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Polite and Professional. Thank you Alex!
For those who haven't been following the thread it was regarding the GREATER Sukari area seismic survey in 2018/2019.
An excerpt from Alex reply:
"The quality of the data was inconclusive and the capital cost to complete the 3D survey was approximately an additional US$7m."
"With the arrival of the new Board and Management team, in H1 2020 all non-essential capital projects were halted subject to several reviews –"
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My Thoughts:
I preface this with the acknowledgement that Centamin's IR team isn't responsible for the actions of the BOD or former CEO. So my criticism/questions that follow are directed at the board who were present during 2018 until this day - not Mr Horgan or the IR team
1) Why are we just learning about this now - after someone asks? If the data was inconclusive let the market know. Seismic surveys are not magic - the data is interpreted - i.e. expect competing interpretations.
Also, what are the reasons the survey was deemed inconclusive? Who did the survey? Are they reputable? If there was an issue on the survey's implementation was a 'redo' requested? These things aren't cheap - how much did it cost?
1b) Considering the questionable nature of the multi-year drilling campaign we apparently got from Batie West - is there a pattern of shoddy hires and projects not being carried out to a satisfactory completion? Who on the BOD is taking responsibility?
2) The timeline of when this seismic work was carried out 2018/2019 vs when non-essential capital projects were put on hold mid 2020 does not line up. Obviously the decision to NOT spend the extra $7 million to complete the survey was taken well before Horgan's arrival sometime in 2019. By whom? Andrew Pardey? The former CEO who the BOD said retired without a word of explanation? The former CEO who is far from retired - now in control of multiple gold miners?
None of this secrecy bodes well for the company going forward. If we can't trust the current BOD's decision making or their willingness to advise shareholders of money spent on botched projects then we need a new slate of directors. Too many mysteries. To many dropped balls.
As it is too many Centamin shareholders accept the BOD's zero accountability - simply shrug their shoulders and bury their heads.
*** I would hope other shareholders would repeat my call to press Centamin to
1) release the damn seismic survey results
2) explain why the results are/were deemed inconclusive and unworthy of completion (and who deemed them so)
3) tell us if there are plans to get a proper seismic survey done.
As Goldgnome pointed out - seismic surveys are FAR more detailed and precise at unlocking the underground geology than an airborne survey (which is now in the works) the comparison is like apples to watermelons
1) Why are we just learning about this now - after someone asks? If the data was inconclusive let the market know. Seismic surveys are not magic - the data is interpreted - i.e. expect competing interpretations. THEY MAYBE CCONFUSED IN THEIR REPLY. IF THE DATA QUALITY WAS NOT GOOD THEN THIS IS A FUNDAMENTAL PROBLEM WITH THE CONTRACT AND CONTRACTOR.
Also, what are the reasons the survey was deemed inconclusive? Who did the survey? Are they reputable? If there was an issue on the survey's implementation was a 'redo' requested? These things aren't cheap - how much did it cost?
THE CONTRACTOR WAS REPORTEDLY A GROUP CALLED HISEIS, WHO HAVE SHOT MANY HARD ROCK SEISMIC SURVEYS. THE DATA COULD HOWEVER BE INAPPROPRIATELY PROCESSED. IF THIS IS THE CASE THEN THEY CAN GO TO ANOTHER PROCESSING HOUSE AND GET IT DONE PROPERLY UNDER PROPER SUPERVISION. IF THEY DONT KNOW HOW TO INTERPRET THE RESULTS AND INTERGARTE THEM WITH OTHER DAT SETS, THEN AGAIN THERE ARE A FEW WHP DO GREAT WORK.
https://www.earthdoc.org/content/papers/10.3997/2214-4609.201802731
1b) Considering the questionable nature of the multi-year drilling campaign we apparently got from Batie West - is there a pattern of shoddy hires and projects not being carried out to a satisfactory completion? Who on the BOD is taking responsibility? SHODDY HIRES IS PROBABLY ON THE RIGHT ROAD. THE PAST BOD TOOK LITTLE REPSONSIBILITY OBVIOUSLY.
