Nevsun Declines After Reports of Possible Eritrea CoupLiezel Hill
Nevsun Resources Ltd., the operator of a mine in Eritrea, fell the most in six months after reports of a possible coup in the East African nation.
Nevsun dropped 8.7 percent to C$4.22 at the close in Toronto, the most since July 10.
Nevsun’s Bisha mine is operating normally, the Vancouver-based company said today in a statement. 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.
“We have received confirmation that the city is calm,” Nevsun said in the statement.
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.