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.

With gold rocketing, the production level warning will not have any impact on profits, in fact I would think that they will be announcing that profits will be in excess of market expectations as long as the spot price continues to rise.

Gold at $1392.90 highest ever finish,Silver also flying at $26.37 worth looking at Asian Silver AGQ.
cyril

November 2010

43 Years of Stockmarket Experience writes...

Gold is at $1404 oz. Silver is at $27.90. The NAV of your fund has raced ahead in 62 weeks from 100p to 181.1206p and we hope that the best is yet to come, the fundamentals driving Golds rally are as strong as ever.

Gold is pushing upwards, and we believe that due to operational gearing the Fund will continue to do so too! Last week we saw 'Obamanomics' at its finest. After a trouncing in the Mid Terms, which will see Obamas flagship legislature unpicked by the Red House of Reps, and a now two year long period of bureaucratic stalemate, the Fed announced on Wednesday the clearing of the route for a second bout of Quantitative Easing. So the dollar will be devalued rapidly. And we believe that this is a process that has a couple of years to run. But no trading nation can afford its currency to be uncompetitive and so the G20 squabbles like ferrets in a sack as the great nations of the world engage in competitive devaluation.

The pickle that the US finds itself in will eventually lead to the demise of the Dollar as the World's currency. In the meantime it'll see Gold, and Silver for that fact, whiz further ahead. By some measures US unemployment has reached circa 20%, and the real scale of the debt that the US faces is yet to be realised by most Americans. In the next decade the US HAS to completely refinance itself to stay afloat. The state of the economy is that as of the moment, America's second largest Creditor is China, with the Treasury in the top spot. After America's continued attempts at currency devaluation, the US is, needless to say no longer in the PRCs good books.

At some point in the future the Chinese will decline to further the funding of their main Currency competitor. The World however is currently not yet ready to trust the Renminbi. Until the time that it does we will continue to see Investors fly from Cash and cash denominated investments to hard Asset classes, i.e. Gold, Silver, etcetera. We are even seeing Oil creep closer to $100 barrel.

The reason for the flight to safe haven asset classes is that the US, plus the majority of the Western World (including Japan), are so heavily indebted that there is no other feasible option but to maintain miniscule interest rates while devaluing paper currency to whittle away at the 'real' value of their debts. To draw upon the words of John Maynard Keynes 'Belligerent Governments, unable, or too timid or short-sighted to secure from loans or taxes the resources they require, print notes for the balance'. The US has exhausted its tax policies, and almost its debt capabilities, and instead of tightly reigning in decadent spending and promoting pro-business legislature (like for example China has), the US has decided to electronically credit its account with Dollars. The result is 'monetary dilution'. Put simply, in these untoward circumstances the Dollar in the pocket today will be worth less tomorrow ( to misquote Harold Wilson). The fundament al reason for this is that as more currency finds itself in circulation, Inflation ensues. Inflation has, until recently, not been taken seriously. We have recently identified that numerous wholesale commodity prices are increasingly on the way up. For example, Agricultural Raw Materials are up 24%, Coffee 45%, Barley 32%, Beef 23% and Sugar 24%. For the naysayers of Inflation, how long will it be before we see these increases at wholesale level trickle down to the more familiar retail prices? On a trivial level Next is set to put its clothes prices up by 8% as of next year.

More seriously, the argument for Gold has never been so compelling. Accordingly, this month we have taken part in the placing of a new investment vehicle with a mandate to invest in Gold stocks (more on that later). Tom is at the helm of the astutely selected stock portfolio. We reckon Gold and Silver will continue to push on higher. Your Fund is the top performing Unit Trust in its class with a year to date increase of 73.4%, dramatically outperforming Golds year to date increase of 26.9%. Since launch the Fund is is up by 81.12%. Of course past performance is not a reliable indicator of future results and we would like to draw your attention the important risk warning at the end of this message. In light of this our investment strategy remains in tact and stable. We are not deviating; we continue to add to our attractively priced holdings as and when we feel it appropriate. This month we have been nibbling at and compounding our positions in, amongst others, Ariana, Ovoca, Norseman, and Angel Mining.

