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Centamin plummets on Egypt court ruling

An administrative court in Egypt has annulled Centamin's mining licence, with the company denying the court has the jurisdiction to do so
October 31, 2012

Shares in Egypt-focused gold miner Centamin (CEY) fell more than a third before being suspended from trading, following a surprise Egyptian administrative court ruling that annulled its mining licence.

IC TIP: Hold at 64p

Press reports say a court case against Centamin had been brought by Hamdy Fakharany, a lawyer or engineer who alleged that Egypt's returns from the mine were not high enough. Centamin released a brief media statement challenging press reports, stating the administrative court "does not have jurisdiction to cancel [the licence]" and that it was not a party to the case.

Centamin's mining operations continue unimpeded at its Sukari gold mine in the country, reportedly with the support of the Egyptian Mineral Resources Authority.