Centamin Share Discussion Threads

[action] 18/8/2018 09:39

Buy Gold and not Gold shares?

[jimbowen30] 18/8/2018 09:08

Pimco view on gold

[ukgeorge] 17/8/2018 16:42

I've not topped up here since about 110p, but have bought some petra diamonds which have been on sale this week. Worth a look.

[chipperfrd] 17/8/2018 16:37

ditto. Another position.

[juju44] 17/8/2018 15:40

Grabbed a few myself but I wouldn't bet on it being the bottom - hopefully

[skinny] 17/8/2018 15:21

I've had a small buy @102.40p - I hold @63.40p from 2012.

[juju44] 17/8/2018 15:14

with this capitulation it might be approaching BUY time

[ukgeorge] 17/8/2018 13:50

So as sukari is in the middle of nowhere the mine (correct me if I'm wrong) is run of gen sets which use heavy fuel oil (basically oil). This is to provide electricity to the process plant, one of the main uses is the ball mill a huge amount of energy is used in crushing the ore. Also as you mention the underground mine needs power for lighting possibly cooling, possibly for the ug machines.

The great big trucks also likely run of diesel and the explosives in the pit use diesel. So the mine has a lot of costs that are derived from oil.

In one of their presentations they probably have it or in a technical report which can be found on sedar.com

So a solar project may be a viable alternative to lower the mines dependence on oil. So the FS will hopefully be a nice surprise, although will be a capital cost.

Charles agree time to turn the PC off.

[rrr] 17/8/2018 13:07

Thanks for good recent posts.

My understanding is limited of how mining uses energy. It must include vehicles (diesel?), drilling kit, subsequent processing, as well as (for underground mining) ventilation, pumping, hoists and lighting. I wonder where most of the power is used at Sukari (pit and underground)? How usefully could a switch to solar be made?

[charles clore] 17/8/2018 13:02

Best thing to do imho (if you are still a believer in gold stocks) is shut down the pc AND COME BACK IN A MONTH'S TIME.

[ukgeorge] 17/8/2018 11:19

On a side note I wonder if installing a load of solar power has been considered at sukari.

just googled (it is)

Sukari solar project feasibility study expected in H2 2018

It will be interesting to see what sort of cost savings can be made.

Roll on the FS coming out.

[ukgeorge] 17/8/2018 11:18

Maybe in the 70's -80's I don't buy that argument any more. The oil gold ratio also has been pretty useless as a gauge of the outlook for gold. Also with one of the biggest open pit mines globally it does not help centamin.

[dstorey1] 17/8/2018 11:10

A high oil price is good for gold. High oil feeds price inflation and gold appreciates as a counter hedge. But since we no longer have true market mechanisms prices go where the keyboard brigade want them too.

[ukgeorge] 17/8/2018 10:57

To summarise

higher IR in US, IR maintained at nothing in japan, eu, uk = strong dollar, gold demand seasonally weak in India, China buying phones and holidays, gold production still growing. Equities, housing flying. Opportunity cost of holding gold growing. High oil prices impacting costs here combined with low grade area. Perfect sh1t storm.

[lodgeview] 17/8/2018 10:41

Losing a fortune here. Day after day of ref ffs. What the f is going on here!?

[astjgroom] 17/8/2018 09:46

I've read there has to be complete capitulation before it's contrarian, fwiw. At least sept is a stronger month (sometimes) for gold.

[astjgroom] 17/8/2018 08:55

Just have to ride out trump n his dollar, unforeseen, lost a fortune but I believe in the market fundamentals of debt. Days, weeks, hopefully no longer.

[tsmith2] 17/8/2018 08:46

Will they try to take this below £1 today?

[ukgeorge] 17/8/2018 08:45

My luck is so bad that if I bought a cemetery, people would stop dying.

- Rodney Dangerfield

This is what it feels like in the gold sector :)

[juju44] 17/8/2018 08:39

Capitulation rules for now

[jimbowen30] 16/8/2018 09:26

UKG - anything is possible but on a 1-2 year view, quality precious metal stocks like CEY look a bargain. However, anything can happen in the short term and it would help if the gold price would stabilise or rally. Medium term, I can only see gold rising in price given the rising debt levels around the world.

[ukgeorge] 16/8/2018 09:18

It certainly would. Lets hope we don't get the opportunity. I'm holding on.