Centamin Q1 production falls as expected, but guidance unchanged

8th Apr 2015 07:50

Egyptian gold miner Centamin said it remains on track to hit its annual production targets despite an anticipated slip in output in the first quarter.Total production from its flagship Sukari project in the three months ended 31 March was 108,233 ounces (oz), up 46% on the same time last year but 16% lower than the preceding quarter.Quarterly throughput at the process plants fell 5% quarter-on-quarter to 2.48m tonnes as the new SAG mill reline was brought forward and fitted with improved design lifters and grates.Chief executive Andrew Pardey said a drop in production "was expected during the first half of 2015 as mining progresses through the upper portions of the next stage of open pit development".He said Centamin remains on track to hit its full-year target of 420,000oz, with output forecast to exceed annualised rates exceeding 450,000oz in the second half.However, analyst Yuen Low from Shore Capital said: "We continue to believe that this guidance could well prove to be another low-ball to cater for potential underperformance."Centamin produced 377,261oz of gold in 2014.The stock was more or less flat at 60.45p by 08:34 on Wednesday.