Centamin Share Discussion Threads

[skinny] 14/10/2017 10:48

Will the trend be broken.

[rrr] 14/10/2017 10:04

"As & when the CC is finally resolved"

The 2016 Financial Results (published 1 Feb 2017) says:

"Concession Agreement court case
On 30 October 2012, the Administrative Court in Egypt handed down a judgment in relation to a claim brought by, amongst others, an independent member of a previous parliament, in which he argued for the nullification of the agreement that confers on the group rights to operate in Egypt. This agreement, the Concession Agreement, was entered into between the Arab Republic of Egypt, the Egyptian Mineral Resources Authority (“EMRA”) and Centamin’s wholly owned subsidiary Pharaoh Gold Mines (“PGM”), and was approved by the People’s Assembly as Law no. 222 of 1994.
In summary that judgment states that, although the Concession Agreement itself remains valid and in force, insufficient evidence had been submitted to court in order to demonstrate that the 160km2 “exploitation lease” between PGM and EMRA had received approval from the relevant minister as required by the terms of the Concession Agreement. Accordingly, the court found that the exploitation lease in respect of the area of 160km2 was not valid although it stated that there was in existence such a lease in respect of an area of 3km2. Centamin, however, is in possession of the executed original lease documentation which clearly shows that the 160km2 exploitation lease was approved by the Minister of Petroleum and Mineral Resources. It appears that an executed original document was not supplied to the court.
Upon notification of the judgment the group took various steps to protect its ability to continue to operate the mine at Sukari. These included lodging a formal appeal before the Supreme Administrative Court on 26 November 2012. In addition, in conjunction with the formal appeal the group applied to the Supreme Administrative Court to suspend the initial decision until such time as the court was able to consider and rule on the merits of the appeal. On 20 March 2013 the court upheld this application thus suspending the initial decision and providing assurance that normal operations would be able to continue whilst the appeal process is underway.
EMRA has lodged its own appeal in relation to this matter which is supportive of the Company’s position in this matter.
Furthermore, in late December 2012, the Minister of Petroleum lodged a supporting appeal and shortly thereafter publicly indicated that, in his view, the terms of the Concession Agreement were fair and that the “exploitation” lease was valid. The Minister of Petroleum also expressed support for the investment and expertise that Centamin brings to the country. The Company believes this demonstrates the government’s commitment to its investment at Sukari and the desire to stimulate further investment in the Egyptian mining industry.
The Company has taken extensive legal advice on the merits of its appeal from a number of leading Egyptian law firms who have confirmed that the proper steps were followed with regard to the grant of the 160km2 lease. In addition, the Company has been advised that it should benefit from Law no. 32 of 2014, which came into force in April 2014 and which restricts the capacity for third parties to challenge any contractual agreement between the Egyptian government and an investor. This law, whilst in force and ratified by the new parliament, is currently under review by the Supreme Constitutional Court of Egypt. It therefore remains of the view that the appeal is based on strong legal grounds and will ultimately be successful. The appeal was stayed by the Supreme Administrative Court in June 2016 until the Supreme Constitutional Court rules on the validity of Law no. 32 of 2014. If the Supreme Constitutional Court upholds Law 32, the group is advised that it will benefit from its provisions. In the event that the Supreme Constitutional Court rules that Law no. 32 is invalid, the group remains confident that its appeal will be successful on the merits.
In the event that the appellate court fails to be persuaded of the merits of the case put forward by the group, the operations at Sukari may be adversely effected to the extent that the group’s operation exceeds the exploitation lease area of 3km2 referred to in the original court decision.
The Company remains confident that normal operations at Sukari will be maintained whilst the appeal process is underway. Centamin does not currently see the need to take the matter to a court outside of Egypt as Centamin remains of the belief that the Egyptian Court will rule in Centamin’s favour."

Does anyone know what progress there has been or is expected on Law 32?

rrr

[jfishy55] 14/10/2017 07:32

As & when the CC is finally resolved then there are plenty of prospects, including Roman era workings, within the existing licence area (E.g. Kurdeman) so no need to worry about EMRAs terms & new licences :-)

[yorgi] 13/10/2017 18:47

Looks well timed QS 😊

[flopticalcube] 13/10/2017 18:35

They also need to retain some funds for the BkF mine but progress there seems awfully slow. Hopefully they can also find another prospect near Sukari, if EMRA finally decides to come up with reasonable terms.

[juju44] 13/10/2017 14:39

But they will

[ukgeorge] 13/10/2017 14:28

the problem is they are not making bumper profits any more

[conundrum] 13/10/2017 10:51

CEY paid 13.5c final divi in March last year

So if you have patience, you should get your wish

No guarantee on the exact timing or value at this stage

[juju44] 13/10/2017 09:37

Another bumper divi would be nice and set the share price alight

[ukgeorge] 13/10/2017 09:36

I wonder if they are considering buying another asset or a takeover. they do have around $330M from memory

[juju44] 13/10/2017 09:34

Downtrend channel still intact . We need a charge through 155 to break it . Hard to see that happening without help from gold

[qs99] 12/10/2017 14:18

indeed and have added accordingly!

[yorgi] 12/10/2017 14:17

I understand your point QS but from a buy/add point of view an attractive price of course.

[qs99] 12/10/2017 14:08

broker targets just under £2, yield is decent as well IMO, but just a frustrating share price still!

[yorgi] 12/10/2017 10:36

Looking good value to me at the moment. CEY have been consistent in delivering, a well run company.

[woodhawk] 12/10/2017 10:33

I find the Halifax quite good - usually pay right on the nose. IG Index (who I otherwise prefer) are always late - usually 3-4 days but up to more than a week recently.

[troc1958] 12/10/2017 09:45

Barclays credited my account with the dividend last night. Hopefully quicker next time! Seems like the "banks" like to delay payment for their benefit!

[jfishy55] 12/10/2017 08:54

Have to agree with that - Hargreaves Lansdown paid out on the 29th. I find it shocking some people are getting excuses a fortnight later. I think I'd be looking to move if I was still waiting.

[haughtonhoney] 11/10/2017 21:28

Spoke to BestInvest. Apparently still waiting for funds from HSBC who apparently administer divi on behalf of Centamin.

[rovi70] 11/10/2017 13:44

ggp ups rapido

[rrr] 11/10/2017 13:44

Thanks Troc, that'll save me calling, much appreciated.

[troc1958] 11/10/2017 09:47

Contacted Barclays re Centamin Dividend. Assured me will be paid by end of this week (10 working days). Delay due to migration to "Smart Investor". Promised max 5 days in future

[flopticalcube] 10/10/2017 20:15

Gold at resistance. Miners might be sensing a failure to recapture $1300. Once $1300 is taken out it should be a good run to $1360 but failure to take out $1300 could result in further weakness down to low $1200's. On the positive side, silver and copper both remain very strong. Both have good track records as trend leaders for gold.

Has there been any info on the Burkina Faso/Cote D'Ivore properties? I know they were continuing to define the resource but I would have hoped for a development schedule by now.

[juju44] 10/10/2017 15:38

gap closed. These miners are not watching the metals