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Egypt's lack of funds to import fuel is only getting worse - a wake up call to Centamin contemplating connection to Egypt's power grid
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Madbouly said that the value of the additional shipments will be between $250m to $300m. He stressed that these numbers were not available in the current budget or estimate, and therefore, it is an additional burden that the country will be able to provide under the current circumstances.
Egypt’s Prime Minister also announced that the government will be working to reduce electricity consumption in public facilities, such as street lighting and government buildings.
Madbouly also directed the Minister of Youth and Sports to play matches before sunset to reduce electricity consumption in sports facilities and stadiums.
He added that it was agreed to operate air conditioning devices at 25 degrees Celsius or more to consume electricity in the smallest possible amount.
Moreover, Egypt’s Prime Minister stated that the country will need to implement load-shedding procedures for about one to two hours daily due to high temperatures.
Madbouly said that the load shedding will be implemented in a balanced manner across the country and that it will not affect hospitals or strategic facilities.
https://www.dailynewsegypt.com/2023/07/27/egypts-prime-minister-announces-measures-to-address-power-cuts/
Hi Cowichan,
Well isn't this usually the case with Centamin , they make the slick presentations to shareholders about linking up to the grid, but in reality the country cant supply its existing domestic users/customers!
This is a valid and important consideration that needs addressing before Centamin commits funding to the project or promotes the potential cost savings which may turn out to be undeliverable any further with shareholders!
I wonder how many shareholders will take the trouble to raise this question with the company, likely not many , if any,more likely to go into "Ostrich mode", or put on the rose coloured glasses!
Egypt is going to be a part of the BRICS and will have far more options of what it uses to pay im waiting to see what comes out of there meeting on the22 to 24 August.
Presumably power from the grid is cheaper than generating it themselves, so seems a good idea. Presumably they will also be keeping their generators as a backup. I see no problem here.
The Egyptian £ devaluation, how will it affect CEY?
Assume it will be positive.
Mary it is unlikely to affect Centamin.
It is registered in Jersey an its currency is the UK pound ,it buys its fuel based on Dollars ,(at the moment).
Its Egyption employees will be paid at the current or future rate of conversion to the Egyption pound.
As an extra aside Egypt is increasingly taking investments in infrastructure from Russia.
At the moment building Egypts Nuclear powerstation, with latest reactors, run by Rosatom.
Also a large industrial zone in the Suez canal zone.
So foreign investment is coming into Egypt on a large scale ,also many others such as Saudia Arabia.
Of course many things can alter ,such as a Dollar de-valuation.
So its far from the end of the world.
On The Beach sees spike in Turkey, Egypt bookings on currency rates
Sun, 13th Aug 2023 09:29
Alliance News
(Alliance News) - UK holidaymakers are flocking to Turkey and Egypt to take advantage of favourable currency exchange rates, according to On The Beach Group PLC.
On The Beach said the number of bookings it has received for summer trips to those destinations is more than double the level from 2019, before the coronavirus pandemic.
It partly attributed this to the fall in the value of the Turkish lira and Egyptian pound against sterling over that period.
The number of lira that can be bought for a UK pound has quadrupled from around TRY8 in 2019 to TRY34 currently.
Holidaymakers visiting Egypt are receiving approximately twice as much local currency for sterling than they were before the virus crisis.
On The Beach said a sharp rise in flight capacity has also driven the rise in demand for holidays in Turkey.
There are an additional 1.2 million seats on flights from the UK to Turkey this year compared with in 2019, according to the tour operator.
Annual flight capacity is expected to grow by another 1.6 million seats by 2025, reaching a total of five million.
Heathrow Airport announced on Friday that July was its busiest ever month for departures to Turkey, with more than 73,000 people flying to the country.
Airline Jet2 PLC recently revealed its flying programme to Turkey is three times larger than in 2018.
Antalya, known for its blue waters and stunning coastline, is the most popular Turkish location among On The Beach customers, while Hurghada on the Red Sea coast leads the way for Egypt bookings.
Turkey was the company's third most-booked overall destination for summer holidays.
The Canary Islands took top spot, followed by mainland Spain.
On the Beach Chief Customer Officer Zoe Harris said: "The top location for holidaymakers this holiday season is the Canaries, followed closely by Spain.
"Spain had a slight decline in bookings last year, however this year it's back with a notable increase in bookings compared to 2019.
"The destinations to watch out for are Turkey and Egypt.
"They are rising the ranks at a rapid rate of knots.
"We expect to see these two destinations to continue to rise and challenge for the Canaries top spot next year."
source: PA
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Mr Tibbs
I presume those who do not mind tummy bugs will take the risk. Much prefer the Canaries and staying well.
Tony
All Brics member countries have China as their main trading partner and little trade with each other. Pegging to the renminbi and aligning their bilateral exchange rates would be the first major step. At the same time, a mechanism would have to be set up to provide credit in renminbi to countries that run trade deficits, such as India and South Africa. An organisation similar to the EPU and a management agent like the BIS would have to be established.
China would have to shoulder the burden to keep such a clearing system afloat. This means setting up the mechanism and institutions, providing sufficient funds to support a liquidity shortfall and providing a reserve facility to deposit surplus funds. In addition, it would need to remove obstacles to the fungibility of the Renminbi as surplus supply of other currencies should be freely converted into Renminbi and used by other countries, eliminating the problem highlighted by Lavrov.
