RECORD quarterly production was not enough to stop gold miner Centamin’s share price sliding over five per cent yesterday, as uncertainty around legal cases and Egypt’s civil unrest continues to shake investors.
Gold production rose eight per cent quarter-on-quarter to 93,624oz. However, earnings fell 22 per cent to $63.7m (£41.1m), mainly due to the declining gold price.
A court case over the validity of a mining licence in Egypt is ongoing with no timeframe for completion, which Canaccord Genuity said is the “key overhang” on the miner.
“There is no doubt that the share price took a significant hit with the original ruling,” Andy Davidson, head of business development and investor relations, told City A.M. “I would expect a similarly large impact on the price once the case is tied up.” He said the latest wave of civil unrest in Egypt had not impacted operations.
Shares closed 3.9 per cent lower.