Centamin's share price slides after reporting pre-tax profit more than halving as it deals with the falling price of gold

 
James Nickerson
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Johannesburg City Of Gold
Centamin has had to deal with the falling price of gold (Source: Getty)

Centamin's share price is one of the biggest losers on the FTSE 250 index today after posting poor results.

The mining company's share price was down 5.26 per cent, at 59.33p per share. in late morning trading.

The company, which operates in Africa, said pre-tax profit in the third quarter mover than halved to $6.3m, from $18.8m in the second quarter and $15.8m in the same period a year ago.

Read more: Commodities plunge to 13 year-low dragged down by mining shares

Earnings before interest, tax, depreciation and amortisation in the third quarter fell 16 per cent to $31.3m from $37.8 in the same period a year ago. Meanwhile, gold sold increased to 104,803 ounces from 91,575 ounces a year ago.

The company has had to deal with falling gold prices over the last year, which have fallen six per cent over the last 12 months. However, it said that its costs for the full year should be lower than expected as production significantly ramps-up in the fourth quarter.

Read more: Gold’s plunge hasn’t taken it off the table for traders

Andrew Pardey, CEO of Centamin, commented: " Full year guidance is between 430,000 and 440,000 ounces at a cash cost of production of below $700 per ounce and below the previously guided AISC of US$950 per ounce."

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