2nd Aug 2018 09:46
LONDON (Alliance News) - Gold mining company Centamin PLC on Thursday reported a sharp rise in first half profit due to higher gold prices.
In the six months ended June, the FTSE 250-listed miner increased pretax profit 34% to USD80.4 million from USD60.0 million year-on-year. Revenue expanded 1.5% to USD296.4 million from USD292.0 million the year before.
Centamin's average realised gold price in the half-year increased 7% to USD1,316 per ounce from USD1,235, while all-in sustaining costs per ounce rose 8.5% USD930 from USD857.
The cash cost of production decreased 13% to USD135.9 million from USD156.1 million, while all-in sustaining costs increased 3% to USD209.2 million from USD202.3 million.
The company's gold produced and sold did fall in the half. Centamin produced 217,099 ounces from its Sukari gold mine in Egypt, down 7% from last year's 233,827 ounces.
The company sold 228,672 gold ounces, down 3% from 235,964 ounces sold in the first half of 2017.
Centamin is proposing an interim dividend of USD0.25 per share, flat on the year before.
Looking ahead, the company expects "significantly" stronger production in the second half.
Centamin maintained its revised full-year guidance of 505,000 ounces to 515,000 ounces.
Unit cash cost of production is on track with the company's guidance of USD625 to USD640 per ounce produced. All-in sustaining costs per ounce sold is expected to fall back within guidance of USD875 to USD890 per ounce sold, in line with increased production in the second half.
Shares in Centamin were up 1.1% Thursday at 114.70 pence each.
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