CEY is a gold mining company operating in Egypt. It was ordered by the Egyptian Government to stop drilling pending a legal dispute brought against the company by a government minister.

Since then, the whole Government cabinet was replaced a few months ago and the minister now in charge of Mining is believed to be positive on Western investment in the country. CEY are pushing for this minister to allow them to continue drilling ASAP; investers are waiting....patiently.

As soon as the company gets the go-ahead to continue drilling, the share price will move north; CEY has plenty of gold in this mine and it is (apparantly) the case of "raking" it out rather than drilling for it!

Check them out...worthy of a punt.

Cyril,don,t lose sight of the fact that CEY stood at 83p at the beginning of September.Two nonths later,the sp is up by over 60%.A fantastic rise by anybody's standards.
After all,Rome was not built in a day,or even 2 months. Just ask NERO! (who they say tried to torch the lot!Or,perhaps he fiddled while somebody else did the torching.)

CP yes your right but a lot of that has to do with the POG.Its just to get the full benifit i'd like to see a progress report,it is afterall a 1.3b company.
cyril

I was listening a little earlier to Charlie Morris ,head of HSBCs Absolute Return, re where the price of gold goes from here.In his opinion,gold mining companies in general had a long way to go yet.The main of the reason, he felt, was that up till now they had been badly managed.He was a bit sketchy on why this was the case,but a bit of "food for thought."

A banker talking of bad management,hmm? lol
Seriously though nice to know that potential,still think a update of some sort
is needed to assure the market everythings in order?
cyril

Transfering to the main market seems to have done the trick,up now at 147p.
cyril

sold my AVM to buy CEY.. last week, shame but looking like the right move thanks cynic

Also in but wished I'd done it earlier, good luck all.

In my SIPP at 92p in August. Makes a nice change for me :-) No reason to sell yet imho

Especially considering the rising gold price.(although down a bit this morn)

Price is down 6,but it should be noted that 2/3s of 4 mill trades are buys.

One peice from the following,

Company remains debt and hedge free
http://www.investegate.co.uk/Article.aspx?id=200911110700063057C

cyril

The market ,however is not too impressed,judging by the fact the sp is down while many mining stocks are up strongly.

Some profit taking and settling down now in the main market, would think? So now an idea of whats what? Production by year end, which if the POG holds up,makes for an exciting and profitable 2010? aimo
cyril

The way gold is going (up $13 dollars today....gold will start to rise in big lumps now not one or two dollars at a time)....I can see the sp climbing right up to 170p or even higher perhaps 180p...unhedged and coming into big production by the year end...the sharp rise in gold could not have been better for this miner.

An article from The Daily Telegraph on 11 November.I would say that this represents a good reason to be optimistic on the continuing rise in gold prices.




Barrick shuts hedge book as world gold supply runs out
Global gold production is in terminal decline despite record prices and Herculean efforts by mining companies to discover fresh sources of ore in remote spots, according to the world's top producer Barrick Gold.

By Ambrose Evans-Pritchard, International Business Editor
Published: 7:20PM GMT 11 Nov 2009

Comments 235 | Comment on this article

Liquid gold: Gold is poured from the induction kiln Photo: JULIAN SIMMONDS
Aaron Regent, president of the Canadian gold giant, said that global output has been falling by roughly 1m ounces a year since the start of the decade. Total mine supply has dropped by 10pc as ore quality erodes, implying that the roaring bull market of the last eight years may have further to run.

"There is a strong case to be made that we are already at 'peak gold'," he told The Daily Telegraph at the RBC's annual gold conference in London.


Related Articles
Gold: how high can the price go? "Production peaked around 2000 and it has been in decline ever since, and we forecast that decline to continue. It is increasingly difficult to find ore," he said.

Ore grades have fallen from around 12 grams per tonne in 1950 to nearer 3 grams in the US, Canada, and Australia. South Africa's output has halved since peaking in 1970.

The supply crunch has helped push gold to an all-time high, reaching $1,118 an ounce at one stage yesterday. The key driver over recent days has been the move by India's central bank to soak up half of the gold being sold by the International Monetary Fund. It is the latest sign that the rising powers of Asia and the commodity bloc are growing wary of Western paper money and debt.

China has quietly doubled holdings to 1,054 tonnes and is thought to be adding gradually on price dips, creating a market floor. Gold remains a tiny fraction of its $2.3 trillion in foreign reserves.

Gold exchange-traded funds (ETFs) dubbed the "People's Central Bank" have accumulated 1,778 tonnes, making them the fifth biggest holder after the US, Germany, France, and Italy.

Ross Norman, director of theBullionDesk.com, said exploration budgets had tripled since the start of the decade with stubbornly disappointing results so far.

Output fell a further 14pc in South Africa last year as companies were forced to dig ever deeper - at greater cost - to replace depleted reserves, not helped by "social uplift" rules and power cuts. Harmony Gold said yesterday that it may close two more mines over coming months due to poor ore grades.

