Centamin, the Egypt-focused gold miner, has regained further ground after its slump last week.
The company announced on Thursday it had suspended operations at its only producing mine, Sukari, after a dispute with a supplier left it with insufficient diesel. Working capital was also showing a shortfall after gold shipments were halted by customs officials.
Its shares slumped from 52.7p to 27.7p, but recovered somewhat on Friday when it said the diesel dispute had been resolved.
Now they have moved 8.58p higher to 43.22p after Centamin said the customs ban had now been lifted, and a shipment of gold was made on Sunday, paving the way for Sukari to reopen. It said:
We expect both fuel supply and normal operations at Sukari to resume in the coming days, once payment for the latest shipment has been received and working capital in the operation company has subsequently been replenished.
Kate Craig at Liberum Capital said:
[This is] clearly positive for the stock today. Around one week's production has been lost, earnings downgrades to follow.
Numis added:
Two issues resolved...now just the court case [over whether its rights over Sukari are valid], although the wider Egyptian political instability remains. Our recommendation remains under review while we work through any potential affects to results but the shares should take another jump up this morning.
Meanwhile Capital Drilling, which supplies rigs and counts Centamin as a key customer, has climbed 9.5% to 21.5p after being hit by the disputes.
