Chaarat Gold Share Discussion Threads

[casual47] 31/10/2018 10:46

Centerra q3 results out. Compared to q3 2017: Higher production, bit less profit (taking into account the various impairments and write downs), bit less cash, bit more debt. Seems solid enough. Will probably get a muted reaction, I think.

Longstop deadline has been further postponed.....

"Extended long-stop date in connection with the Strategic Agreement with the Government of the Kyrgyz Republic to January 31, 2019."

[casual47] 31/10/2018 10:11

More background info on this:



President of the Kyrgyz Mining Association Ishimbay Chunuev commented on Tazabek that Centerra plans to sell its stake in Kumtor to a Chinese company. “I have no information - this is the time. The second is that it looks like a duck.

According to him, Centerra is unprofitable to sell its stake. ======Casual47: I think this means that he thinks it would be unwise for Centerra to sell Kumtor as they are making good money from it=====

“In the place of the government, I would not change horses at the crossing. And so on the project until 2022-2023, the work will continue and 2 years for processing the involvement of warehouses. If geological exploration is now taking place as planned, then reserves will be increased, ”he said.

He also repeated that such decisions could not be taken without the permission of shareholders, including the Government of Kyrgyzstan.

[casual47] 31/10/2018 10:03

So, I think this means: They may have been approached by Shandong but they are not yet at a meaningful enough stage to involve their biggest shareholder and partner Kyrgyzaltyn?

[casual47] 31/10/2018 10:02

Centerra responds to Shandong rumours:



Google translate:

Centerra commented on the sale of shares of a Chinese company
October 31, 2018

Kyrgyzaltyn OJSC received a response from Centerra Gold Inc. the intention to sell shares of the Chinese company Shadong Gold.

According to the Kyrgyzaltyn press service, Centerra explained that the company is public and can receive various offers from third parties, including from Chinese companies. This is a common practice among public enterprises in the world, the letter says.

At the same time, Centerra officially confirmed in the letter that if any of these proposals turned out to be attractive from a financial point of view and was at least at the discussion stage, Centerra would coordinate this issue with the Government of the Kyrgyz Republic and Kyrgyzaltyn OJSC ".

“It is important to note that the decision to continue work on any proposal received from a third party is made by all shareholders of Centerra, including Kyrgyzaltyn OJSC, and not only by the management or the board of directors of the company,” Kyrgyzaltyn reports.

Earlier, individual media, citing the appeal of workers at the Kumtor deposit, reported that the leadership of Centerra is actively negotiating with the Chinese company Shadong Gold (Shandun Gold) about the sale of a share not owned by Kyrgyzstan to the Centerra company.

“Thus, if this transaction is carried out, and the Chinese company Shandun Gold will own 73.4% of Centerra, which, in turn, owns 100% of Kumtor, the field will actually come under the control of the Chinese,” the workers said. Place of Birth.

Canadian company Centerra Gold Inc. is developing the largest gold deposit in Kyrgyzstan - Kumtor. 26.5% of the shares in Centerra belong to Kyrgyzstan represented by Kyrgyzaltyn OJSC.

[casual47] 31/10/2018 09:14

I think the Q3 results for Centerra could be rather poor with potentially further bad news about the water access issue at their Canadian flagship mine. We already know that Kumtor was underperforming so far as had to get through a patch of lower grades.

I'm astonished there has been zero reaction from Centerra on the Shandong rumour given that it's all over Kyrgyz media, including TV, with even a government official being asked about it ("I know nooooothing").

Could be there's a bit of a bunker situation going on at Centerra with their CEO under pressure?

[gorsuch] 31/10/2018 09:07

I'm not sure buying the whole of Centerra would have been a good idea at all, but what a brilliant way to get your own back on the prats that wouldn't talk to you.

[retirement_fund] 31/10/2018 08:55

I agree. Releasing this RNS just before Centerra have their Q3 earnings call... There will surely be several disgruntled shareholders asking why the Centerra board won't engage. And if Chaarat could obtain funding to acquire whole of Centerra, then that is a huge vote of confidence in our BoD. Things are definitely looking up for us long term CGH shareholders and we should see a significant re-rating once trading resumes

[casual47] 31/10/2018 08:42

I don't think this is the end of it...

