Nevsun Declines After Reports of Eritrea Coup

Nevsun Resources Ltd. (NSU), the operator of a mine in Eritrea, fell the most in eight months after reports of a coup in the East African nation.

Nevsun dropped 8.7 percent to C$4.22 at 11:47 a.m. in Toronto. The Vancouver-based company earlier dropped 11 percent, the most intraday since May 15.

Nevsun has been informed that its Bisha mine is operating normally, Arlen Hansen, an external consultant to the company, said today by e-mail. About 200 Eritrean soldiers mutinied and stormed a Ministry of Information building in the capital, Asmara, according to Agence France-Presse. The report cited an unidentified diplomat in Nairobi.

Nevsun produced 313,000 ounces of gold last year, it said Jan. 9. That compared with an Aug. 8 forecast of 280,000 to 300,000 ounces.

The company is building a copper plant and expects to start concentrate production about mid-year, while gold output at Bisha will stop at the end of the second quarter, Nevsun said Jan. 9.

To contact the reporter on this story: Liezel Hill in Toronto at lhill30@bloomberg.net

To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net; Steven Frank at sfrank9@bloomberg.net

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