Mr Norman said the "false mine of central banks" had been the only new source of gold supply this decade as they auction off reserves, but they are switching sides to become net buyers.

Barrick is moving fast to wind down the remaining 3m ounces of its infamous hedge book over the next twelve months, an implicit bet on rising gold prices over time.

Mr Regent said the company had waited too long to ditch the policy, which has made the company enemy number one among 'gold bug' enthusiasts. The hedges oblige Barrick to deliver part of its gold into futures contracts set long ago at levels far below today's spot prices.

The strategy worked well in the falling market of the 1990s, but has cost the company dear in lost profits this decade. "Hindsight is always 20/20," said Mr Regent, who was appointed from the outside earlier this year.

Barrick bit the bullet in the third quarter, taking a $5.7bn charge against earnings on hedge contracts. Liberation is at last in sight. In 2001 the hedge book topped 20m ounces.

Mr Regent said the hedge policy has weighed badly on the share price and irked investors, becoming a bone of contention at every meeting. The financial crisis brought matters to a head as markets fretted about counterparty risk. "It was clear to me that there were a significant number of institutions who wouldn't invest in Barrick because of the hedge book," he said.

Barrick produced 1.9m ounces of gold last quarter, down from 1.95m a year earlier. Costs have been "trending down" to $456 an ounce, though rising energy prices pose a fresh threat. Total reserves are 139m ounces, far ahead of rival Newmont Mining at 86m.

The hedge book venture has not been a happy one, but those who predicted that Barrick would eventually "blow up" on its contracts may owe the company an apology

Re outlook for gold.
Check out this useful info at bloomberg.com



Takai Says Gold Price May See `Quick Pullback' to $1,070 November 18 (Bloomberg) -- Bob Takai, general manager of financial services at Sumitomo Corp., talks with Bloomberg's Zeb Eckert about his forecast for the price of gold. Watch

IT's 1035 $ at the mo.

try $1136 - live spot gold price on IG

1138.9 to be pissy lol whats a missed "0" between friends.... sent you a mail cyners could you have a look please.

Gold price closes in on $1,200
27th November 2009

The price of gold soared again today leaving the cost per ounce a whisker away from cracking the $1,200 level.

The gold spot price surged to $1,195 this morning as the dollar saw its biggest fall in 15 months, raising hopes that central banks would jump in to buy more bullion in their effort to hedge against a falling currency. Yesterday, demand was buoyed by a news report that India may consider buying more bullion from the International Monetary Fund.

Gold soared to $1,195 this morning as the dollar saw its biggest fall in 15 months.
The IMF also confirmed that Sri Lanka had bought 10 tonnes of gold. India bought 200 tonnes of IMF gold ealier this month triggering the recent leg up in the rally in bullion.

'Everybody is bullish on gold, and everybody is looking at the signal central banks are sending,' Dick Poon, manager of precious metals at Heraeus in Hong Kong, told Reuters.

'It's not just India or China, but most of the central banks, as well as funds, have changed their portfolios to include gold. So, everybody is looking at how much money they will invest in gold.'

Traders are currently pouncing on any speculation of central bank buying. Following the early excitment today, the price of gold eased back to $1,082 by 3pm. A decline in the dollar throughout 2009 has also helped support gold demand. It has sparked a debate on the greenback's long-term prospects as the world's reserve currency.

Central banks are expected to become net buyers of gold this year for the first time since 1988. Investors have also historically turned to gold to protect them against inflation, prefering to hold 'real assets'.

While consumer price rises have been quelled and replaced by deflation in Europe and the US during the financial crisis, expectations of a return to inflation have risen, especially in the UK, in recent months.

Gold started the year a little above $880. The rise so far represents an increase of 36%. It has been one of the best performing assets during the past decade rising from a low of $252 in 1999.

Gordon Brown, as chancellor, famously sold off 395 tonnes from Britain's national reserves at an average price of $275 an ounce in a series of auctions between 1999 and 2002.

The mood in markets was generally volatile following the news of financial problems in the Middle Eastern state of Dubai.

Its government has been forced to call in accountants Deloitte to advise on a financial restructuring, as its economy buckles under $80billion of debt.

Comments by Dylan Grice, an strategist at investment bank Societe Generale, stirred up fevered debate in internet forums last week by suggesting that the price of gold could exceed $6,000.

He said it was possible to make comparisons with gold bull market of the 1970s - a period of tight energy markets, central banks pumping in to much liquidity and 'nervousness that policymarkers had lost their way'. Read more on this on FT.com

Rolfe Winkler of Reuters also blogged about the comments with some interesting charts. While supporting some of Grice's findings, Winkler adds that investors should be careful: 'Grice's chart shows that, over the long run, gold is likely to do no better than protect your purchasing power.

'An ounce of gold today buys a good men's suit; in 100 years, it is likely to buy the same. So gold won't make you rich. But it may protect you from becoming poor.'