Centamin Q1 profits shine on higher production, lower cash costs

Egypt-based gold miner Centamin said first quarter earnings before interest, tax, depreciation and amortisation rose to $67.4m from $53m a year earlier.

Net profit was up to $40.85m from last year's $28.57m. Earnings per share were 3.56 cents from 2.50 cents while revenues rose to $148.1m from $135.5m in 2015.

Gold production of increased 16% year-on-year to125,268. Against the fourth quarter it was up 6%. The average realised gold price fell to $1,196 per ounce from $1,216.

Centamin company confirmed 2016 annual guidance of 470,000 ounces at $680 per ounce cash cost of production and $900 per ounce all-in-sustaining costs.

The company added that its two legal battles in Egypt were still ongoing. It is currently appealing against the Supreme Administrative Court over the validity of its concession on its flagship Sukari mine and a long-running dispute with its diesel supplier about fuel charges.

“With the potential for the legal process in Egypt to be lengthy, Centamin anticipates a number of hearings and adjournments before decisions are reached. Any enforcement of the Administrative Court decision has been suspended pending the appeal ruling,” Centamin said.