Centamin Q3 profits slip on weaker gold price

Centamin said third quarter pre-tax profits slipped 1% to $21.8m on the back of a weaker gold price.

Year on year the the pre-tax profit fall was 69%. Underlying earnings were up 6% to $48.7m as revenue rose 1% to $125m.

Production at its Egyptian Sukari gold mine increased 27% against the preceding quarter to 117,720 ounces resulting from month on month operational improvements in the open pit and underground. Gold sales were up 9% quarter-on-quarter to 106,798 ounces at an average realised gold price of $1,206 per ounce, a fall of 7%.

To date, in the fourth quarter, operational sections were performing in line with the plan and the company remained on track to produce 145,000 ounces, Centamin said.

All-in-sustained-cost per ounce sold would be at the top end of the guidance range of $875 to $890 per ounce sold. Full-year capital expenditure is expected to fall to $125m, it added.

The company earlier this month cut gold production forecasts for the second time this year due to operational issues.

Centamin said it expected to produce 480,000 ounces in 2018, down from a range of 505,000 - 515,000 ounces previously forecast.