Centamin maintains targets for 2012 despite production drop

 
City A.M. Reporter
EGYPT focused gold miner Centamin said it was on course to meet its full-year output guidance for 2012, shrugging off a 10 per cent drop in production in the third quarter compared to the previous period.

Centamin, whose Sukari operation in Egypt is the first modern gold mine in the country, yesterday posted total production of 60,922 ounces in the three months to 30 September, falling compared to its second quarter performance after scheduled maintenance and an illegal strike.

Output from the open pit rose six per cent, in line with a planned ramp up of that part of the mine, while the underground operations produced 19 per cent less gold as they were affected by the strike and a temporary shortage of equipment.

“Although weak quarterly production was expected, the pressure remains high on the fourth quarter,” Canaccord analyst Dmitry Kalachev said.

Shares in Centamin, which hit an 11-month high earlier in October, closed down 0.8 per cent at 96.85p. The firm is due to post its third quarter financial results on 14 November.