25th May 2018 10:12
LONDON (Alliance News) - Centamin PLC shares took a plunge Friday morning after the gold miner cut its full-year production guidance for its Egyptian gold mine.
Shares in Centamin were down 17% to 132.20 pence each Friday morning.
The FTSE 250-listed gold miner said the grades at the Sukari gold mine open pit "continued to be below budget". The oxide material has now been moved to a new dump leach pad and will be irrigated late in the second quarter.
The total underground production is 10% below forecast. Production equipment availability issues have resulted in lower production ore tonnage mined. Development tonnage mined has increased but at a lower grade.
The gold mining company is revising its 2018 guidance to between 505,000 and 515,000 ounces at a cash cost of production of USD625 to USD640 per ounce produced and an all-in sustaining cost of USD875 to USD890 per ounce sold.
Centamin had maintained its full-year production guidance of 580,000 ounces at a cash cost of USD555 per ounce and all-in-sustaining cost of USD770 per ounce when posting its first quarter results at the beginning of May.
Centamin is forecasting a "weak" second quarter but "strong" production in the third and fourth quarter. The grades from the open pit are expected to increase in the third quarter.
Related Shares:
Centamin PLC