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.

.

HC, with that scenario in mind, just imagine, they
would pocket a packet if they bought low today,
if they know what is afoot behind the scenes.

Market update
Centamin notes media reports this morning that its Concession Agreement to extract gold from the Sukari mine has been annulled.

Comments reportedly made by an Egyptian administrative court this morning have given rise to speculation that parts of the Concession Agreement may have, in fact, been suspended. However at this time, no details of a final decision are available and no written judgement has been given.

Centamin confirms that it is not a party to this case, repeats its view that the concession as law 222 of 1994 remains valid and that the court does not have jurisdiction to cancel it.

The Company will inform the market further as soon as more information is available. In the meantime normal mining operations continue.

Not sure how to take this as cey has consistently adopted an ostrich pose on the whole matter. The court proceedings are certainly relevant and price sensitive but cey has always ignored it until compelling media/market events force a response. IMHO any reputable organisation would at least update the market to some degree before the event especially as here cey believes the proceedings are irrelevant. Getting your point of view in first is always better than the now defensive posture.

Centamin will clearly challenge the ruling. It may win. But can you ever view this stock in the same light again? It will now, for years, trade at a huge discount to fair value since investors will (correctly reason) that at any time there might be another legal or political threat to ownership. In a worst case scenario Centamin will lose this asset.

I warned you that this would happen. If the shares are unsuspended I would – whatever the company says – sell and switch to a safer gold play.

get your money back buy PGD they are cheap and will be bought out in 12 months
22p

I see you are upsetting a few over the road tanker!

Trading due to resume in Toronto @15:15 GMT.

there is a correction posted still halted.

Yes - I've just seen it - what a farce!

tanks - whose inside leg measurement do you have that gives you this cast-iron info about pgd?

Over the road he thinks he can "email the brotherhood leader and get him to alter the ruling" :-)

Avoid this with a bargepole as it operates in Egypt.

Centamin ordered to stop Egypt gold-mining operations


Gold producer Centamin has been ordered to halt local operations after an Egyptian court ruled its right to operate the Sukari mine, its main asset, was invalid.

Cairo's Administrative Court on Tuesday said it was cancelling the contract between the government and the gold-mining firm, citing irregularities in the way Centamin had renewed its contract to exploit the country's largest gold mine.

The firm was granted a 30-year renewal of its mining contract without it passing through Egypt's lower house of Parliament as is customary, the Council said.

The 2004 contract gave Centamin Egypt the right to exploit around 160 square kilometres in Sukari, a gold mine in the Egypt's southeastern desert. Under the deal, net revenues from the gold mine were split 50-50 between Centamin and the government.

Contacted by Ahram Online, the lawyer who prosecuted the case against Centium said the court's decision was binding.

Hamdi El-Fakharany, who also served in Egypt's dissolved parliament, said that the exploitation contract was granted to Centamin Egypt in 2005 by the head of the Egyptian Mineral Resources Authority, a man not qualified to issue such decisions,

"It's parliament's role [to do so]," he said.

El-Fakharany complained that since Sukari mine produced its first ounce of gold in 2009, the government had seen just $19 million of a total of $875 million in revenues.

"This is not fair. The government has pumped about 200,000 litres of diesel each day to help the company's operations over the last 10 years, that alone is worth $800 million," he said.

Centamin, for its part, said its contract to mine gold at Sukari remained valid, dismissing news emerging from an administrative court as "comments."

Centamin Egypt’s head of exploration, Ismail Abdel Khaleq, told Ahram Online that the court had made "a huge mistake," and that the cancelled contract was not for exploration.

Abdel Khaleq added at the exploitation agreement was signed in 1995 and had been passed through the parliament.

"The contract signed in 2004 involved an additional 160 square kilometre offered by the government to the company to explore," he said.

Centamin and its Egyptian branch have been exploring for gold in Egypt since 1995.
Construction of the Sukari Gold Project began in 2007, with the first gold being produced in mid-2009.

In 2011, gold production at the mine stood at 202,698 ounces, worth $556 per ounce, representing a 35 per cent increase on 2010 production.

El-Fakharany complained that since Sukari mine produced its first ounce of gold in 2009, the government had seen just $19 million of a total of $875 million in revenues.

"This is not fair. The government has pumped about 200,000 litres of diesel each day to help the company's operations over the last 10 years, that alone is worth $800 million," he said.

so now it is established that the argument is about the government grabbing a (very much) larger slice, and the court ruling is merely a way of getting the management's minds concentrated

though egypt is probably slightly less corrupt than kenya, there is every likelihood that several people have already had their accounts well-stuffed, and now MB is in power, it wants to "redirect" that slush money - into their leaders own pockets of course!

hlyeo98- 30 Oct 2012 17:16 - 1733 of 1735

Avoid this with a bargepole as it operates in Egypt

------------------------------------------------------------

is that the most moronic comment ever posted on a financial board??

Great advice but posted at least one day late and if ever there was a prize for stating the blindingly obvious that post won by a street lol!!!

Judging by your hysteria earlier I'm guessing you've been caught a little short, which is most ironic!

Let Centamin sink to nothing

hlyeo98 - 09 Jul 2012 09:59 - 1640 of 1737

CEY is trying to deny breaches in contract.


My post is 3 months before the event of today's crash.
Note above: ptholden is obviously the blindest of all posters.

Link lifted from elsewhere :- Centamin ordered to stop Egypt gold-mining operations

This is part of the article and worth a read.

"Centamin Egypt’s head of exploration, Ismail Abdel Khaleq, told Ahram Online that the court had made "a huge mistake," and that the cancelled contract was not for exploration.

Abdel Khaleq added at the exploitation agreement was signed in 1995 and had been passed through the parliament.

"The contract signed in 2004 involved an additional 160 square kilometre offered by the government to the company to explore," he said."

I will say this I am omniscient.
the muslim brotherhood are croooks and very dishonest people
they are not fit to have any believes if hey was a god would destroy them
sodom is what they are filthy inthe name of god .