Centamin Q3 profits slip on weaker gold price

1st Nov 2018 08:21

(Sharecast News) - Centamin said third quarter pre-tax profits slipped 1% to $21.8m on the back of a weaker gold price. Year on year the the pre-tax profit fall was 69%. Underlying earnings were up 6% to $48.7m as revenue rose 1% to $125m.Production at its Egyptian Sukari gold mine increased 27% against the preceding quarter to 117,720 ounces resulting from month on month operational improvements in the open pit and underground. Gold sales were up 9% quarter-on-quarter to 106,798 ounces at an average realised gold price of $1,206 per ounce, a fall of 7%.To date, in the fourth quarter, operational sections were performing in line with the plan and the company remained on track to produce 145,000 ounces, Centamin said.All-in-sustained-cost per ounce sold would be at the top end of the guidance range of $875 to $890 per ounce sold. Full-year capital expenditure is expected to fall to $125m, it added.The company earlier this month cut gold production forecasts for the second time this year due to operational issues.Centamin said it expected to produce 480,000 ounces in 2018, down from a range of 505,000 - 515,000 ounces previously forecast.