According to Reuters, Egypt’s shares concentrated on gold miner Centamin Plc dropped 21% after the company said an advisory body had made disapproving recommendations to the court that will choose the outcome of its single functioning mine.
Centamin is interesting the Supreme Administrative Court of Egypt to reverse the judgment by another court to cancel its lease for the Sukari gold mine in Egypt’s Eastern Desert. The Sukari mine produced 262,958 ounces of gold last year and is ongoing to operate normally until the final result of the court process, Centamin stated.
Centamin, which has a market capitalization of approximately $780 million, stated the first request reach would be on June 19. It added that the Egyptian State Commissioner’s Office had given a report containing non-binding recommendations for the court. Centamin said “not positive” on these recommendations. On Friday morning, the Company’s stock was the biggest percentage loser on the FTSE-350 index.
“We see (the recommendations) as having no bearing on how we’ll progress our appeal process.” Centamin Chairman Josef El-Raghy said on the phone to Reuters. He declined to expose information about the recommendations in the report. The State Commissioner’s Office was not available for comment on Friday, a weekend in Egypt.
Egypt has experienced disorder in political and economic for more than two years since the revolution on the President Hosni Mubarak, slaughter of foreign investment and provoking budget and currency crises.
In March, Centamin, also recorded on the Toronto Stock Exchange, that it estimated the Sukari mine to produce 320,000 ounces of gold in 2013, 22 percent more than last year. The mine is located 700 km (440 miles) from Cairo.