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.

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.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

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.