Gold output is hit at Centamin

SHARES in gold producer Centamin Egypt dropped 20.5 per cent to 109.6p yesterday after the company cut its output forecast for 2011.

Centamin Egypt announced lower than expected production in the second quarter due to local restrictions on blasting. The company said it is confident that the blast issues will be resolved in the third quarter.

As well as cutting its production forecast, it raised its average cash cost forecast to $550 an ounce from $450.