Morning Mumble: PLUS (Again), CEY's expectations in the future despite lower grades & more gold + Copper via TRQ +++Peppa Pig's owners...

Good Morning,

Yesterday's debacle has more repercussions than PLUS I think thought possible. One thing that "punters" should consider is the not so obvious "suitability questionnaire." As its common to kick a dog when it’s down, although things may not appear as bad as they first appear, there are questions that have been raised about Plus500's business model.

Having opened an account with PLUS with little more than a couple of clicks and trading was available. The notable difference was the lack of "proof of identity including the suitability" of product questionnaires. Somewhat of a large requirement and perhaps the main reason for the average revenue per user (ARPU) and no doubt the need for an increase in Average User Acquisition Cost (AUAC). Irrespective, thinking outside the box, if one has not completed a suitability questionnaire and has taken a loss, could this be misselling or similar? Perhaps even a fine. 

PLUS is something to watch as it unravels, both from a trading perspective but more so, if you held long, one assumes you a) trialled the product b) understood their procedures and c) were aware of the "Anti-Money Laundering (AML)" issues that were signalled on FTML and via Dan McCrum (if memory serves me correctly) last year. In addition to all the issues raised over the past 6-12 months. 

Two funds are clearly much better informed than us bears or they would not have been acquiring whilst the AML process was commenced a week ago, advertised on Facebook (yes no joke) and Twitter. 

Centamin (CEY), it would be wise for holders to catch up with the coverage today via a live webcast from 12:30pm 19th May 2015 for Capital Markets. The gist of it can be found, webcast slide presentation. With grades currently being below reserve average, one wonders how costs can be reduced! Perhaps CEY can enlighten us this afternoon. The sell is on mine life, but with limited cash returns at these levels its hard to get excited, unless of course another project starts to bear fruit. With limited exploration of the underground mining, its very hard to be confident with the 6g/t. If one was sceptical it looks more like a copy and paste job, 2016-19. See Page 26 onwards. 

We have another webcast in near 5 hours (3pm our time) from Turquoise Hill (TSX:TRQ & NYSE:TRQ) with an update on Oyu Tolgoi Underground Mine Development and Financing Plan. Up near 50% in 5 months it was wise to take all capital out on the rally. As the EMC covered in April, EMC: TRQ (Had investors paid attention to TRP as well they'd have saved around 90% of their monies!). 

As if by magic just a few days after their Q1 (& EMC: CMCL resource commentary), Caledonia Mining (CMCL) come out with a  resource upgrade, adding 491,000 tonnes from the Inferred to Indicated Resource categories and to add 47,000 tonnes of new inventory to Indicated Resource. With the price movement somewhat justified today, although please note its at depth its better than nothing! Obviously with Zimbabwean geo-political risks including the change from Chamber of Mines to the fidelity agreement. its not without its cons including grades. It wouldn't be a display of over-confidence for the small fry analysts to turn bullish (over the longer-term), although one eye needs to be kept on the Zimbabwean leadership! 

No time sadly for Entertainment One (ETO) full year Results, although disappointing film revenues that were rescued by Peppa and Co. Whether ETO can rescue the declines in film revenue is yet to be scene with four films in production, and some disappointment, the upside is there within family (read as kids) entertainment, where Peppa is "in America and soon to be in China."  Although its hard to find any justification for a share price above 360.

Atb Fraser