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.

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http://www.kitco.com/charts/livegold.html

Hemscott premium broker figs. Way too cheap IMO. A P/E of just 9.6 to 2012!!

Centamin Egypt Ltd

FORECASTS 2011 2012
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Evolution Securities Ltd
11-07-11 ADD 144.98 12.78 137.94 11.73
Fairfax IS
05-05-11 BUY
Canaccord Genuity Ltd
21-04-11 BUY 12.80 19.50
Numis Securities Ltd
13-04-11 BUY 103.91 9.84 127.28 11.68
Westhouse Securities
17-03-11 HOLD

2011 2012
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 127.80 11.93 133.48 14.09
1 Month Change 0.42 0.01 0.11 -0.05
3 Month Change -17.49 -0.88 -4.75 2.33


GROWTH
2010 (A) 2011 (E) 2012 (E)

Norm. EPS 399.87% 204.69% 18.08%
DPS % % %

INVESTMENT RATIOS
2010 (A) 2011 (E) 2012 (E)

EBITDA 67.40m 154.30m 166.51m
EBIT 40.60m 103.30m 124.20m
Dividend Yield 0.00% % %
Dividend Cover x x x
PER 34.68x 11.38x 9.64x
PEG 0.09f 0.06f 0.53f
Net Asset Value PS 26.64p p p

Good to see the trend in stock on loan a proxy for short selling is falling on CEY. Chart shows the trend is now falling to the downside going well into July......

CEY


http://www.proactiveinvestors.co.uk/columns/broker-spotlight/5957/

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Switched over to Highland Gold......now as not sure if Centamin will climb any further...

Been long here since last Friday and thought it might come under pressure today.

I've taken a small gold short @1586.4 - 10 point stop. I understand that today is D day for the yanks if they are to get things through by August 2nd.

of course they will - it's just the usual brinkmanship crap

meanwhile, shall hold off buying back into these as there seems nothing to encourage to an immediate upsurge that i can see ..... if sp falls back another 10/15p or rises similarly, then may reconsider

Hence my hedge :-)

http://www.proactiveinvestors.co.uk/companies/news/30904/merrill-analysts-highlight-compelling-buyer-case-for-gold-equities-30904.html

With gold continuing to hit new highs on worries about Eurozone and US debt, Merrill Lynch analysts are not a little bemused to note a recent, sustained underperformance by gold plays, especially in Europe, versus bullion.

In their view the discrepancy demands investors consider a number of gold stocks that fall into this underperforming category, including Petropavlovsk, African Barrick Gold and Centamin Egypt.

In a research note looking in detail at the mismatch between the performance of gold stocks and bullion, which a few days ago surged to all time high of US$1600/oz, the analysts insist that, in their view, the strong gold prices are not an indication of a bullion bubble, especially when considered relative to other commodities and financial assets.

For Merrill, the gold equity de-rating is partly due to the fact that, following large price gains in recent years, investors remain concerned about the long-term direction of gold prices.

Their own view, however, is that bullion prices between $1500-2000/oz are sustainable in the medium term. Furthermore, Merrills base case equity valuations use a conservative $1110/oz long term price. Assuming $1500/oz longer term therefore would represents even further upside potential on what are already depressed valuations.

On the basis of its analysis, the broker reckons there is, therefore, compelling scope for catch up trade with a regards to a number of gold plays. Its favourite buys are Centamin, Petropavlovsk, African Barrick, Randgold, and European Goldfields(LON:EGU).

While the analysts believe investor wariness about the outlook for gold prices is a major explanation for underperformance of gold equities, they concede stock specific issues are also to blame to a certain extent. They add, however, that in relation to their top picks, many of these issues are now well understood and on their way to being resolved.

Randgold, for instance, has suffered a de-rating due to recent political unrest in the Ivory Coast unrest, delays at its Loulo gold mine in Mali, and difficult metallurgy at its Massawa gold project which straddles Mali and Senegal. We think these issues & concerns are now well understood and priced in," says Merrill.

Centamin has been traded down as an Egypt proxy on political unrest but Merrill sees the resulting, ongoing fears about the outlook for its operation there as overdone and Centamins ability to operate in the country as secure.

Petropavlovsk has been suffering from an overhanging disappointment over missed guidances in 2010 and concerns about the outlook for its capital and operating costs. Merrill analysts, however, argue that recent updates from the company demonstrate credible plans for its future and that the de-rating of its shares seems overdone.

African Barrick Gold, another Merrill top pick, was plagued by operational disappointments in 2010 and they have continued to weigh on sentiment. But the broker believes most of its problems have now been overcome, and the company is demonstrating improved performance.

Across its top picks above, Merrill notes that Petropavlovsk, African Barrick Gold and Centamin, in particular, are trading near or below their net present value.

The surge in bullion prices reflects investor interest in the physical form as a safe haven in uncertain times. But, as the analysts point out, one key reason to own gold equity over bullion is that gold companies aim to grow their reserve and production base over time, as well as pay dividends.

The analysts favour gold companies that offer more growth potential and believe Centamin Egypt and Randgold screen particularly well in this regard.

Merrill Lynch has a target price of 730 pence of African Barrick Gold; 270 pence for Centamin Egypt; 1,200 pence for European Goldfields; 1,250 pence for Petropavlovsk; and 6,800 pence for Randgold Resources.

Broker Note Out.......

Centamin Egypt Ltd
FTSE 250
Basic Materials
Accumulate
157
137.2
14.4%
Westhouse Securities


157p SP Target.

Target of 157p seem's a bit low

Pre political stability, seems about right. Once civil government sorted and gold price still on a high, would expect previous high to be reached.

buy buy buy 200p is going to come with out doubt

Big institutions building up their stakes.

Tis me ! :-)

StockMarketWire.com
Centamin Egypt's recommended cash offer for Sheba Exploration (UK) has been declared unconditional in all respects.

Centamin said it had received valid acceptances in respect of 104,528,794 Sheba ordinary shares - 91.25% of the issued ordinary share capital.

The offer will remain open for acceptance until further notice.

Flying the flag for the gold mining industry, Centamin Egypt (CEY) makes an appearance on the same day.

Andy Davidson, analyst at Numis, is forecasting second-quarter production of 55,000 ounces, up from 45,000 ounces in the crisis-affected first quarter.

"Improved open pit grades should help see unit cash operating costs fall to around $510 per ounce. However, despite the higher production and gold price we see lower quarter-on-quarter revenue of $86 million (c52.3 million). The key uncertainty on future production and unit costs relates to the expected output from the new underground mine. We will be looking for further guidance on this front as promised for mid-year," he said.

Seems their's a BOILER ROOM SCAM doing the rounds using CEY as bait,take care.