Centamin – Deafening Silence on whether it is selling gold or not

I flagged up on the third of January an explicit allegation that fully listed gold miner Centamin (LSE:CEY) was not in fact selling any gold. The allegation was originally not made by an attention seeking share commentator (i.e. me) but by a well regard research analyst in a published note distributed by a respected London broker, viz Fox Davies. If the allegation is true then the implications for short term cashflow/ working capital at Centamin are profound. The response from Centamin? Er…

My article of 3^rd January which spells out in very clear terms what this means for Centamin if Fox Davies is correct can be found here

Centamin normally comments on market speculation. But this is a clear allegation and yet the silence from the company is deafening. That makes me think that the broker is bang on the money and thus, until the company clarifies the exact position, anyone holding the stock is taking a very real gamble indeed.

As it happens I view the upside at Centamin at 39p as minimal if it is selling gold as I explain here. If it is not selling gold then the downside is not something you wish to contemplate.

Tom Winnifrith writes for 10 UK and US financial and political websites. For alerts on all his articles and thoughts follow him on twitter @tomwinnifrith  

Tom is also managing editor of ADVFN’s new service, Onefreesharetip.com  which sends out a free share tip every working day from one of a panel of 20 leading share tipsters, bloggers and analysts. Next week sees tips from (among others) top chartist Zak Mir and resources gurus Brokerman Daniel and Sam Bottell.  To ensure that you join thousands of other investors looking for free ideas register HERE today.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Related Articles:

Comments

1. Dan says:

   January 9, 2013 at 8:42 am

   Tom Tom shame shame!!!! Read your article “https://www.advfn.com/newspaper/tom-winnifrith/13761/centamin-shares-collapse-time-for-bulletin-board-morons-to-apologise-to-me-still-a-sell”

   That says “At 27p your upside is maybe 10p, your downside is 17p. The shares remain one to sell.”

   Already I made 100% today, within a month!!! So I ask you again “STILL REMAIN SELL??????” Reckon “Time for you, The Failure, to apologise for making a panic and set few to sell”

2. Topman says:

   January 9, 2013 at 11:33 am

   Silence is golden! ;0)

3. mog says:

   January 6, 2014 at 10:48 am

   So where is this comment from Fox Davies then.

   Do you mean the one dated January 2013, Mr Winfrith. !!!!!

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Currencies Direct

• 

  Lee Wild

• 

  Rebecca Clinton-Floyed

• 

  Matt Simpson