RE: Retail investors are regarded as naive!31 Jul 2024 20:33
Thank you Dasut,
I'm pretty certain that the trumpeted 'Bonanza grades" are almost certainly in a back pocket a very long way off, a very long way off!
Think about it Dasut, what was the point of the announcement when they aren't even sure if hey will ever materialise?
Remember in 2018 after Pardey and Youssef had been predicting 600,00oz that year then three weeks later all of a sudden they hit unexpected low grades and issued an RNS guidance cut!
Utter bullsh*t they knew about the grades in 2015 but denied it and glossed over the truth by high grading!
Unfortunately when they hit the unexpected open pit low grades in 2018 they were unable to supplement the open pit production from the underground because the solitary LHDR had imploded, likely due to running on its limits and there wasn't any contingency plan and nobody had bothered to have critical spare parts available, even more sloppy was the fact that when Centamin awarded Barminco the underground contractor they didn't insist on penalty clauses for lost production due to contactor error because it would have increased costs, rubbish it cost far more in lost production!
I rang Centamin in 2018 and asked how and why this avoidable fiasco had occurred when they are supposed to be a professional mining company who employ the best professionals in the industry.
I was told that in Eygpt its very unusual ti mine underground as all the mining is usually open pit so there isnt a pool of local underground mining professionals to call upon!
Absolutely pathetic although I'm sure that I wouldn't have received any thanks on this forum if I had posted the a transcript of the conversation or publish my subsequent emails to Andrew Pardey CEO who had lied to me!
Why my concern adbot the low grades, well simply it costs far more in every respect and is less efficient in any production process to produce the finished product in this case gold ore if you are having to work from the start with poor quality components or core materials, in this case the low quality ore !
So not only is Centamin hobbled by having only one mine it has tha additional ball and chain of low grade ore to contend with and so is very dependant on a high price of gold to remain profitable.
I remain very sceptical of anything the company tells us until we see some proof!
Tibbs
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