Celtic resources

Version Française

February 3rd, 2004

All the figures given here arise from the Web site of Celtic, they thus are to be taken with precaution, it is a sort of summary of the information available on the site of Celtic.
Celtic is too much forgotten, it seems to me, I do not make AT on this value, the quotation is too recent. it has resources of more than 30 million ounces of gold, the exploitation is situated in Kazakhstan and in Russia.
Rib in London under the code CER Celtic resource and it is an English company.

I. Production and production cost:

In his presentation of the company Celtic give the following figures for what of the exploitation and the production costs of the gold :

2003 60 000 (production cost = \$224 / oz)
2004 153 000 (production cost = \$185 / oz)
2005 340 000 (production cost = \$140 / oz)
2006 442 000 (production cost = \$137 / oz)
2007 506 000 (production cost = \$118 / oz)
2008 673 000 (production cost = \$103 / oz)
If the exploitation remains at the level of 2003 it gives around thirty years of exploitation of his gold reserves.

Small fast calculation:
I took a price of the ounce in \$400 and I then deducted the golden value of the production cost.

2003 60 000*400 = 24 millions - 13.4 millions = 10.56 millions \$.
2004 153 000*400 = 61.2 millions - 28.3 millions = 32.895 millions \$.
2005 340 000*400 = 136 millions - 47.6 millions = 88.4 millions \$.
2006 442 000*400 = 176.8 millions - 60.5 millions = 116.2 millions \$.
2007 506 000*400 = 202.4 millions - 59.7 millions = 142.6 millions \$.
2008 673 000* 400 = 269.2 millions - 69.3 millions = 199.8 millions \$.

The company is already profitable in 2003.: it gives 577 million dollars of incomes from 2003 till 2008 after subtraction of the blow of production of the gold, knowing that are not counted the incomes of the enormous site of molybdène, some Copper, as some petroleum and gases and that the current valuation in stock exchange is 270 million dollars.

Graph of the production gold at least the production costs of 2003à 2008.

II. The important assets(active persons) of Celtic:

Nezhdaninskoye:
It is reserves of 29 million ounces of gold (Au) and 100 million ounces of silver(Ag).

Suzdal:
It is 1.5 million ounces of gold reserves (Au).

Zherek: it belongs to 75 % to Celtic and has reserves of 675 000 ounces of gold (Au).

The deposit of molybdène (Mo) from Kazakhstan: this deposit belongs to 65 % to Celtic, what gives reserves of the order of 750 000 tons of molybdène (Mo) for Celtic. There is so a little Copper ( Cu) on this site.

There is besides the reserves of petroleum and gas, afterward the interests in the gold and the petroleum, gases should be separated in two companies where Celtic will remain majority.

Balance:

31 175 000 ounces of gold (Au) X \$400.2 / l'once = 12 476 millions us.

750 000 tonnnes of molybdène (Mo) X \$5600 / tons = 2 730 millions \$ us (65 %).

74 800 tons of brass instruments ( Cu ) X \$2539 / tons = 189 millions us.

What gives a total of 16 000 millions us for a market capitalization of 270 millions us. The ratio capitalization reserves is 59, for \$1 of action there is \$59 of reserves.

It is necessary to add to it Hydrocarbons of Kazakhstan and the United Kingdom, the future company seems to want to register 50 million barrels of petroleum.

There are also projects of investigation:

Kentau Exploration (100 %): investigation in the gold (Au) in the South of Kazakhstan.

Auliye Ressources (74.25 %): investigation in the gold (Au) in the South of Kazakhstan.

Dostyk (80 %): investigation in the gold (Au) and the copper ( Cu) in the centre of Kazakhstan.

To summarize, I would say that Celtic seems to be an excellent mining company (from a pure point of view of the reserves). The main risk is above all geographic, but it also makes its force, Russia and Kazakhstan are last El Dorado of the materials 1eres.
The resources it Au, Mo, Cu, petroleum and gas allows Celtic to have a diversified profile which reassures.

It is the company which I advise for the long term (from 2 to 6 years), with all the precautions of manners (this is only my opinion and I can have been deceived on figures, or myself to have made a mistake in the interpretation of the information of the Web site of Celtic).

Thomas Chaize

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