Centamin reiterates full-year guidance despite production dip

Gold miner Centamin left its full-year guidance unchanged on Wednesday, despite a dip in first quarter production.

The listed miner said revenues in the three months to 31 March were $174.6m, down 8% year-on-year, following gold sales of 92,559 oz at an average realised gold price of $1,883 per ounce sold. In the first quarter of 2021, it sold 106,573 oz at an average realised gold price of $1,778 per ounce sold.

Production was 93,109 oz in the three months to 31 March, 11% down year-on-year.

However, the miner said the decline was expected, as production had been disrupted during the quarter while it took over the running of all underground operations at its flagship Sukari mine in Egypt, and it remained on track to meet its full-year targets.

Gold production is expected to be between 430,000 oz and 460,000 oz in 2022, with cash costs of $900-$1,000 per ounce produced.

Martin Horgan, chief executive, said: "As planned, first-quarter production reflected the successful transition to owner mining in the underground, which is now complete, enabling us to unlock the full potential of the underground operations.

"Our exploration team made good progress with initial drill results with surface exploration within the Sukari concession indicating the potential to define satellite resources, with several follow-up targets already identified."

Sukari is Egypt’s largest gold mine and has produced around 5m ounces of gold since production started in 2009.

As at 0900 BST, shares in Centamin - which also owns exploration assets in West Africa, including the Doropo project in Cote d’Ivoire - were down 7% at 90.59p.