CENTAMIN’s solid set of half-year results, in which it cut costs and boosted production, helped its shares close up 1.28 per cent to 173.80p today.
Centamin's gold production swelled 30 per cent year-on-year to 140,306 ounces in the six months to 30 June.
The gold miner's production costs per unit shrank 34.70 per cent to $461 per ounce, as its average realised gold price rose 6.73 per cent to $1,268 per ounce.
This helped its pre-tax profits jump 142 per cent to $114m, as its revenue rose from 26 per cent to $114m.
The London-listed firm hiked its annual production guidance for its Sukari mine in Egypt from 470,000 ounces to between 520,000 ounces and 470,000 ounces. This also allowed it to cut its estimate for production cost per unit.
Why it's interesting
Centamin shares jumped as much as 6.4 per cent to 182.60p at the open, taking fellow London-listed gold miner Rangold Resources with it.
Gold miners were a rare winner from the Brexit vote two months ago, as the market fallout sent the price of bullion soaring.
Gold prices have risen nearly 30 per cent this year, a marked reversal of fortunes given they fell to a six-year low in December.
What Centamin said
Andrew Pardey, chief executive of Centamin, said: "Our 2016 guidance has been updated to reflect the strong first half."
"The key focus for the operation during the coming quarters remains on realising the potential for sustained productivity and cost improvements."
What the analysts said
Investment bank Investec said in a note: "Clearly a solid with a material increase to guidance outlined against the back drop of a firming gold price."
Meanwhile, broker Canaccord Genuity said that the key stand out "was a very strong performance in cost control, with the benefit from operational cost efficiencies and lower fuel costs exceeding our forecasts."
Canaccord continued: "We had expected production and costs to beat guidance for the year, but not to the extent that the company is now guiding to. This is likely to result in positive revisions to both our forecasts and those in the market."