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Thanks for posting Dansul , sadly is more "can kicked down the road" ... 2025 and beyond.
Each year the good times seem to 2 years away. I am beginning to wonder if I will see them before I hit the end of the runway.
Well said Tony, and for me it is good to see you on HZM chat, although my holding there is a lot less than CEY.
I very much appreciate your open approach and that you share your thoughts and information on technicals, wider econmomics and even trades.
Paul I have lost faith in Hogan, so far all he has done is go after low hanging fruit in so called "cost savings and spent a lot of money on an obvious long term solution that is not yet proven to pay off.
He has shown little or no vision and done nothing strategic that positively impacts the share price, instead kick the can down the road letting shareholder take the hit and is now being deserted by institutional investors, meanwhile he and the (invisible) board become rich milking shares, salary and bonuses over endless years to come.
If Horgan truly is a leading player in the industry it is time for him to pull his finger out and deliver on share price improvement. As for the him and the board pay them in proportion to SP performance., right now and in the long term that will be the true measure of their performance.
A good and interesting post Cowichan, as a source of information you are doing a great job, thanks.
But surely all is not bad in Mali, the article does say:
"The shortfall is around 300 to 600 billion CFA. So if the facts are established, it will be a question of re-negotiating what is renegotiable and recovering what is recoverable," Sanou said on state TV. "When we go into negotiations with the companies, it is possible that we will obtain 300 to 400 billion," he added."
Or is that a smoke screen?
Overall, I like the look of Centamin shares andmy investment is currently up close to 20%. Thefact that it is trading at a penny share level withan enticing yield is positive for me, as I’m going to buy some further shares for my holdings.
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Here’s why I bought this exciting pennyshare with its 4% payout
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Here’s why I bought this exciting penny share with its 4% payout
Sumayya Mansoor 11 August 2023
One penny share I added to my holdings some time ago is Centamin (LSE: CEY). At the time, Ifelt it was an opportunity not to be missed. I still feel the same way. Here’s why.
Centamin is a mineral exploration, development, and mining business. Its primary asset is the Sukhari Gold Mine in southern Egypt. It also mines ore minerals and processes it at its own on-site plant. Furthermore, it owns potentially lucrative exploration and development assets in Burkina Faso and Cote d’Ivoire.
It is worth remembering that a penny share is one that trades for less than £1. So what’s happening with Centamin shares currently? Well, as I write, they’re trading for 91p. At this time last year, they were trading for 94p, which is a3% drop over a 12-month period. The shares issues have pulled the markets and many shares back in recent months.
Why I bought Centamin shares and would buy more
During times of economic crisis, like now, due to soaring inflation and rising interest rates, safe-haven metals like gold offer protection in an investment portfolio as the prices of these commodities rise. This can boost performance and returns for firms like Centamin.
I’m not one to invest for short-term gains. With that in mind, I’m buoyed by Centamin’s long-term growth aspirations. In its recent updates, Centamin confirmed that it is on track to produce half a million ounces of gold in 2024, its highest amount. In addition to this, there are positive signs coming from its exploratory assets, especially the one in Burkina Faso. All these things could boost future earnings and investor returns.
Moving on to the fundamentals, Centamin shares possess a dividend yield of 4%. This yield is above-average for a penny share. However, I do understand that dividends are never guaranteed. In respect of the dividends I’ve received to date, I plan on reinvesting these to buy more Centamin, or other UK shares to boost my holdings.
Next, Centamin’s valuation still looks decent tome on a price-to-earnings ratio of 16. This could tempt me to add some further shares to my holdings.
A penny share with risks but potentially lots of rewards
Despite holding Centamin shares, I am wary of some issues that could impact my investment and the business. To start with, Centamin shares and performance could be adversely impacted ifgold prices were to fall. I’m not too worried about this personally as I believe that due to the current economic outlook, gold prices could continue to rise towards record highs.
The other issue Centamin could face is that exploratory assets may not end up yielding anything of note. This would be a big blow that would most definitely impact performance as well as investor sentiment and returns.
