Centamin Says Chevron Has Been Told Fuel Supplies May be Resumed
2012-12-14 07:42:07.804 GMT
By Tim Barwell
Dec. 14 (Bloomberg) -- Chevron is Centamin's fuel supplier, has been notified by Egyptian General Petroleum Corporation that fuel supply to Sukari may be resumed and that no retrospective payment is currently due.
* Centamin says further update on the status of gold exports
will be provided in due course as this will determine when
operations at Sukari may resume
* NOTE: Centamin dropped 47% in London yesterday after halting
its mining operations
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To contact the editor responsible for this story:
Tim Barwell at +44-20-7073-3512 or
tbarwell@bloomberg.net
December 14, 2012
December 13, 2012
Egypt: #Centamin Operations suspended
Bad news for Centamin shareholders. Operations halted. This note from Canaccord Research
Centamin
UK and European Research | Hold | Target 40p | 13 December 2012
Basic Resources - Mining - Gold Mining
Impact on the Canaccord Genuity view
(1) We note that the group was relatively well funded at the end of September, holding cash of $125m, gold sales receivables of $27m and bullion on hand of $22m, totalling $174m or 10p per share. While there would have been major movements in these levels during Q4, given recent issues, we see this 10p level as a floor, suggesting maximum downside is around the c. 80% mark.
(2) We expect that due to the requirement for government to endeavour to sustain conditions to attract foreign investment, it is possible that the export and supply issues may be quickly resolved, but confidence in Egypt continues to edge lower.
Centamin traded at 0.43x NAV (spot, 5%) yesterday comparing to the global junior producers average of 0.66x (and intermediate producers at 0.85x). However with limited marginal buyers, we think it is possible that the share price could move down by up to 80% today, with 40% being the mid point and most likely scenario, which would represent a
Given uncertainty we downgrade to a Hold (from Spec Buy) and reduce our target price to 40p share (from 110p) by reducing our target price multiple to 0.25x from 0.65x (at peak gold price of US$2,000/oz).
December 10, 2012
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