If they really have access to more than $1 billion funding then I can think of better prospects to buy than Centerra.....I mean, there's a reason why their shareprice is continuously hammered....

[juju44] 31/10/2018 08:39

Its hard to evaluate all the changes going on but if this is the end of the Centerra story it does reduce the expectation around Chaarat

[fishhead1] 31/10/2018 08:24

That is a surprise I wasn't expecting. RNS this morning shows the extent of the financial backing behind our company.

[catsick] 31/10/2018 07:39

Very interesting, piling on the pressure to show centerra mgmt are not doing a good job for their own shareholders...

[wilmot] 31/10/2018 07:21

Wow. And they appear to have the funds to do so.

[casual47] 31/10/2018 07:19

No coincidence they release this news today just before Centerra's results conf call?

Is this really over and out?

[casual47] 31/10/2018 07:07

Wow...Chaarat put an offer to buy all of Centerra.....

[casual47] 30/10/2018 17:07

Kyrgyz TV report on Centerra sale rumours.



I tried it with subtitles but it's a soup of words. Nobody interviewed looks happy though....

[casual47] 30/10/2018 15:01

Centerra share price established a new four year low just now.

They have their q3 results tomorrow. Wonder if any of the analysts will ask the obvious questions re. Kumtor.

Also of course the strategic agreement deadline is supposedly this Friday....

[oli12] 30/10/2018 13:58

Good news today and I agree with the great informative posts made by regulars to this BB.

[jc2706] 30/10/2018 13:13

The 'one belt - one road' initiative may be an influence here. China are the biggest creditor to Kyrgyzstan and provide loans for infrastructure development (spent on Chinese companies of course). These loans become so large that the country is effectively a vassal state.

[casual47] 30/10/2018 12:42

It seems unconscionable for the Kyrgyz to put such an import GDP contributor in the hands of China, if you add that to all the national debt, other mining licences and critical state infrastructure the Chinese have a hold over then they may as well hand over all sovereignty to them.

But then this is Kyrgyzstan....

[casual47] 30/10/2018 12:35

The rumour of Shandong sniffing around Kumtor is further reverberating around the Kyrgyz social media and yet not a word from Centerra.

As a listed company you'd think they have a duty to respond to such speculation?

What's going on?

[casual47] 30/10/2018 10:53

Russian banks own a lot of the debt of the Russian miners, so I wouldn't be surprised if there is a "friendly terms" deal to be had with e.g. VTB / Sberbank where they basically shift debt from being concentrated in the likes of Poly and onto an outfit like Chaarat, encouraging Poly to play nice and shift their asset at lowest price possible.

This scenario can be repeated for lots of other Russian miners so there should be plenty of scope for Chaarat to pick up low-hanging fruit like this.

While clearly Poly, Petropavlosk etc are listed entities so you expect them to play within the rules, there is to my mind no doubt that it is not unlikely that there might be a substantial aspect of influence from the Kremlin in terms of how flexible banks are in providing finance, perhaps sometimes to the point of not strictly 100% making financial sense for the banks themselves.

[fishhead1] 30/10/2018 10:02

I echo all the above thoughts today, things seem positive and moving in the right direction

[jc2706] 30/10/2018 09:48

One can.

I can't believe that the AGM is much of an issue for CGH but you may be right that they are hoping for some form of positive resolution to the Kumtor posturing.

Given the shareholdings of the principles and the fact that most shareholders are as activist as dead sheep, it is hardly likely that anything dramatic will happen, particularly as the share price has sprung to life since our Chairman got involved. Would anyone seriously vote down what they are proposing? The only issue is the dubious relationships involved here and that is an issue that should inspire you to vote with your feet rather than at the AGM.

Need to get the suspension removed so that the share price can reposition itself given the extraordinary changes that are taking place.

[casual47] 30/10/2018 09:28

They are still quite coy about the AGM, again the "as soon as practicably possible".

This can be because they need to sort a few things re. the Kapan deal before they can issue the AGM notice.

But....it could also be a keeping the door open for adding something Kumtor shaped to it?

One can dream!