---ADDS SHARE PRICE (DOWN 15%) AND RFC AMBRIAN COMMENT---
Gold miner Centamin (LON:CEY) admitted today recommendations by the Egyptian State Commissioner’s Office to the country’s Supreme Administrative Court regarding the company’s Sukari mine “are not positive”.
However it added: “The company does not believe that they address the substantive merits of Centamin's appeal and as such the company's grounds of appeal remain unchanged upon the initial review of the State Commissioners report.”
The group is appealing the decision to revoke Centamin’s exploitation lease for Sukari, with the hearing set for June 19.
Beforehand the State Commissioner's Office was asked to produce a report and a number of non-binding recommendations for the Supreme Administrative Court. Centamin does not actually reveal what the recommendations are.
However it does point to the Supreme Administrative Court’s March 20 order suspending an earlier ruling by the Administrative Court.
It the SAC said: “On the basis of the copy of the exploitation lease executed by the Minister of Petroleum presented to SAC, the annulment of such lease by the Administrative Court was likely to be cancelled upon the issuance of a judgment on the merits of the case."
The shares lost 15% today to trade at 38.7 pence each and have tumbled around 40% in the last year.
City broker RFC Ambrian said: “While unclear, we understand that if the appeal is not ruled in Centamin’s favour in Egypt, it may seek an international ruling.
“You have to wonder — will Centamin use high-grade ore to maximise cash this quarter?
“Also, will it continue to invest cashflow into its expansion (US$100m was remaining for 2013)?”