- 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.
For further details see:
Centamin: A Disappointing Reserve Update