Centamin delivers record operating profits despite falling gold price

24th Mar 2014 07:39

- EBITDA rises to record high- Falling gold prices offset by increased production- Construction Stage 4 expansion under commissioningEgypt-focused gold miner Centamin delivered record operating profits in 2013 as an increase in production and falling costs managed to offset a steep drop in commodity prices.Full-year output totalled 356,943 ounces last year, up 36% on 2012 and well ahead of the guidance of 320,000 ounces. Meanwhile, revenues rose 19% to $503.8m as the company sold 363,576 ounces of gold during the year, up 43% year-on-year.However, the average realised sales price of gold dropped to $1,384 per ounce, down from $1,667 the year before.Nevertheless, earnings before interest, tax, depreciation and amortisation (EBITDA) managed to rise 1% to an all-time high of $234.2m. Basic earnings per share, however, fell 8% to 16.87 cents. The consensus estimate was for earnings per share of 17 cents.The bottom line was helped by production cash costs which fell to $663 per ounce from $669 in 2012.Centamin's flagship Sukari mine performed well across all areas in 2013, the company said, with the processing plant operating consistently at 15% above nameplate capacity and the output from underground mining increasing progressively each quarter."The completion of construction of the Stage 4 plant expansion, which is currently under commissioning, sets the stage for the next step-up in production towards Sukari's long-term target of 450-500,000 ounces per annum from 2015 onwards," the group said.BC