Centamin doubles profits after record quarter

Egypt-focused gold miner Centamin achieved a record quarter of gold production in the last three months of the financial year, helped by higher output at its flagship Sukari mine and lower operating costs.

"With expanding production, increasing resources and reserves and a robust balance sheet, we are well positioned for a strong 2012," said Chairman Josef El-Raghy.

Pre-tax profits totalled $37.5m in the fourth quarter, more than double the figure the year before ($18.4m). Meanwhile, revenue jumped from $48.3m to $84.9m.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

For the full-year, pre-tax profits totalled $184.6m, up from just $49.6m in 2010, while revenue rose from $124.5m to $341.1m.

Gold production rose to 58,965 ounces in the fourth quarter (ended December 31st), 10% above the 53,189 ounces produced in the same period of 2010 and 17% higher than the 50,539 ounces produced in the third quarter of 2011. Centamin said the result was helped by the record quarterly throughput in the Sukari process plant of 1,066kt, a 38% improvement year-on-year.

The average sales price stood at $1,671 in the fourth quarter, slightly down from the $1,721 seen in the third quarter but well above the $1,369 in the fourth quarter of 2010.

Total 2011 gold production was 35% higher than the year before at 202,698 ounces. 2012 production is expected to increase further to 250,000 ounces.

Cash and liquid assets stood at $200m at the end of 2011. Centamin remains debt-free.

Shares were 2.18% higher at 98.6p in early trading on Monday.

BC