Centamin’s Egyptian mine is on course to beat output forecasts

Marion Dakers
EGYPTIAN gold producer Centamin said yesterday that production dipped in the third quarter of the year, but it expects to beat its full-year output forecasts.

The firm produced more than 84,700 ounces of gold at its Sukari mine in the three months to the end of September, down from 93,600 in the previous quarter but a 39 per cent improvement on the same period a year ago.

“The third quarter saw another strong performance on several fronts most notably a further increase in both tonnes mined from underground and total process plant throughput,” said chief executive Josef El-Raghy in a statement.

“Whilst we expect some impact in Q4 on plant throughput from the commencement of Stage 4 commissioning activities, we are now well placed to exceed our initial full year 2013 guidance of 320,000 ounces, provided on 14 March 2013.”

Analysts at Canaccord Genuity, which has a ‘hold’ rating on the stock, said Centamin had delivered “another solid quarter”, but added: “The key risk remains political instability in Egypt and potential associated unsettling events such as strikes and/or supply chain interruptions.”

Shares in the FTSE 250-listed company closed up 1.24 per cent.