GOLD mining firm Centamin said yesterday that falling gold prices and a drop in sales had hit earnings during the second quarter to 30 June.
However, shares in the company jumped by 11.16 per cent, after the group reported an increase in production in the three months, and said it was gathering “encouraging results” from exploration programmes in Ethiopia, Burkina Faso and Ivory Coast.
Gold output rose by 33 per cent on the second quarter of last year, up to 107,781oz. Total production guidance for 2015 is between 430,000oz and 440,000oz.
However, earnings before income tax, depreciation and amortisation of $37.3m (£23.9m), was down 30 per cent on the first quarter, which the firm blamed on a fall in gold prices and a reduction in gold sales volumes. The interim dividend was increased to 0.97 cent per share, from 0.87 cent per share last year.
Centamin boss Andrew Pardey said: “Centamin is pleased to have generated strong cash flows, allowing both increased dividend payments to shareholders and continued investment in exploration, despite the continued pressure on the gold price.”