Centamin shares rise on gold prices, director dealing

Centamin shares surged Friday as gold prices improved and a director acquired a further stake in the Egypt-focused miner.

Centamin shares surged Friday as gold prices improved and a director acquired a further stake in the Egypt-focused miner.

The price of gold received a boost following the strong selling pressure seen earlier in the week. The yellow metal had been trading near steady levels just ahead of the release of surprisingly weak US payroll figures Friday afternoon.

June Comex gold last traded up $11.50 at $1,563.90 an ounce. Spot gold was last quoted up $9.60 at $1,563.75.

The market learned that Mark Bankes, Non Executive Director, on Friday bought 30,000 shares in Centamin at a price of 42.92p, bringing his total holding to 120,000.

Shares were also shooting up after hitting a nine-month low Thursday, which had seen the shares enter so-called 'oversold' territory.

The above also came on the heels of a downgrade yesterday from analysts at Canaccord Genuity, who lowered their rating from 'buy' to 'sell'.

"Although financial results released last week were relatively strong the key decision on the validity of the Sukari mining license is fairly distant," the broker said.

"The Egyptian judicial system continues to be affected by political instability and we now expect the final court ruling to take around 12 months to be released. This puts a lid on the upside and creates room for potential negative news flow and media speculation during 2013," Canaccord added.

Last week Centamin announced a 30% rise in full-year gold production which helped push pre-tax profit up to $198.6m from $194m previously.

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Lab-grown meat: how “moo’s law” will drive innovation
Soft commodities

Lab-grown meat: how “moo’s law” will drive innovation

Jim Mellon and Anthony Chow, co-founders of Aim-listed Agronomics, explain why they believe that “cellular agriculture” will benefit from massive long…
16 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Lab-grown meat: the new agricultural revolution
Soft commodities

Lab-grown meat: the new agricultural revolution

Vegan alternatives are taking off, but the future of food technology lies in lab-grown meat – cultivating steaks and burgers from animal cells, says A…
16 Apr 2021