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.

CEY is seriously undervalued now for a gold producer and explorer.

check out their PE ratio and market cap never mind the political risk and lower production forecast.

Collins Stewart note:
Blasting constraints hit production
Limitations in the supply of explosives slowed progress in Q2, seeing the company cut full year guidance by c.18% to 200-210koz at a $100/oz higher cash costs of $550/oz. Q2 production was 47,991 ounces, up 6% on Q1 and within 4% of our estimate. Cash costs rose sharply to $606/oz, up 15% on Q1 and 11% above our estimate. However a strong sale price of $1545/oz, boosted the financials to deliver an operating profit of $48.2m, 5% above consensus and our estimates, and an EPS of 4.4c/share vs. 3.8/share.

Explosive inspectors to blame:
Production was affected by the supply of blasting product being constrained by government blast inspectors. The company is confident that the issuing of explosives will normalise in Q3, but the lost progress has resulted in the downgrade. The company did start commercial production from the underground and is now expecting lower volumes at higher grades as the mining methods have now been defined.

Centamin has also finally announced the capital cost estimate for the Stage 4 development to 10mtpa of processing capacity of $255m (excluding contingency). This is 42% above the scoping study estimate of $179m (excluding contingency) which at the time didnt include mining equipment. On a like for like basis, this is therefore a 15% increase on the cost estimate for the expansion less mining equipment. The expansion has been approved by the board, with commissioning planned to take place in Q1 2013.

Our Valuation and TP
We have pushed through the updated guidance and capital estimates through our model. This cuts our NPV by 18.5% to $1,990m. Applying our standard multiples of 2x operations and 0.5x the Sukari Phase 4 project, we generate an updated target price of 170p, representing a 17% cut. We continue to recommend the stock as a buy, however with the second cut to guidance this year, we are likely to see continued weakness in the stock in the short term.

yep - i'm having a great day here today - hope you are doing well also

past 112 - only 1 thing for it...

yeeeeeeeeeeeeeeeeeeeeeeeeeehaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa

past 114!! plenty more here according to l2 - fill ye boots

He who dare's win's , gibbo

yes delboy!

.

you were very brave chaps but well done, though i hope you have taken at least partial profit

closed at 110p where next ...90p?

Yes, I agree that more downside to come.

Well, I shall go for an optimistic view and I think that the selling was way overdone.....could not watch all day so had to buy when I did, but not complaining... and we will back over 120p soon......anybody checked the price of gold lately ?....

rf the price of gold is not the factor it's CEY's perfomance against targets that matter to investors, they are falling short.

Took profits a little too soon at 113. Not sure which way sp will go this week.

Yes, temporarily.....I'm convinced that today was a superb opportunity to jump in "a la" Gibby !

crashed through 50 and 200 dma investors bailing out, too much risk and performance failure.

That is what sheep do......I never go by what other people do.....we shall see....watch this rise now.....

rf the others have made their money and have moved on to better opportunities.

Are there any ?....it's terrible at the moment......I'm hardly doing any trading at all now but I reckon that a repetition of last year's rise is on the cards again....