Centamin - a gold buy whilst its shares are cheap says Gary Newman

Why has Bidstack apparently breached AIM Rules 10 & 11 with impunity? Letter to AIM Regulation HERE

Centamin (CEY) has always been one of my favourite gold producers and, although I may not be as bullish on gold as fellow ShareProphets writer Nigel Somerville, I still expect the metal to do well over the next few years. This Egyptian gold miner has had its share of problems over the past couple of years and it has recently encountered some lower grade areas at its Sukari mine that it has had to work through. Even though that was largely part of the mine plan, the market hasn’t generally responded well to it. Having made a very strong recovery and seen its shares hit a high of over 232p last August, its fortunes have been on the wane since and took a further dip after the latest production report for Q1 2021, as well as suffering from the impact of falling gold prices, which are now well off of the highs of last year.

How am I feeling about ITV? Chris Bailey writes HERE

I personally think we could be about to see gold show some sort of recovery though, even if it doesn’t go on to challenge the previous highs, as whilst it has pulled back on more encouraging signs and optimism about the equity markets and the general economy going forwards, this euphoria seems to be waning and the impacts of Covid definitely haven’t gone away and are likely to be felt for a number of years. Just how much of an impact they have though, given that all the major economic powers were badly affected and have had to take on huge amounts of extra debt, remains to be seen. Inflation in particular is seen as an issue and whilst governments claim that they will be able to control that, I remain to be convinced that they have much that they can do, and the soaring prices of many commodities - including lumbar and soy beans - will add to that inflationary effect. On that basis I think it would be silly not to have at least some gold (or silver given the two generally move in tandem) in your portfolio, and the easiest way to gain exposure to price movements in that is by holding shares in an unhedged gold miner, which generally offers a leveraged play on movements in the commodity price. The latest update from Centamin showed that whilst production for the three months was down by 17% on the same quarter in 2020, it had risen by 53% as compared to the previous quarter, and at 104,000oz was in line with guidance and expectations.

Iconic Labs and the ongoing downfall of toxic Dave Sefton. Read from Tom Winnifrith HERE

The figures show that grades are still far lower than they have been previously - 31% lower at the main open pit operation as compared to a year ago - but I have no reason to suspect that they won’t improve again in the future, and most mines go through phases of working through lower grade areas at times. The company still managed to generate $9.4 million of free cash flow in Q1, after paying out $37 million in capex, plus $27.4 million to the Egyptian government for royalties and profit share. The balance sheet also looks strong here, with over $330 million in net cash (prior to paying out $34.7 million in dividends), and it still has plenty of gold left in the ground to extract, with the current reserves supporting another 12 years of life at 450,000 to 500,000oz per annum. The company recently updated on some changes to its model, with around 750,000oz of existing reserves now unlikely to be mined – these were earmarked for the end of the life of the open pit and at a very high cash cost per ounce. Instead the company is looking at utilising other more attractive areas of the mine with resources that can possibly be mined more economically, and sooner. The new model takes a base gold price of $1,350/oz and gives roughly the same mine life overall.

Why Going Dutch Might Not Be Such a Bad Idea - for the Time Being says Malcolm Stacey HERE

Whilst most of the proven and probable reserves are contained in the open pit part of the mine there is still plenty of potential from the expansion of the underground operations in the future. So, the company should continue to do well both from its mine plan, given the annual production forecast, as well as the potential to convert more resources into reserves over the coming years, as long as gold also stays strong. Costs have been rising, but even still AISC is still only around $1,036/oz, and I would expect to see that improve as and when the company works through some higher grade zones. Financially the company should also carry on doing well, having generated a net profit of $155 million during 2020, resulting in EPS of $0.135 (or roughly 10p per share) versus the current share price of around 107p. The dividend yield also looks very attractive – depending on whether this year follows a similar pattern to 2020 – and the company paid out $0.15/share last year, equating to a yield of roughly 10% at the current share price. So, if you are looking for some exposure to gold, and a miner which to me looks to be offering good value at the current share price, then I would definitely suggest Centamin as one to buy.

Tom Winnifrith Mossad Agent – exposed again, drat cover blown! Read HERE

Filed under: Centamin, Bidstack, ITV, Iconic Labs, Dave Sefton, Malcolm Stacey, Tom Winnifrith

Tandem Group - positive interims & outlook...

09/24/2021

PZ Cussons - a bad day Buy suggests Chris Bailey...

