Centamin down on Egypt concerns

Shares in gold miner Centamin were down sharply on Monday after it warned exports from its suspended Egypt operation were needed soon to ensure it met working capital commitments.

Shares in gold miner Centamin were down sharply on Monday after it warned exports from its suspended Egypt operation were needed soon to ensure it met working capital commitments.

The company stopped gold exports after an Egyptian court declared its Sukari mining concession void.

That ruling was subsequently changed but problems remain after Centamin failed to disclose the necessary written approval from a government minister (Minister of Petroleum and Mineral Resources) to the court.

Advertisement - Article continues below

Therefore the court deemed the company could not yet have its "exploitation lease".

Sukari is Centamin's primary source of revenue in Egypt.

The firm has now filed an appeal against the judgement through its subsidiary Pharaoh Gold Mines.

"The company took the decision to suspend gold exports pending the lodgement of the appeal," its statement said.

"As the appeal is now being lodged we are preparing to resume exports.

"The company manages its working capital in country through gold sales and consequently a gold shipment is required shortly to ensure that on-going working capital commitments can be met."

That note of urgency seemed to scare investors, who pushed shares down 7.5% by 09:00.



Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular


House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020

Have small companies lost their edge?

SPONSORED CONTENT – The tectonic plates beneath the modern investing landscape appear to have started moving in new directions
26 Jun 2020