadn't posted his opinion because I didn't want people to think that I was biased or promoting the view of a particular individual. It was a pleasure to speak with Centamin on behalf of many of my fellow investing friends and myself and I am really glad if my report has helped to reassure holders. Obviously I don't have access to any exclusive or privileged information and anyone else who cares to contact Centmain would be treated with the same courtesy. as I was. Centamin have agreed to speak with me on a regular basis and I hope that this will enable me to keep everyone updated and also pass on any of their questions or concerns.directly to the Centamin management. I would have reported back more from my conversation with Centamin but unfortunately personal matters and appointments today have prevented me from doing so. I won't repeat the actual context of what I said to Centamin, but fellow members may rest assured that I was very honest and to the point not only about how angry many of us are, but also how very disappointed we are to be in this situation after putting our trust and our money into Centamin! In short though the post below by Dusut really sums up things perfectly and as he points out things will get better, in fact from my conversation I feel confident to say that things will certainly get very much better! Tibbs

Put the mockers on this today! Although to be fair it is a Friday! Then of course the US Non-Farm Payroll number for the month of May will be released locally on Friday the 1st of June at 14:30 Bear in mind that.enough of the monthly NFP data is already with the insiders on the Monday prior to NFP. to enable the FED plate spinning into and post the report. Not only that but the news services get the data a full 5 mins ahead of the market and this is a very �leaky� process. During his tenure as CFTC commissioner, Bart Chilton confirmed that he was trying to shut down this leak and demand the removal of all electronic devices, however, the casino operators did not like this and of course it never happened!.

Apologies referred to this type of kit incorrectly as a Long haul Drill instead of Long Hole Drill Rig! Something like this I suppose? https://www.rocktechnology.sandvik/en/products/underground-drill-rigs-and-bolters/longhole-drill-rigs/dl411-longhole-drill-rig/

True, that is the frustrating thing about all of this , especially the recent knock back!

Hi Siko, Thank you for the information! I spoke with Centamin I.R regarding this, they very aware of the figures involved and the matter certainly hasn't been forgotten, their legal team remains optimistic of a fair and satisfactory outcome for Centamin.

This idea would affect Centamin holders http://www.thisismoney.co.uk/money/news/article-5772075/Relax-Isa-rules-hike-dividend-tax-say-Government-tax-gurus.html?utm_source=cvdb&utm_medium=email&utm_campaign=MOL-TIM-Newsletter-310518

Yes severe kicked bums from Mr Pardey! Although to be fair Centamin have enough mining expertise to realise that a contractor relying in one Long Haul Drilling rig considering how essential it is to the production schedule that runs non stop.is not prudent to say the least! I hadn't realised though that the Long Haul Drilling Rig actually belonged to Centamin, nor that all underground drilling is carried out by the Australian contractor Baminco. So this second rig will be paid for by Centamin but I think most investors will agree this really is a wise and essential investment to try and ensure that constant reliable production levels are safeguarded.

HI, Sorry for the delay in answering but I am afraid that other circumstances interviened! Centamin called me at the agreed time for a very long and inforamtive chat about the present situation. I have several pages of notes on the many concerns we all have and I have yet to go through them and put all the details into some sort condensed and clear form to post on here. In a nutshell though Centamin have been taking notice of investors concerns from the various emails they have received.and are keen to a keep good dialogue going. The underground production problems have en caused by two breakdowns in close succession of the Long Haul Drilling Rig All underground drilling is carried out by a contractor "Baminco" https://www.barminco.com.au/# ) Andrew Pardey has met with Barminco and the necessary operational improvements have been put in place. Centamin have now purchased the specialist equipment (a 2nd Long Haul Rig) which is now on route to Sukari which when commissioned will minimise the risk of further underground production stoppages or may even increase future underground production capacity . The new crusher is still undergoing commissioning testing to ensure no wastage of good ore. Open pit (Egyptian crew) moving from stage 3B to 4A although as flagged up by Andrew Pardey the transitional grades are lower than expected, although tests have been completed and further in the Q3 to Q4 4A grades should bebetter than expected .0.8 ppm to 0.9 ppm, these should last for around the next five years ( This transitional production is now ahead of schedule) So it seems that the Sukari mine is certainly not running out of gold and the reduction in production although partly due to lower grades in the open pit area was in the main caused by the dependence of the underground drilling contractor Barminco on one Long Haul Drilling Rig. Had their been only one breakdown of the Long Haul Drill then production output wouldn't have suffered so badly as usually holes are drilled well in advance , this practice enabling maintenance work to be carried out on the drill whilst production continues , unfortunately the drill broke down for a second time and there was no reserve! It was also unfortunate that the open pit development was in a transitional stage of lower grades of ore and so couldn't help make up more of the underground lost production. So like everyone else I am still very angry about the dent in my portfolio value and I feel that this situation should,not have occurred! But the better news is that the new kit is on the way , bottoms have been kicked and I have every faith that the SP will improve because the present level is ridiculous all things considered. More to follow on lots of issues !