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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. 

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