Centamin beats 2017 production forecast and expects more in 2018

Centamin unearthed more gold from its Egyptian mine than expected last year and expects to increase production by another 6% in 2018.

For the whole of 2017, the FTSE 250 group reported production of 544.7k oz, very slightly ahead of guidance of 540k oz after production in the fourth quarter of 154.3k oz, down slightly on the record third quarter but up 13% on the previous year.

There was no confirmation of costs during the year, with management having previously guided to operating cash cost $580 per oz and all-in-sustaining costs of $790 per oz.

For 2018, Centamin was guiding to production from the Sukari mine of 580,000 ounces, a 6% increase from 2017 that is expected to relatively balanced across each quarter. The forecast is for cash cost of production of $555 per oz and AISC of US$770 per oz.

Full-year results are due out on 31 January.

Analyst Yuen Low at Shore Capital said he expects the full-year financials to be strong in terms of profitability and cash generation. He added that he saw production guidance for 2018 "being a return to the company’s previous custom of low-ball targets to avoid disappointing".