EDVMF - Centamin: A Disappointing Reserve Update

• Centamin released its FY2020 Reserve & Resource statement last month, with a significant drop in the company's mineral reserve base.
• This was despite the fact that metals price assumptions were much higher year-over-year, up from $1,300/oz to $1,450/oz.
• The good news is that this reserve still supports a more than 11-year mine life at a ~450,000-ounce run rate, and the company has the cash to aggressively drill.
• However, at a valuation of more than ~$300.00 per reserve ounce for a single-asset Tier-3 jurisdiction producer, I think there are much safer bets elsewhere in the sector, so I'm moving from bullish to neutral.

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