Centamin Rises 25% as Sukari Shipment Resumes
LONDON -- Shares in Centamin lifted a further 25% in early morning trading following the news that customs has lifted its halt on gold exports from the Sukari mine in Egypt.
The statement confirmed that a shipment was made yesterday, and that the gold miner expects "both fuel supply and normal operations... to resume in the coming days, once payment for the latest shipment has been received and working capital in the operating company, Sukari Gold Mines, has subsequently been replenished."
The news is another boost for Centamin, after a suspension was lifted that had caused its fuel supplier Chevron to be unable to supply fuel to Sukari. The shutdown of the Egyptian mine -- which Centamin admitted had been placed "on care and maintenance" until the issues were resolved -- caused the shares to plummet more than 60% in one day, from 52 pence down to 30 pence. Once the suspension was lifted, however, the shares rebounded to 34.64 pence on Friday's close.
Today's announcement, and subsequent boost in the share price, has added another 8.74 pence (25.2%) onto the shares at the time of writing, leaving them standing at 43.38 pence currently.
So, more good news for investors who bought into Centamin at the bottom of the recent price crash. However, the share price has yet to regain all of its value prior to the plunge, and the question whether the potential for recovery makes Centamin a buy remains your decision.
Indeed, you may wish to consult this free Motley Fool report, which explains how betting on battered shares can provide wonderful gains... if the underlying company recovers. To put a possible turnaround into perspective, Centamin's shares reached a peak of 197 pence before the Egyptian troubles erupted.link
The article Centamin Rises 25% as Sukari Shipment Resumes originally appeared on Fool.com.Sam Robson does not own any share mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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