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Tuesday, 27 July 2021

Gold producer Centamin gains on comments by Egyptian minister

Centamin PLC puts in strong performance on London stock exchange after petroleum minister declares end to disputes between authorities and the firm

Reuters and Ahram Online, Friday 11 Jan 2013
Sukari gold mine
Sukari gold mine, Centamin's largest asset (Photo:Reuters)

Shares in gold miner Centamin jump 10 per cent at the London Stock Exchange, with traders citing a "positive" interview on Egyptian television which saw the country's petroleum minister lending his support to the company which has in recent months been rocked by interference from authorities.

Egypt's Petroleum Minister, Osama Kamal, told a programme on Egypt's CBC channel this week that the country's agreement with Centamin was a "good model." He added that he was keen for the relationship between Egypt and Centamin to continue.

Since October Centamin has been plagued by troubles in Egypt. A court has questioned its right to produce gold at Sukari, its sole-producing mine, customs officials have held up exports and the country's petroleum ministry has disrupted fuel supplies.

Shares in Centamin have gained 44 per cent since Monday after gold exports from Egypt resumed and the company posted annual production which came in 5 percent ahead of guidance, showing its resilience to the problems it has been facing in Egypt.

Egypt's largest gold producer was compelled to halt production in October and December of 2012, following disputes with the Egyptian government over diesel fuel supply and gold exports.

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