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

How to profit from India’s high-tech recovery
Share tips

How to profit from India’s high-tech recovery

Professional investor David Cornell of the India Capital Growth Fund, selects three of his favourite Indian stocks to buy now.
27 Sep 2021
Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
What really causes inflation? Here’s what prices since 1970 tell us
Inflation

What really causes inflation? Here’s what prices since 1970 tell us

As UK inflation hits 3.2%, Dominic Frisby compares the cost of living 50 years ago with that of today, and explains how debt drives prices higher.
15 Sep 2021