09/23/2021

Touchstar - interims & expects full-year ahead of expectations, Buy says HotStockRockets...

09/22/2021

Kier Group will undoubtedly like more government spending says Chris Bailey...

09/21/2021

Jadestone Energy - interims, production and cash flow growth to come...

09/20/2021

B.P. Marsh & Partners - half-year trading update, reasons for confidence...

09/17/2021

AltynGold - interims, results of capex look promising...

09/16/2021

Horizonte Minerals - project funding nearing a conclusion. Buy says Gary Newman...

09/15/2021

Wishbone Gold - further step to exploration progress. An update from HotStockRockets...

09/14/2021

Gold & Bluebird Merchant Ventures a buy? Nigel Somerville writes...

09/13/2021

Asiamet Resources - drilling update highlights further potential, Buy...

09/10/2021

CMC Markets - buy the recent weakness? Gary Newman reviews...

09/09/2021

Still a Headlam lover post its first half numbers says Chris Bailey

09/08/2021

EnQuest - interims, some production disappointment but still clear value potential?...

09/07/2021

Jadestone Energy - long-term attractions from this successful share tip?...

09/06/2021

Essentra - further recovery upside...

09/03/2021

Barclays - acquisition news. Still two quid & out? Chris Bailey reviews...

09/02/2021

Polymetal - value & growth potential? Gary Newman writes...

09/01/2021

Kefi Gold & Copper - more positive news considers HotStockRockets...

08/31/2021

Kefi Gold & Copper - Tulu Kapi funding update. Positive but how much?...

08/27/2021

Touchstone Exploration - Q2 update, remains a Buy says HotStockRockets...

08/26/2021

Anglo Asian Mining - Zafar maiden JORC Mineral Resource adds to potential

08/25/2021

Ibstock - based on broader issues than the Sunday press suggested, but a buy says Chris Bailey

08/24/2021

SkinBioTherapeutics - Business Update, high margin profit potential moving closer...

08/23/2021

OptiBiotix Health - extends Seed Health territories. Strong Buy...

08/20/2021

Jubilee Metals - positive production and prices says Gary Newman...

08/19/2021

BP - Q2 2021 results, creating value now & for the future?...

08/18/2021

When the FTSE 100 dumps next, have a look at Prudential says Chris Bailey

08/17/2021

Empresaria - longer-term upside, but what about the short-term? A review from HotStockRockets...

08/16/2021

Seed Innovations - a buy again? A review from HotStockRockets...

08/13/2021

Ariana Resources - more drilling results & time to buy more? Nigel Somerville writes...

08/12/2021

Still a Rolls-Royce believer says Chris Bailey...

08/11/2021

Gold and gold stocks - what is ahead? Nigel Somerville reviews...

08/10/2021

OptiBiotix Health - shares up on trading & commercial update, much further to go...

08/09/2021

Impellam - half-year recovery but more to come...

08/06/2021

Empresaria - half-year trading update, recovery building says HotStockRockets

08/05/2021

Johnson Matthey - still excited about prospects writes Chris Bailey...

08/04/2021

Rio Tinto - the story remains so much more than just cultural heritage says Chris Bailey

08/03/2021

Metals Exploration - Q2 challenges but a better outlook considers HotStockRockets

08/02/2021

Castillo Copper - further copper intersections & visible mineralisation, Buy

07/30/2021

British American Tobacco shares continue to offer attractive total return hopes says Chris Bailey

07/29/2021

Reckitt - recent share price decline too severe? Chris Bailey reviews...

07/28/2021

Centamin - remains a buy following Q2 report says Nigel Somerville

07/27/2021

Union Jack Oil - West Newton update, clear upcoming catalysts...

07/26/2021

Bluebird Merchant Ventures - operational update shows progress is being made, Buy...

07/23/2021

Saga offers interesting exposure to the travel industry bouncing back considers Gary Newman

07/22/2021

easyJet - ten quid or more share price again by the end of the year? Chris Bailey writes...

07/21/2021

Headlam Group - a recovery buy?...

07/20/2021

Burberry - chav challenges? Chris Bailey reviews...

07/19/2021

Orcadian Energy - a newly-listed AIM oiler Buy suggests Peter Brailey...

07/16/2021

Kosmos Energy - production & share price upside potential says Gary Newman...

07/15/2021

Cairn Energy - a lot to like at this price? Gary Newman reviews...

07/14/2021

DS Smith - further recovery & structural growth potential following full-year results?...

