Back to the complete issue
Thursday, 22 October 2020

Trouble at Egypt’s Sukkari mine sends Centamin’s share price tumbling

Trouble at Sukkari sends Centamin’s share price tumbling: Australian gold miner Centamin’s share price plummeted 19.2% yesterday after the company announced in its 3Q earnings release (pdf) that its Sukkari mine’s Stage 4 open pit would remain out of action until 2H2021 following a safety incident earlier this month. The London-listed company’s shares dropped to GBP 1.313 from GBP 1.625 during trading after the news raised concerns about the company’s profitability. The company said earlier this month that output would fall 42% as a result of the delays, and is now forecasting a drop in its 2021 production to 400-430k oz compared to its projected 445-455k oz this year.

In other Centamin news: The company bid for exploration licenses in four concessions in the government’s tender earlier this year, Al Mal reports. The company is competing with Barrick Gold and La Mancha in the tender, which saw 320 blocks up for auction in the first tender since 2017.

CORRECTION- 27 October 2020

An earlier version of this story incorrectly said the entire Sukkari mine would be out of action until 2H2021. 

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.