Centamin sees FY production at upper end of guidance

31st Oct 2016 07:33

(ShareCast News) - Centamin said it expects 2016 gold production to be towards the upper end of its guidance of between 520,000 and 540,000 ounces as it reported a 41% increase in third quarter output.The group said gold production in the third quarter was 148,674 ounces, up 41% on the same period a year ago and up 6% on the previous quarter.Production was driven by a strong performance at the Sukari gold mine which delivered 255,000 tonnes of ore at a grade of 8.97 grams per tonne. As a result of significant cash generation from Sukari, profit sharing started during the quarter. The company has recovered total advance payments of $28.75m against future profit sharing made since 2013.Total gold sales came to 150,201 ounces in the third quarter, compared to 141,802 ounces in the second quarter and 104,803 ounces in the corresponding period a year ago.The miner reported earnings before interest, tax, depreciation and amortisation of $122m compared to $31m a year ago.Centamin added that is sees full year 2016 costs coming in at the lower end of guidance of between $530 and $550 per ounce cash cost of production and between $720 to $750 per ounce AISC.