07/13/2021

GlaxoSmithKline - a recovery buy...

07/12/2021

Wm Morrison - recommended offer, but is there still more to come?

07/09/2021

Pick and choose your stocks - and if you need to houses - carefully says Chris Bailey...

07/08/2021

After Wm Morrison, J Sainsbury next? Chris Bailey writes...

07/07/2021

I3 Energy has turned things around - plenty of further potential considers Gary Newman...

07/06/2021

AEX Gold - Nalunaq and exploration update, Buy...

07/05/2021

Impellam Group - a recovery buy suggest Tom Winnifrith & Steve Moore...

07/02/2021

MyHealthChecked - acquisition, building a business of sustainable scale?...

07/01/2021

Burberry CEO deciding to leave a problem? Chris Bailey reviews...

06/30/2021

GlaxoSmithKline - a buy despite the unexcitable CEO? Chris Bailey writes...

06/29/2021

Kefi Gold & Copper - Ethiopia election operational update, Buy...

06/28/2021

Kier - open offer result following subsidiary sale, recovery buy?...

06/25/2021

Ariana Resources - more very positive drilling results. Buy says Nigel Somerville...

06/24/2021

DS Smith - strange name but a great company says Chris Bailey...

06/23/2021

Horizonte Minerals - short-term delay largely irrelevant. Buy says Gary Newman...

06/22/2021

Empresaria - a summer of positive macro-economic tailwinds ahead? From HotStockRockets...

06/21/2021

Pharos Energy - oil discovery and further potential catalysts says HotStockRockets...

06/18/2021

B.P. Marsh & Partners - full-year results, recovery opportunities...

06/17/2021

Serica Energy - plenty to make me think that it will continue to do very well says Gary Newman

06/16/2021

EnQuest - new debt facility, recovery buy says HotStockRockets

06/15/2021

Kefi Gold & Copper - still a risk-reward buy following executive bonus plan victory for investors...

06/14/2021

Asiamet Resources - progressing several key workstreams. Buy says HotStockRockets...

06/11/2021

British American Tobacco - positive pre-close update. Remains a Buy says Chris Bailey...

06/10/2021

Reckitt to sell a business in China but still loves the emerging markets. Chris Bailey writes...

06/09/2021

Bushveld Minerals - vanadium about to enter an up-cycle? Gary Newman writes...

06/08/2021

Anglo Asian Mining - how pleasing and exciting the results announcement?...

06/07/2021

SkinBioTherapeutics - positive study results, still multi-bagger potential?...

06/04/2021

With a new team in place Afentra is a buy says Gary Newman

06/03/2021

Still excited about prospects for Johnson Matthey says Chris Bailey...

06/02/2021

Central Asia Metals - a buy? A review by HotStockRockets...

06/01/2021

Predator Oil & Gas - Morocco and Trinidad updates, more to come from this great share tip?...

05/28/2021

Playtech - good sale & a sensible update. Still undervalued suggests Chris Bailey...

05/27/2021

Smiths Group - CEO change, will the next change be to split the business?

05/26/2021

Biffa loves more waste and more recycling says Chris Bailey...

05/25/2021

Red Rock Resources - Elephant Oil and Juno Minerals investee updates, remains a Strong Buy...

05/24/2021

Power Metal Resources - news flow helps shares, more to come. From HotStockRockets...

05/21/2021

DCC - a compelling medium-term buy suggests Chris Bailey...

05/20/2021

Ariana Resources - more drilling results bode well for Kiziltepe, Buy says Nigel Somerville...

05/19/2021

Sage Group is still a friend of mine says Chris Bailey...

05/18/2021

Touchstone Exploration - Q1 results, an upcoming potential catalysts buy says HotStockRockets

05/17/2021

Predator Oil & Gas - as MOU-1 drilling excitement builds an update from HotStockRockets

05/14/2021

Bacanora Lithium - a buy at a big discount to the possible cash offer price? Gary Newman writes...

05/13/2021

Morrisons is still rudely unloved. A Buy says Chris Bailey...

05/12/2021

Panther Metals - Oz update. Targeting 25p says Nigel Somerville...

05/11/2021

Jadestone Energy - a pleased to announce Malaysia acquisition. We can understand why...

05/10/2021

J Sainsbury - full year results, still income value?...

05/07/2021

Sell in May? Some stocks Yes, gold No, argues Nigel Somerville...