Why not give it a rest Spoonington? There are no prizes for being a key board warrior.
Please keep on posting the good stuff of you insights, comments and thoughts on CEY but your aggression against Mr Tibbles is unbecoming and quite frankly a pain. You made your point so why not move on?
"The same is true for Centamin - expect AISC upward pressure"
How is this so Cowichan? Please kindly elaborate.
The problem the University are facing is a a legal price cap on fees, I am not aware of one as far as Centamin is concerned.
The fact of inflation is understood but is there a law restricting
Hi Sotolo and good morning. I see the hedging as a risk management action and a good one. It derisks annual income and locks in profits. Perhaps my view is influenced by the fact I am now 67 and retire at the end of this month. The last thing Martin Horgan wants is for income to fall. In saying that I have no idea how much the hedging cost.
Good point Paul and something I also raised some weeks back. Given that Horgan and the non executive directors have had a few years to get the Sukhari mine under control, in my opinion it is very much remiss of them not to be focussing on monetising the 160kms concession and also the new areas that were awarded to CEY in Egypt. With all the good effort made in development and future proofing of Sukhari mine the returns are very much a given and depend on the mine team and gold price, albeit under the leadership of Martin Horgan. However lack of positive action with regard to developing monetising the 160kms concession and also the new areas that were awarded to CEY in Egypt is letting a chance to increase the share price go by. I have the feeling Horgan and the non executive board are "kicking the can down the road" on future development instead of doing something pro-active that will to increase the share price.
I am ok with the dividend MrT it is after all a function of free cash flow.
All we need now is for Martin H having fixed the mine and identified cost savings and other initiatives to focus on increasing the ounces and adding value to the share price e.g. monetising the 160km2 and EDX.
In the words of our antipodean venerable poster "its time to get a wiggle on"
Paul, I mostly agree with what you say and in time all will be goidbut of concern is the expanding timescales and failure to take action and be innovative with regard to development and monetisation of the 160km2 and EDX.
Well said Goldnome. The prudent paying for and subsidising the reckless. Time such imprudent practices by directors and CEO's of banks was made a criminal offence with jail time, similar as was done with corporate manslaughter. I understand the need to stop a meltdown of the banking system but without some form of detterent reckless behavior will continue. Also intead of being made whole customers should not recover the full amount of their funds. Those responsible and those culpable borh banks and customers should not walk away Scot free.
Agreed and understood with thanks about the development timescale Cowichan.
The main thrust of my recent posts was to emphasize that in addition to other growth and diversification CEY has three key areas to focus on, being:
1) the existing Sukhari mine,
2) the 160km2 and
3) EDX,
Also that CEY management should get a wiggle on with the last two and treat them separately so far as management actions and reporting are concerned.
For me this will be the real test of how good Martin Horgan and the Non-Executive Directors are because at the moment I have the feeling Martin Horgan and team have put in a credible performance with regard to the existing mine but more is required in terms of the 160km2 and EDX in terms of planning, focus, timeline, KPIs and communication.
Agreed and understood with thanks about the development timescale Cowichan. The main thrust of recent posts is to emphasise CEY has three key areas for Managemnt to focus on, being the exisating Sukhari mine, the 160km2 and EDX, and that CEY managementt should get a wiggle on with the last two and treat them seperatly so far as management actions and reporting are concerned. For me this will be the real test of how good Martin Horgan and the Non-Executive Directors are. At the moment I having the feeling Martin Horgan and team have put in a credible performance with regard to the existing mine but more in terms of the 160km2 and EDX in terms of planning, focus and comunication.
Good points Cowichan. CEY developing "growth and diversification" such as Dropopo on its own or with borrowed funds may be feasible (or not depending on interest rates) but clearly developing the 160km2 and EDX is a whole different ball game. Possiblly the 160km2 could be done with a cash raise from shareholders but EDX would possiblly be better on a JV basis with someone with deep pockets e.g. the Saudis? Just my musings.