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.

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.


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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.'

An ounce of gold today buys a good men's suit Hmmm, must get the name of his tailor - and go long on them.

also known in english as "a good mAn's suit" ...... i assume that is not just for church elders and the like of proven high morality - the recently disgraced (ex?) rabbi and assorted irish priests are clearly excluded from among that number

From readibg around the AGM was extrenely positive and a few snippets gathered.
Production early 2010, expected 200,000ozs with costs at $365 ramping upto 300,000 ozs 2011 and 500,000ozs 2012,with costs under $300oz.
3% Royalty,no Corperate tax no debt or hedging,lastly new resource upgrade within 2/3 weeks
11/18th Dec.
cyril

And gold now at$1195

Released this morning,

Centamin, the gold mining group with operations in Egypt, is pleased to announce the following upgrade to its resources:

The Sukari mineral resource upgraded to 10.29Moz Measured and Indicated, plus 3.45Moz Inferred

cyril

Can anyone tell me why the share price dropped so much when the outlook is all good, sure as hell beats me!!!!!!!!!!

The gold price has dropped by $100. an ounce .not good for gold company prices..Don,t forget too ,that the share price has more than doubled,so profit is the name of the game at the moment.
The outlook still looks promising,however.

THE TIMES
Tempus:
Gold will gleam in 2010 but some miners will do better than others (Petropavlovsk, Randgold, Centamin Egypt)

Buy CEY at 123p. Gold won't stay low for long.

http://arabia.msn.com/Business/Economy/AF/2010/January/1157313Update.aspx?ref=rss
cyril

Seems we're going to get a news release next week?
cyril

FIRST GOLD EXPORT AND DESIGN THROUGHPUT ACHIEVED







Centamin, the gold mining group in Egypt, is pleased to advise that the Sukari Gold Project has achieved yet another important milestone with the commencement of gold exports to a nominated overseas gold refinery, Johnson Matthey.




The commencement of gold exports from Sukari coincides with the achievement of optimal design throughput at the Sukari Gold Project during December 2009. The 4mtpa processing facility is now performing in accordance with commercial production standards and in line with design specifications.




Sukari is the first modern commercial gold mine to be operated in Egypt, and has a current mineral reserve of 142Mt @1.4g/t Au for 6.4Moz. The current mineral resource stands at 210Mt @ 1.52g/t Au for 10.29Moz Measured and Indicated, and 66Mt @ 1.6g/t Au for 3.4Moz Inferred.




The achievement of the above milestones are a result of the extraordinary efforts and dedication of the entire team at Centamin and the co-operation of the Egyptian Government, in particular His Excellency Sameh Fahmy Minister for Petroleum and Mineral Resources.




We look forward to updating stakeholders on further progress of the Sukari Gold Project in coming months as the exploration, development and production at Sukari continues.

cyril

Yesterday's disclosure that Centamin's sole project Sukari, in Egypt's Eastern Desert has exported its first gold went some way towards justifying its soaring share price, albeit the scheme is six months behind schedule and one fifth over budget. The expected promotion to the FTSE 250 in March should underpin the shares, as should the update on its proven and probable reserves that is scheduled for the end of this month. At 137p, hold on says the Times.