CEY is a gold mining company operating in Egypt. It was ordered by the Egyptian Government to stop drilling pending a legal dispute brought against the company by a government minister.

Since then, the whole Government cabinet was replaced a few months ago and the minister now in charge of Mining is believed to be positive on Western investment in the country. CEY are pushing for this minister to allow them to continue drilling ASAP; investers are waiting....patiently.

As soon as the company gets the go-ahead to continue drilling, the share price will move north; CEY has plenty of gold in this mine and it is (apparantly) the case of "raking" it out rather than drilling for it!

Check them out...worthy of a punt.

CEY will do much better with democracy

By Thomas Biesheuvel

Feb. 22 (Bloomberg) -- Centamin Egypt Ltd., a gold company operating in the North African country, said its Sukari mine is functioning normally following a protest last week.

Sukari has been back to normal since Saturday morning, and mining and processing are continuing as normal, Bobby Morse, a London-based company spokesman, said today by phone.

Workers at the Sukari site staged a sit-in last week to demand higher pay and a change of ownership, state news service MENA reported Feb. 18. The companys shares fell the most in more than two years that day.

The stock fell 2.9 percent to 125.6 pence by the 4:30 p.m. close of London trading after rebounding 5.8 percent yesterday.

To contact the reporter on this story: Thomas Biesheuvel in London at tbiesheuvel@bloomberg.net

To contact the editor responsible for this story: Amanda Jordan at ajordan11@bloomberg.net

Last Updated: February 22, 2011 12:38 EST


http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aTk6iIAW2.Xw

Like a South African democracy with its empowerment policy and strong unions.

irlee57 ,

That's old news

Usually turmoil = gold rising sharply = good news for cey. Just topped up again.

RNS looks good.

It's at bargain price now.

.

Indeed...very good update.....should be 30p higher at least !.

SUKARI GOLD EXPORTS

TIDMCEY

RNS Number : 9456B

Centamin Egypt Limited

28 February 2011

Centamin Egypt Limited ("Centamin" or "the Company")

(LSE:CEY, TSX:CEE)

SUKARI GOLD EXPORTS

Centamin Egypt Limited, the gold mining group in Egypt, has noted media reports regarding the possible restriction of gold exports from Egypt:

-- The Company has received no formal or informal notice from the Ministry of Petroleum and Mineral Resources or any other official or unofficial agency within Egypt to curtail, restrict or prohibit any regular gold shipments from the company's operation;

-- The Company's Sukari Gold Mine continues to produce and export gold dore for refining with a recognised international refiner and receives the international spot price for such deliveries when they occur;

-- The above activities are explicitly enshrined in the Company's Concession Agreement (Law 222 of 1994) with the Egyptian Mineral Resource Authority and the Arab Republic of Egypt, and the company has confirmed again today with the Ministry of Petroleum and Mineral Resources that any such restrictions on the export of gold will not be applicable to the Company's activities.

For Centamin Egypt Limited

Josef El-Raghy

Chairman

28 February 2011

Judging from the look of the chart only, I wouldn't be surprised to see the price hit 110, before seeing a bounce back.

Tricky to pick a good chart support level, imo. I agree, maybe 110p ish?

Cairo stock Market opens tomorrow. If there is a run on stocks then the authorities have said they will close it again until stability can be assured.

CAIRO (AP) Airport officials said authorities prevented the wife and son of ousted Egyptian president Hosni Mubarak from flying out of the Red Sea resort of Sharm el-Sheikh hours before authorities banned the Mubarak family from traveling abroad.

The officials said Monday that Mubarak's wife, Suzanne, and son Gamal tried to board a private jet Sunday at the airport in Sharm el-Sheikh, where they have been staying since Mubarak stepped down on Feb. 11.

Authorities told them they cannot leave without special permission.

The officials spoke on condition of anonymity in line with regulations.

On Monday, Egypt's top prosecutor seized all the funds of Mubarak and his family and banned them from traveling abroad.

It was not clear whether the ban was issued because they tried to leave.

Egypt delays expected reopening of stock market

(AP) 1 hour ago

CAIRO (AP) Egyptian officials have again delayed the restart of the country's stock exchange, a move that brokers said Tuesday would likely only undercut investor confidence in a market many expect to take a hammering as the country struggles to regain footing after massive protests that ousted its longtime president.

The Egyptian Exchange, shuttered for over a month, was to resume trading on Tuesday. But in an overnight statement, exchange officials said the market would reopen instead on March 6 to "allow investors to profit from the government's support to guarantee stability in the bourse."

Sp up nicely today....hope it lasts....way undervalued now....

Interesting reply to a letter sent to Shares Mag by one of it's readers:
Dan Coatsworth of Shares Mag replies: Geopolitical risk comes with the territory in mining. There are far more riskier places than Egypt which have attracted takeover interest, such as the Democratic Republic of Congo. Put simply, if the assets are of sufficient size such as Centamins Sukari gold deposit their owner is going to be a takeover target for one of the major resource groups, no matter what the location.With regards to the Concession Agreement between Egypt and Centamin, we have analysed the companys documents and spoken with its advisers to give the following summary of the arrangement.
Centamin owns half of the operating company, the rest is owned by the government therefore they share equally the net profits from the mine.The government has the right to take back the project in the event of national emergency, due to war or imminent expectation of war or internal causes. Centamin says it does not foresee this happening and that it has not seen to date any material adverse effect to the Sukari operation arising from current events in Egypt. Centamin has to pay 3% royalty on sales revenue but pays no other tax. Goldman Sachs reckons the result of the profit sharing and royalty means that Centamin effectively pays 38% corporate tax rate. From 2014 this will be around 48% of net cashflow. Payments to the government start after full capital expenditure recovery. Analysts reckon this will start in 2014. The concession agreement will be renegotiated in 2025."

So in a nut shell ?

Imo, CEY isn't as independent as one originally thought. If the government wanted to take complete control, they would have little problem, which puts a bit of a damper on the growth potential. Coupled with the imminent 48% tax to be levied on net cashflow, the reward v the risk seems less appealing to me.

..and maybe Tanker had a point a couple of weeks back re. takeover by a new regime. Bless.
However as long as gold rides high I'm still in.

CEY Director BUY..............http://moneyam.uk-wire.com/cgi-bin/articles/201103160722200355D.html