RE: Gold price correlation20 Jul 2023 10:46
HI Ken,
There are likely many reasons why Centamin languishes in the "Spittoon" of 'The Last Chance Saloon", this is what happens when market confidence in a company is shot to pieces as is the case with Centamin!
As a long term investor of a considerable holding of over a decade I accept that there are unpredictable and unexpected events in gold mining and so I was willing to take in good faith what the management where stating and give them the benefit of the doubt when things when wrong, assuming of course that we share holders were being told the truth.
Put simply we weren't, from 2015 onwards we where deceived and misled by Andrew Pardey CEO, Yousef El Raghy in the UK and Eygptian media with what they knew where unrealistic and unsustainable guidance which could only be achieved unbeknown to us by foolhardy and bad mining practice, that is "High grading".
As you may be aware this foolhardy and bad mining practice inevitably led to the narrowly avoided catastrophe of a serious pit wall collapse which has necessitated at astronomical cost the 3-4 year major waste clearance contract involving the re-sculpting of the mine open pit and the creation of proper and fit for purpose access and egress to the very essential underground workings!
You may also be aware that the Jersey BOD claimed that they where "Simply unaware" that the open pit waste wasn't being cleared, so they may well be guilty of failing to carry out their duties with the appropriate due diligence , where complacent, ignorant, lazy or all of them!
To be fair through there where also a number of organised chaperoned visits to Sukari by the corporate analysts who gave glowing reports about the future prospects of the Sukari operation, so where then these analysts turning a blind eye to bad mining practice, or simply didn't know what they here looking at and just produced a report impress their clients?
Three years or so ago a new CEO was appointed and we were told that the company would be going through a 'Reset", that retail share holders were valued and that they would be better informed of the progress towards turning Sukari into the world class operation it should have always been, true there have been a few slick presentations, but as yet we are still awaiting some measurable proof of any of this, as yet the communications with share holders are at an all time low and in the absence of any news on when the astronomical coats of the waste clearance are likely to abate, despite the price of gold the company share price shows no sign of any invigoration upwards, quite the contrary!
Centamin seems to have been run on the basis of most "Pyramid Schemes" , that is those at the top table in Jersey have done very well, despite their lack lustre performance, whilst the those at the bottom of the pile, that's us get a few scraps of dividend and a good kick in the crotch with regard to the share price!
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