All this would boost the internationalisation of the renminbi and increase the pressure on China to liberalise its financial account. Both have major ramifications for the country’s domestic monetary policy. China is already coming to terms with the fallout from using its currency swap agreements to prop up countries in payments difficulties. So far, China is a long way from the benign neglect which the US adopted to help the Europeans establish their own multilateral clearing system and currency.
Aug 14th 2023
Russian diplomat Roman Babushkin confirmed that BRICS is developing a new payment system to end reliance on the U.S. dollar. The new payment mechanism will use local currencies for cross-border transactions and mutual settlements among BRICS members. The development aligns with the changing global dynamics and fosters the growth of the BRICS member’s respective local currencies.
“A BRICS payment instrument based on the currency basket would help to carry out mutual settlements without any reliance on the US dollar,” he said. However, he cautioned that creating a new currency needs more work and research, and the alliance is not prepared for it yet. “These ideas demonstrate new tendencies; however, it’s clear that a lot of aspects require in-depth study,” he said.
Babushkin explained that the payment system will provide seamless mutual settlements among the member countries. He added that BRICS will soon liberate itself from the U.S. dollar and end dependence on it.
“With over one-third of the world’s GDP, a total population of around 3 billion people, and a strong desire of other states to join its activities, it is safe to say that BRICS has become an integral element of an evolving multipolar paradigm,” he said.
See no problems indeed, to our cost all in the past shareholders were given of the impression that the supply of subsidised diesel at the same rate as that supplied the Egyptian people would continue Centamin was using diesel at the subsidised rate, when this was price subsidy withdrawn by the he Egyptian government due to the T&C of an IMF loan, shareholders were told that the company solicitors said that it had a strong case to get the subsidy reinstated by the courts, the case went on for around 10 years and the court ruled in favour of the withdrawal. this Increased AISC
So moral of this experience is that things change on daily basis in Egypt and nothing is guaranteed , what if Centamin makes millions of dollars investment to link up to the grid of cheaper electricity and then its decided that a foreign company shouldn't be enjoying the same cheap electricity as the Egyptian people
and who takes priority if the grid i doesn't have the capacity to supply both parties?
There needs to be some serious considerations into he feasibility and investment required by the company to link into what may be a sporadic or unreliable supply with no guarantee that the electricity will be cheaper!
The problem Egypt has is the extreme El Nino year. 40 c and higher.
Every man and his dog using vast amount of power at mid day.
Most of Europe the same ,except they are linked to other power plants in Europe.
Another month or so no problems.
There's always something that crops up when I invest in anything. Had been out of CEY for years but thought it now looked investable. Simply wall street indicates that it'll get back above £1 at least. Analysts were bullish on Centamin a few months back but I held off then.
Robina
Centamin should do well in Q1 2024. 20-30% bagger on today's price imop. We should have lots of new reserves and resources being reported. Tony
Climate projections show that Egypt will continue to experience a higher level of warming than the world average.1 Compared with the pre-industrial period, temperatures in 2081-2100 could be around 2.5°C higher in a low-emissions scenario2 and around 6°C in a high-emissions scenario.3 The warming, coupled with urbanisation and population growth, is expected to trigger a significant increase in extreme heat events and electricity demand for cooling.
The combination of increasing electricity consumption for cooling and decreasing generation efficiency from gas, solar and wind power plants could add strain to Egypt’s electricity systems. Climate resilience measures could help its electricity systems cope better with the adverse impacts of rising temperatures and heatwaves; possible examples include incorporating climate impact assessment into energy planning, additional cooling systems for thermal power plants, innovative design to cope with higher temperatures, improved energy efficiency and behavioural change.
https://www.iea.org/reports/climate-resilience-for-energy-transition-in-egypt
Mr T, in that report on the climate there are to many "shoulds".
Why are you bothered you and everyone here now reading this "should " be gone forever.
Just doom and gloom ,not even considering future improvements in technology.
Mother Earth has coped with climate change for millions of years,and coped very well.
Mother Erath has been so badly damaged by Mankind's greed and stupidity that it may not be able to cope this time!
No point concerning ourselves with Centamin because ihe share price is well and truly buggered anyway until the AiSC are drastically reduced !
Humans have caused major climate changes to happen already, and we have set in motion more changes still. However, if we stopped emitting greenhouse gases today, the rise in global temperatures would begin to flatten within a few years. Temperatures would then plateau but remain well-elevated for many, many centuries. There is a time lag between what we do and when we feel it, but that lag is less than a decade.
While the effects of human activities on Earth's climate to date are irreversible on the timescale of humans alive today, every little bit of avoided future temperature increases results in less warming that would otherwise persist for essentially forever. The benefits of reduced greenhouse gas emissions occur on the same timescale as the political decisions that lead to those reductions.
https://t.ly/pQ1tA
Mr T
The elephant in the room are humans exhaling carbon dioxide. 7 billion people exhale 1.7 gigatons into the atmosphere equivalent to 7% of that amount released by fossil fuels each person released 2.3 pounds (0.66kg) of carbon a day. I am just waiting for the mayor of London to levy a baby tax and exhaled air tax for adults for impacting the climate by just breathing. They might have an extra tax for people who go out running and produce more carbon dioxide. Tony.