Centamin Share Discussion Threads

[phillis] 05/10/2018 09:11

cas
less development grade in the underground mix is one way of massaging the results


although Pardey has just said this didnt happen!

[mattboxy] 05/10/2018 09:06

Casual out of interest if you add up the shipments that you were aware of does the figure compare well with these Q3 results. If so reporting is probably accurate and we can use reliably in Q4

[creditcrunchies] 05/10/2018 09:03

another point this company is cash rich, decent margin from low extraction costs and a massive 10% dividend yield. I'd just keep buying at these sub 90p with both hands because gold will be going higher once the Fed finish their rate cycle

[leonidas] 05/10/2018 09:00

bought below 100p we shall see........................

[casual47] 05/10/2018 08:58

Centamin is already a 24/7 operation. Not sure how they can pull out all stops far beyond what is not already done in the normal course of operations.

Anyway, what they did in September is hopefully the benchmark and starting point for what they can achieve over the next three years.

[phillis] 05/10/2018 08:55

casual

more likely someone pulled out all the stops to save their job

[casual47] 05/10/2018 08:49

Looks like some of the missing shipment news may actually have been because there were no shipments, i can't see how it tallies otherwise.

On the plus side, the news is now out and the strong performance of September indicates that a corner has turned. If they are still having problems now yet are able to produce nearly 50k oz in a month then those are not problems to worry about.

Also, the grades achieved in September must have been really, really good. The grades in today's results are averaged across the quarter so with such a lumpsided production it bodes well for grades going forward.

[cool hand kev] 05/10/2018 08:47

Back to the 90's?

[fenners66] 05/10/2018 08:41

Agreed when they lower full year guidance and then miss it with "However operational improvements have taken longer than planned to materialise;" makes people wonder what else failed to materialise ...

[bulltradept] 05/10/2018 08:27

A miss on revised production is never greeted well...

[spacedust] 05/10/2018 08:21

Surely the results isn't down to the 6% fall. Some of it is probably due to all miners and sector going down

[phillis] 05/10/2018 08:09

as I said at the time it was inadvertant

[manics] 05/10/2018 08:05

Decent call a week or two ago, Phillis. You've got a good source somewhere.

[spacedust] 05/10/2018 08:00

Higher grades. So better quality.

[phillis] 05/10/2018 07:54

A lot of absolute rubbish written in the last few days no?

[mattboxy] 05/10/2018 07:52

Sorry please explain?

[spacedust] 05/10/2018 07:51

Better quality.

[cl1nt1] 05/10/2018 07:48

dip at open which will be bought ( hopefully )

[mattboxy] 05/10/2018 07:43

Expected 145000 in Q4 So potentially running at 580000 oz annually next year Looks like we are through the problems albeit with a lowered output for this year. Will the market react to lowered year figures or current high run rate and likely upgrades for next year?

[skinny] 05/10/2018 07:41

OVERVIEW

· Gold production for Q3 was 117,720 ounces, a 27% improvement on the second quarter ("QoQ"), resulting from month on month operational improvements in the open pit and underground;

· September was a strong month with production of 48,511 ounces. However operational improvements have taken longer than planned to materialise;

· In Q4, we expect improvements to be sustained and production in the region of 145,000 ounces, resulting in a total 2018 annual production of approximately 480,000 ounces.

Open Pit

· Mining of the Stage 4 transitional zone was completed in Q3 and mining is now in the higher-grade fresh sulphide material, which will be the source of ore for at least the next three years;

· The open pit is performing slightly ahead of expectations, achieving another record quarter for ore mined and material moved (6.6Mt and 19.9Mt, respectively);

· Open pit ore grade mined has improved month on month, exiting at 0.74 g/t for September and averaging 0.64g/t in Q3; and

· Open pit average milled grade was 0.81g/t.

Underground

· Total underground ore mining of 327kt, a 13% increase QoQ, at an average mined grade of 5.18 g/t, a 12% increase QoQ due to the successful ongoing implementation of changes initiated in Q2:

o Ore mined from stoping was 199kt at 6.16 g/t

o Ore mined from development was 128kt at 3.65 g/t

o Stope to development ore split 60:40;

· Cleopatra decline development progressed 864.4 metres, delivering 70,897 tonnes of material at an average development grade of 1.56g/t:

o Produced 3,223 ounces in Q3

o Cleopatra exploration drilling continues to test the contact zones and at depth

o Assay results will be released as part of the detailed Results, to be published 1 November 2018.

Processing

· Total ore processed through the plant was 3.1Mt, at a head grade of 1.29g/t, a 31% increase QoQ; and

· Metallurgical plant recoveries for the quarter were 88.7% a 1% increase QoQ.

The Company will publish full Q3 Results on 1 November 2018. The results will be accompanied by a conference call for institutional investors and analysts at 09:00 BST (UK) on the same day.

Andrew Pardey, CEO commented:

"These results are a demonstrable operational improvement on Q2. We are extremely pleased with the operational performance from the open pit. We are through the transitional ore, grades are improving in line with the mine plan and will continue to through the fourth quarter. The underground improvements have been very encouraging and are continuing. Our focus remains on achieving optimal and consistent performance."


Conference call

A conference call will be hosted by the Company at 09.00 BST (UK) today to discuss the results and answer any questions. Where possible, please dial in 10 minutes before the start time using the details below:

Participant code: 78774386#

UK Toll: 02034281542
UK Toll Free: 08082370040

A replay will be made available on the Company website from 13.00 BST (UK) today.

[zangdook] 05/10/2018 07:35

I thought the website said Oct 9th. I was going to get some more with my HGM dividend....

[novicetrade68] 05/10/2018 07:34

Revised guidance 480k now, hm.

[spacedust] 05/10/2018 07:30

Results out!!!!

[astjgroom] 04/10/2018 22:37

I think if it inverts it's the signal of a recession not far off, rising yields also dampen the stock market, which could be the first domino...

[spacedust] 04/10/2018 21:38

there is a silver lining for gold when it comes to rising yield. Rising yield indicates an expectation of strong economy. Strong economy gives rise to inflation and gold is used as hedge against inflation so in long term, rising yields are positive for gold but in short term, investors will flock to US bond instead of gold which will put pressure on gold prices.