Centamin profits soar on higher gold price

CENTAMIN Egypt yesterday posted quarterly net profits almost three times the year-ago level, boosted by higher gold prices, and said it was on track to hit its revised 2011 gold production target.

The miner said third-quarter profits came in at $43.4m (£27m) compared with $14.7m a year ago, as revenue more than doubled thanks to higher prices, offsetting increased production costs and unfavourable foreign exchange shifts.

Cash operating costs came in at $365 per ounce, $3 an ounce lower than a year ago and five per cent above the previous quarter.

The company said the average gold sales price received was $1,721 per ounce in the quarter to end-September, up 39 per cent on last year.

“The Sukari Gold Project has performed in line with management expectations in August and September, generating strong earnings once again and underpinning gold production, which will deliver on the production guidance given for 2011,” chairman Josef El-Raghy said.

Centamin previously said its 2011 production target is 200,000-210,000 ounces.