Centamin - Chairman buys shares, follow him? Nigel Somerville writes...

Versarien & Innovate UK loan – a less feeble and more transparent response needed. Read from Lucian Miers HERE

I commented last week that I saw the sell-off in fully-listed Centamin (CEY) shares as a buying opportunity. The drop was due to an announcement from Centamin that movement had been detected and that consequently higher-grade open pit mining had been suspended at the Stage 4 West Wall at Sukari, and Q4 production is expected to come in at just 70,000 oz gold. Now it has been announced Chairman James Rutherford buying shares...

Can the new guard at Tesco live up to hopes? Chris Bailey writes HERE

Now normally I would be very cynical of this, suspecting a spoof. After all, a 20% + drop in the shares would leave the company in a difficult position if, for example, there was a placing on the way. But Centamin is awash with liquid assets: at the last report - the interims to June - it had $367 million, although there was a dividend of $69 million still to come off. But that still leaves around $300 million – hardly a red flag!

Read from Nigel Somerville, the Deputy Sheriff of AIM, HERE: Sosandar – Half Year Trading Update sounds positive, but once again there are also questions...

But the bigger point for me is that Mr Rutherford put his hand in his pocket not for a tiddly amount, but for £150,000 worth. That is a large amount regardless of his net wealth. I suggest it is a clear statement that the ground movement issue announced last week is but a temporary affair, and with a life of asset review due by year-end (I suggest next month) which will take the new issue into account, we should see the future production profile return to normal fairly short order.

Read HERE: Xaar – following recent results share price recovery, “cyber security incident”...

As such, although the big divided hike I was hoping for at the full year report is for the fairies, I suspect that a dividend will still be offered – possibly unchanged on the ones paid out so far this year, if Centamin wants to display confidence. More to the point, I see the forecast drop in production as a blip which will be quickly corrected in the new year. I still see a buying opportunity. Follow the man, as they say.

Read HERE: Kromek – full-year results include “business patterns now returning to normal”, BUT...

Filed under: Centamin, Versarien Innovate UK loan, Tesco, Sosandar, Xaar, Kromek

2020-10-07 13:26:51

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