05/06/2021

RISK WARNING & DISCLAIMER - FiveFreeShareTips.com tips are provided by independent authors via a common carrier platform and do not represent the opinions of FiveFreeShareTips.com. FiveFreeShareTips.com does not accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at FiveFreeShareTips.com and via emails you receive from [email protected] are for your general information and use and are not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by the tipsters or FiveFreeShareTips.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Trading shares involves the risk of loss. The tipsters and FiveFreeShareTips.com shall not be liable for any losses or other damages incurred. The value of investments can go up or down and the past is not necessarily a guide of future performance.

Five Free Share Tips?

. . . . . . . . . .

Well actually it will be six. One every week day and one on Sunday, each landing with you at 11 AM sharp.

The Details

Unlike other services (which may always have a vested interest) we pride ourselves on our impartiality and cover all small caps including AIM. the Standard List, The Wider Main Market and NEX.

We cover small caps, penny shares, FTSE 350 stocks and blue chips. We look for red hot penny shares, Warren Buffett style value investments with yield and growth stocks. There is no technical analysis in our work just solid fundamental analysis from a team of experts with decades of stockmarket experience.

You will not agree with all we publish but if you are interested in small caps you cannot afford to ignore it either. Yo'll never be charged for the free share tips from Five Free Share Tips and given the star writers involved you know that they will move share prices.

There's no telephone number or postal address required and there is no charge, ever, for your Five Free Share Tips membership. Just free shares tips every day apart from Saturday And each day's share tip will not just be a few thoughts cobbled together but will be detailed analysis from experts.

Our experts do not just earn their living from writing. All own shares. If they own shares in a stock they cover they will declare it and will not sell until after advising a sell to our readers. And why not our tips are so good that why shouldn't our readers put their money where their mouth is?

Don't just take our word for it! Judge us on the calibre of our free share tips and join today to start receiving them from September 1 2017. If you don't like what you get delivered to your inbox unsubscribe and you will never hear from us again. So why not give it a go? Sign Up Now

The Team

We've put together a panel of top tipsters, including:

Tom Winnifrith, in his 27th year writing about shares, noted fraudbuster & dubbed "The maverick Tipster"

Chris Bailey, City whizz kid turned financial guru, rated as one of the top 50 commentators on shares on twitter, founder of Financial Orbit

Steve Moore, has worked with Tom Winnifrith for all bar 3 weeks of his working life - a noted commentator on value stocks

Malcolm Stacey, The Grandfather of Share Blogging, the founder of ShareCrazy & a best selling autthor of stockmarket books

Lucian Miers, the Bard of the Boleyn, one of the UK's best known short sellers

Gary Newman, writes about value investing on AIM, speciality is in share tips on oil and mining companies

Nigel Somerville, The Deputy Sheriff of AIM, an expert in forensic analysis a skill used to bust frauds but also to tip true value investments

The team from HotStockRockets, specialising in AIM and small cap shares which will fly on a three month view

Sign Up Now

UK Investor Show 2018

Remember to book your place at the UK Investor Show 2018. The UK’s top investment show taking place on Saturday 21 April 2018 at the Queen Elizabeth II Conference Centre in Westminster, London. The show will feature a unique line-up of top speakers including Nigel Wray, tech queen Vin Murria, Dave Lenigas, Mark Slater, Tom Winnifrith, Adam Reynolds, Ed, Croft, Nick Leslau Luke Johnson and Dr Johnny Hon as well as 135 exhibiting small cap companies.

To reserve your ticket, visit UK Investor Show.

Risk Warning & Disclaimer

The hot share tips given here are of necessity, general. They cannot relate to the individual circumstances of investors. Anyone considering following the share tips contained here should seek independent advice from a Financial Conduct Authority authorised Stockbroker or Financial Adviser. We cannot be held liable if individuals suffer losses through following share tips contained on this site or emailed out as free share tips. The value of investments can go down as well as up. The past is not necessarily a guide to future performance. Investing in shares can lose you part or all of your capital although the potential returns are theoretically unlimited. The difference between the buy share price and the sell share price for smaller company shares (penny shares) can be significant. Profits from dealing in shares may be liable to tax - the level of tax and bases of relief from tax are subject to change. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Some of the shares recommended on this site will be smaller company shares. By their nature such investments can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares (or 'small caps'/'penny shares'). FiveFreeShareTips.com & its sister site ShareProphets.com defines a smaller company share as any stock traded on AIM or NEX or which has a market capitalisation of less than £300 million.