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Egyptian court ruling sends Centamin shares tumbling

Gold producer sees London-traded stocks lose over a third of their value after Cairo court removes its operation rights for a local mine

Reuters, Tuesday 30 Oct 2012
Views: 1089
Views: 1089

Gold producer Centamin saw more than a third of its stockmarket value wiped out on Tuesday before trading was suspended, after an Egyptian court said its right to operate the Sukari mine, its main asset, was invalid.

Centamin later said that operations were continuing and that the Egyptian administrative court did not have jurisidiction over its mining rights. 
The company's London-listed shares plunged to their lowest level for three years earlier in the day, dropping almost 60 per cent before recovering some ground to last trade down 35 per cent at 64 pence when trading was suspended at 1000 GMT.
Courts in Egypt have challenged a number of contracts reached during the rule of Hosni Mubarak who was ousted last year, adding to investor worries at a time when the government is trying to revive confidence in the economy.
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