2) The timeline of when this seismic work was carried out 2018/2019 vs when non-essential capital projects were put on hold mid 2020 does not line up. Obviously the decision to NOT spend the extra $7 million to complete the survey was taken well before Horgan's arrival sometime in 2019. By whom? Andrew Pardey? The former CEO who the BOD said retired without a word of explanation? The former CEO who is far from retired - now in control of multiple gold miners?
THANKS GOODNESS HE HAS RETIRED FROM CENTAMIN. THIS WAS DONE ON HIS WATCH AND HE HAD ULTIMATE RESPONSIBILITY FOR THIS MAJOR EXPENSE ITEM. I AM SURE HE KNOWS NEXT TO NOTHING ABOUT SEISMIC, JUST PROBABLY SEEMED LIKE A GOOD IDEA AT THE TIME, SOLD BY THE SNAKEOIL GUYS.
None of this secrecy bodes well for the company going forward. If we can't trust the current BOD's decision making or their willingness to advise shareholders of money spent on botched projects then we need a new slate of directors. Too many mysteries. To many dropped balls.
THE BOD HAS NO REAL WORLD EXPERIENCE IN EXPLORATION. GIVEN THEY WANT TO HAVE ORGANIC GROWTH THEN THIS IS AN OMISSION, TOO MANY SEAT WARMERS AND GENDER BALANCE.
As it is too many Centamin shareholders accept the BOD's zero accountability - simply shrug their shoulders and bury their heads.
*** I would hope other shareholders would repeat my call to press Centamin to
1) release the damn seismic survey results BETTER TO GO TO SOMEONE WHO KNOWS WHAT TO DO WITH THIS DATA, AND INTERPRET AND INTERGRATE THE RESULTS, AND THEN TARGET ASSESSMENT//...
2) explain why the results are/were deemed inconclusive and unworthy of completion (and who deemed them so) YES
3) tell us if there are plans to get a proper seismic survey ... THERE ARE BETTER EXPLORATION FLOWS THAT I WOULD PUT IN PLACE THAN DOING VERY EXPENSIVE 3D SEISMIC. IF THEY DONT KNOW WHAT THESE ARE THEY SHOULD GO TO PEOPLE WHO DO...THESE PEOPLE EXIST.
IN GENERAL, THE MINING AND EXPLORATION INDUSTRY HAVE A TERRIFIC PROPENSITY FOR BURYING FAILED EXPERIMENTS, AND IT IS A MAJOR REASON WHY THEY DONT LEARN AND GET A LOT SMARTER. IN ADDITION THEY ARE FAILING TO PROJECT THEMSELVES AS AN INDUSTRY OF ANY ATTRACTION TO THE YOUNG SMART PEOPLE, AND LETS FACE IT IF YOU ARE GOOD AT MATHEMATICS OR ENGINEERING FAR BETTER TO GET INTO FINANCE, INVESTMENT BANKING OR ALIKE...SO THERE IS A LACK OF REAL TALENT IN THE INDUSTRY AND IT IS GETTING WORSE WHEN IT SHOULD BE GOING THE OTHER WAY...
REGARDS
THE GNOME
Thank you Goldgnome for the additional info and valuable comments!
I did send Alex at Centamin IR a follow up to her reply asking that she look into these outstanding questions. I'll post whatever response I receive.
But as you say - the seismic data already attained may still hold tremendous value. Similar to what Mr Horgan did when the historical Sukari drill samples were relogged and new insights were gained.
Bottom line - an expensive but mysteriously near-completed seismic survey is certainly not a trivial topic but pivotal to expanding Centamin's geological knowledge base beyond the current open pit & underground. Why would the BOD now sweep it under the table or dismiss it?