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Capital Metals surges following Sri Lankan minister's expulsion

10th Oct 2023 10:47

(Alliance News) - Capital Metals PLC shares climbed on Tuesday, as shareholders celebrated the expulsion of Naseer Ahamad from his party and as Sri Lanka's Minister of Environment.

Capital Metals shares surged 71% to 2.56 pence each in London on Tuesday morning. Over the last 12 months the stock is down 47%.

The Sri Lanka-focused mineral sands company said that the Supreme Court in Sri Lanka has decided that the decision by the Sri Lanka Muslim Congress to expel Naseer Ahamad from its party is legally valid.

Consequently, Ahamad has lost his parliamentary seat and his position as Minister of Environment.

Chair Greg Martyr said this is a "positive development" as the company believes the minister to be "primarily responsible for the illegal interference" with its licences. The company's licences in Sri Lanka have been suspended since December 2022.

"This, together with the recently approved change in mineral licensing procedures, which transfers certain responsibilities to the board of investment, should bode well for our situation but also more generally for the country as it takes steps to improve governance," the chair continued.

"We continue to await the outcome of our statutory appeal against the attempted cancellation of our licences which was heard by the secretary of the Ministry of Environment two weeks ago and are confident of a positive outcome."

By Sophie Rose, Alliance News reporter

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