Centamin advances on positive Q1 gold production results

Shares in Egypt-focussed gold mining company Centamin rose on Tuesday morning after the FTSE 250-listed company unveiled its first quarter preliminary production results revealing record gold production levels at its Sukari mine.

Shares in Egypt-focussed gold mining company Centamin rose on Tuesday morning after the FTSE 250-listed company unveiled its first quarter preliminary production results revealing record gold production levels at its Sukari mine.

Total gold production for the quarter ended March 31st was 87,016 ounces, representing a 77% increase on the corresponding quarter in 2012 and a 2.0% increase on the fourth quarter in fiscal year 2012.

The company said that formal guidance for the current year was 320,000 ounces of gold at a cash operating cost of $700 per ounce.

Open pit total material movement of 10,550 kilotonnes (kt) increased 56% and ore production of 2,133kt was up 11% on the fourth quarter of 2012.

The underground mine delivered 119kt, up 6.0% on the fourth quarter 2012. The run of mine ore stockpile balance increased by 38kt to 759kt at the end of the period.

Centamin said that the performance was driven by continued high levels of productivity coupled with a reduced impact from stoppages compared with the previous quarter.

Josef El-Raghy, Chairman of Centamin, said: "This marks a solid start to the year and output remains on target to achieve the 2013 guidance of 320,000 ounces."

"With the plant running at consistently high levels of productivity, the processing function is well placed to deliver the next step change in throughput from the stage four expansion, which remains on course to complete commissioning by the end of the year," he added.

Centamin's share price was up 2.86% to 47.11p at 09:08 on Tuesday.

MF

Recommended

Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022
Invest in VCTs: tax-free investments set to break records
Investment strategy

Invest in VCTs: tax-free investments set to break records

Generous tax breaks make VCTs – venture capital funds – an attractive supplement to pensions.
21 Jan 2022
HubSpot: a tech stock set to tumble
Trading

HubSpot: a tech stock set to tumble

US tech stocks have had a fantastic couple of years. But this year is unlikely to be so bullish for high-fliers that can’t turn big profits.
18 Jan 2022

Most Popular

Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022
US inflation is at its highest since 1982. Why aren’t markets panicking?
Inflation

US inflation is at its highest since 1982. Why aren’t markets panicking?

US inflation is at 7% – the last time it was this high interest rates were at 14%. But instead of panicking, markets just shrugged. John Stepek explai…
13 Jan 2022