1st Nov 2018 09:15
LONDON (Alliance News) - Centamin PLC on Thursday reported an increase in gold production in the third quarter on the second quarter, but a drop on a year-on-year basis, leading to a decrease in its annual production guidance.
For the quarter to the end of September, the FTSE 250-listed miner of Egyptian gold reported a pretax profit of USD21.8 million, a 69% drop from USD70.0 million the year before, on revenue that declined by 35% to USD125.1 million, from USD193.1 million.
Centamin produced 117,720 ounces of gold in the quarter from its Sukari gold mine in Egypt at a cash cost of production of USD619 per ounce and all-in sustaining costs of USD889 per ounce sold.
This was a 27% increase from 92,803 ounces in the second quarter, but a 25% drop from 156,533 ounces for the third quarter the prior year.
As a result, Centamin has reduced its production guidance for 2018 to 480,000 ounces, from the range of 505,000 to 515,000 ounces last stated in its interim results.
Cash cost for 2018 is expected in the range of USD625 to USD460 per ounce, and all-in sustaining cost per ounce at USD875 to USD890.
"These results demonstrate a material operational improvement on Q2. We are extremely pleased with the operational performance from the open pit and were pleased to see the underground returning towards expected production levels. The open pit, following another record quarter for material moved, is now through the transitional ore, grades are improving and are expected to continue to improve throughout Q4," said Chief Executive Officer Andrew Pardey.
Shares in Centamin were down 2.4% at 97.15 pence on Thursday.
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