CENTAMIN

Analysis of Centamin share price

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If you are one of the investors interested in the Centamin share price and you wish to invest in this asset then we offer our assistance here with the completion of a comprehensive analysis of this company. To do so you will need certain basic knowledge about this company such as details of its activities in various industry sectors and the major sources of its revenue. You will also need to know about its major competitors as well as recent strategic partnerships and alliances. We will also provide information related to the advantages and disadvantages of this company’s shares and some data you should study for the completion of a fundamental analysis.

Elements that can influence the price of this asset:

Analysis N°1

Firstly, as is the case with all the companies in this activity sector, we would of course follow the commodities market, particularly movements in the gold and silver prices which will of course influence the profits of this group.

Analysis N°2

The discovery of new mines and the opening of new extraction centres are also indicators of a rising share price as gold is becoming increasingly rare and it is progressively more difficult for gold companies to meet the demand.

Analysis N°3

The economic health, notably of the industrial and the jewellery sectors are also factors that could strongly impact this company’s share price on the stock markets.

Analysis N°4

It would of course also be advisable to follow all strategic communications from the group which is very informative concerning its precise growth and development objectives.

Analysis N°5

Finally, we would also carefully analyse the financial results published each year and each quarter by the group which should be compared with the analysts’ expectations and the objectives communicated by the company.

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General presentation of Centamin

At present, and still with the objective of assisting you in anticipating the future movements of the Centamin share price, we offer you the opportunity to learn more about this company. This will enable you to better understand its profit sources and how these may react in the future.

The Centamin Plc Group is a British company that exercises its activities in the precious metals sector. More specifically, Centamin is an exploration, development and mining company. It is therefore specialised in the discovery and production of precious metals.

This company exercises its activities in Australia, Jersey, Egypt, Burkina Faso and the Ivory Coast. Among the assets owned by this group we particularly note the Sukari gold mine which is situated in the eastern desert 900km from Cairo and 25km from the Red Sea. This mine is jointly held by Pharaoh Gold Mines NL, or PMG, and the Egyptian Mineral Resource Authority, or EMRA, and holds a minerals permit for the gold mining zone which is nearly 100km long in Burkina Faso. The group also owns a collection of buildings on an area of 2,200 square kilometres in the south of Burkina Faso, close to the border with the Ivory Coast.

The Centamin Group also owns seven mines on the Ivory Coast with an area of over 2,330 square kilometres.  Six of their mines are related to the Doropo project which is situated on the other side of the Batie West border in Burkina Faso and the other is situated to the east of the country.

Concerning the various activities of the Centamin Group we note that gold production represents the major source of the company’s turnover by far with 99.8%, only 0.2% of Centamin’s turnover is from silver.

Analysis of Centamin share price
76.4% of retail investor accounts lose money when trading CFDs with this provider. Trade CFDs with Plus500

The major competitors of Centamin

Now that you possess a good basic knowledge of the Centamin Company and its activities we will provide you with details on this company’s major competitors in the market sector relating to the production and sale of gold and silver.

Barrick Gold 

This Canadian company is currently the largest gold producer worldwide due to its numerous mines in various countries around the world. As well as producing a large amount of gold, Barrick Gold manages to do so at a higher than average return.

Newmont Mining

This American gold mining company is the largest in this country and the second largest worldwide. It is less profitable than Barrick Gold.

Anglogold Ashanti

This South African company is also one of the major gold producers worldwide but is currently suffering from the impact of the corruption in certain of the countries where it exercises its activities with a lower production and a weak profitability.

Goldcorp

This company is also based in Canada and is specialised in the extraction and production of gold. This is the second largest group in this country, just behind the giant of this sector, Barrick Gold, but its profitability is much lower.

Kinross Gold

This company is also based in Canada and is the third largest in this country in terms of production volume.

Newcrest Mining

This Australian company is one of the most stable companies in the gold sector at present.  Its annual production has not really changed over recent years and it boasts an attractive return with relatively low extraction costs.

Gold Fields

 This company is based in South Africa and is currently experiencing some difficulties particularly related to the costs of mine operations which is significantly affecting its profitability.

Polyrus Gold

This is one of the rare Russian companies in this activity sector. Polyus Gold does in fact produce less than its Anglo Saxon competitors but does offer the advantage of a higher profitability.

Agnico Eagle

Another Canadian company in this sector which has experienced a drop in its production over the last few years but its recovery perspectives are promising due to some new mines awaiting operation that have a strong potential.

Sibanye Gold

Finally, the Sibanye Gold Group is the last major competitor of Centamin. It is a South African company that is one of the largest producers of platinum and palladium worldwide. This diversification enables it to be less dependent on its gold activities than its competitors.


The major partners of Centamin

Of course, the Centamin Group does not only have competitors, it also has strategic allies and we will cover these more in detail here with two particular examples of partnerships that Centamin implemented in recent years.

Yongnan and Tietado

Recently Centamin implemented strategic partnerships with the Yongnan and Tietado associations with the objectives of improving the image of Centamin. In fact this mining company donated sanitary and cleaning materials to these two entities based in the town of Batié as well as anti-venom and anti-rabies supplies to this town’s medical centre. A presentation ceremony was held by the High Commissioner of the Noumbiel province on the 28th July 2017.  The gift of cleaning materials to the associations concerned included wheelbarrows, spades, rakes, gloves and waste bins which thereby enabled these associations and the local population to assure the community’s hygiene. According to statements from the Centamin Company on this subject, the sanitary and cleaning equipment and supplies were a contribution by the company towards the promotion of hygiene and sanitation around Batié.

Endeavour Mining

Another major strategic partnership implemented by Centamin was with the Endeavour Mining Company with an agreement relating to prior audits of their reciprocal mining activities in order to determine the feasibility of a possible merger. The two CEOs met in Perth, Australia with this objective. The aim of the Due Diligence operation for this project was therefore to enable both companies to better understand their respective assets in order to determine if the financial terms of a transaction could be agreed upon bearing in mind the advantages to the shareholders.  It should be remembered here that this alliance relates to a precise and particular context as the Endeavour Mining Company made a public merger offer of 1.89 billion dollars to Centamin after several unsuccessful attempts to start negotiations with the Board. Finally, Centamin refused this offer indicating that it undervalued its assets which were in fact worth much more and were less risky than those of Endeavour.

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Frequently Asked Questions

The Centamin share price is quoted on which financial marketplaces?

When it was first introduced on the stock markets, the Centamin share price was quoted on the Australian stock market. Nowadays this company benefits from a double quotation. You can find its share price on the major British financial marketplace, the LSE or London Stock Exchange, as well as the Canadian stock exchange. It should be noted that the Centamin share price is also included in the renowned British stock exchange index, the FTSE 250, which combines the 250 companies with the largest stock market capitals in the United Kingdom.

What are the forecasts for the financial results of the Centamin Company?

If we refer to the growth plan published by the Centamin Group the forecast for the 2020 financial year are as follows: The group should achieve a turnover of nearly 863 million pounds with a net result of 172 million pounds. Its net treasury should therefore achieve 298 million pounds with a PER of 11.9 X and a return of 6.46%. Of course, it is necessary to check the achievement of these objectives by comparing them with the company’s real financial results which are published annually.

Where to find important information concerning Centamin shares?

To ensure you do not miss events related to the Centamin Company and be able to detect future movements and trends in its share price visit the official website of this company and go to the area reserved for company investors.  There you will find all significant data and information concerning this company’s finances and events as well as useful details for trading in this company’s shares such as its dividend history and financial results for the last few years.

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