Centamin Has Biggest Two-Day Gain in London as Output to Resume
Centamin Plc (CEY) had its biggest two-day gain on record in London trading after saying normal operations would resume within days at its Sukari mine in Egypt after a dispute over diesel supplies that halted operations.
Centamin advanced as much as 29 percent, adding to a 25 percent jump on the last trading day on Dec. 14. The company said today that it expects fuel supplies and normal operations to restart in “coming days.” A halt by customs on the mine’s gold exports has also ended and a shipment was made yesterday.
The producer has been in dispute with state-run Egyptian General Petroleum Corp., which is claiming $65 million in back payments for subsidised diesel supplied from December 2009 to January 2012. The dispute is now in court, said Andy Davidson, Centamin’s investor relations manager, by phone last week.
The company, based in Mount Pleasant, Australia, has been dogged by operational and political delays in Egypt since last year’s political uprising in the country. Centamin fell as much as 59 percent Oct. 30 after Egypt’s administrative court issued a preliminary ruling to annul an 18-year-old concession accord with the government. Its joint-venture partner, the state-owned Mineral Resources Authority, said it would appeal the decision.
The gold producer also temporarily halted mining in March and July because of labor unrest related to a pay dispute.
It rose 26 percent to 43.55 pence by 9:12 a.m. in London.
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