Centamin anticipates strong second half as production remains on course

Centamin maintained annual gold production guidelines of 490,000 - 520,000 ounces after second quarter production accelerated ahead of what the company expects will be a stronger second half of the year.

Total first half gold production was 234,096 ounces, 8% higher than the same period last year, as year-on-year production growth accelerated from 7% in the first quarter to 27% in the second.

Centamin reported that it remains on course for a stronger second half as it expects to see higher grade material coming from the Hapi zone once stage four mining commences at the Sukari mine in Egypt.

However, first half sales were down 2% at 224,129 ounces, despite 16% growth in the second quarter - although the FTSE 250-listed miner said this was due to timing of the closing weekly gold shipment.

The business incurred costs of between $675 and $725 per ounce produced, and an all-in sustain cost of $890 to $950 per ounce sold, with costs expected to trend downwards in line with the scheduled increased production profile in the remainder of the year.

Andrew Pardey, chief executive of Centamin, said: "With continued improvement in the business, the company is growing its core technical competencies, through recruitment and ongoing development of its people.

"We have a portfolio of attractive organic opportunities within Sukari and continue to deliver successful results from our Cote d'Ivoire exploration programmes.

"Our balance sheet is strong with no debt, no hedging and cash and liquid assets of $327m. We are confident in our plans to maximise shareholder value and returns."

Centamin's shares were down 0.08% to 114.51p at 0822 BST.