You may say ''but we are in a frenzy''. Having seen many frenzies during a 43 year stockmarket career I can say for sure that we are not. In terms of gold we are still 30% below the real all time high price. When a frenzy starts gold will shoot ahead in a straight line gaining $50 in a session. And then the next. And then the next. The climax of any upswing is always that dramatic. What we see now is a $20 gain one day and then a $10 retreat. The trend is up but it is not straight line. It is not climactic. And in terms of equities: where is the bid frenzy that marks the top of any rally? Where are the quite ludicrous movements on the basis of mere rumour? Has your postman told you to buy gold stocks yet? Yes there is enthusiasm for the sector but not madness. Not even signs of it. We are still in the foothills of a major movement.

Robert Sutherland-Smith

yes, we know that bit ..... and your money and mouth?

Trend still in an upward channel though.

do you need glasses harry??

Nope. See chart at the top of the page.

yup, i've seen it ... straight down through 25 and 50 dma without a thought

O.K. I will concede, has gone a bit flat! Time to get out then on the next bounce up?

lol.,.

as long as gold continues its upward trend, i shall probably continue to hold

cynic

Have you any share's in MML ? RNS out today.

CEY up 5p in oz , so i have been told

Took profit. If it should go below 170p, will re-enter.

Hanging on to mine for a few days longer on the basis that uncertainty usually gives gold a boost - but must admit the current profit is tempting.

CENTAMIN EGYPT ANNOUNCES A PROPOSED PLACING OF APPROXIMATELY 51.5 MILLION NEW ORDINARY SHARES



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, SOUTH AFRICA OR JAPAN OR ANY OTHER STATE OR JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO



Centamin Egypt Limited, dual listed on the London Stock Exchange (LSE:CEY) and the Toronto Stock Exchange (TSX:CEE) (the "Company" or "Centamin"), today announces that it has entered into arrangements to issue approximately 51.5 million new ordinary shares in the capital of the Company (or Depositary Interests representing such ordinary shares) with BofA Merrill Lynch and Stifel, Nicolaus & Company, Incorporated ("Stifel Nicolaus") who will seek to place such shares (the "Placing Shares") with institutional investors pursuant to an accelerated bookbuild, non pre-emptive underwritten placing (the "Placing"). The Placing Shares will represent approximately 5.0 per cent. of the Company's existing issued ordinary share capital and will be admitted to the Official List of the UK Listing Authority and to trading on the London Stock Exchange plc's main market for listed securities.



With the development of Sukari progressing well, Centamin intends to use the net proceeds of the offering for general corporate and working capital purposes as it pursues its growth strategy in the region.



BofA Merrill Lynch is acting as sole bookrunner to the Placing. Stifel Nicolaus is acting as co-lead manager to the Placing. The price at which the Placing Shares will be issued (the "Placing Price") will be announced by the Company as soon as practicable hereafter.



The Placing Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing ordinary shares of the Company ("Ordinary Shares"), including the right to receive all dividends and other distributions declared, made or paid on or in respect of such shares after the date of issue of the Placing Shares.



The Company will apply for: admission of the Placing Shares to the Official List of the UK Listing Authority; trading on the London Stock Exchange plc's main market for listed securities; and the approval of the Toronto Stock Exchange ("Admission"). It is expected that Admission will take place and that trading in the Placing Shares will commence on or about 14 December 2010.



The issue of the Placing Shares is conditional upon Admission becoming effective and the Placing Agreement between the Company, BofA Merrill Lynch and Stifel Nicolaus becoming unconditional and not being terminated.



The Appendix to this announcement (which forms part of this announcement) sets out the terms and conditions of the Placing.

What's the placing price ?...can't see it anywhere .....not in but considering...

Placing price to be announced later - also considering.

you could do a lot worse ..... rather better than just a promising gold junior