Centamin maintains 2012 target despite Q3 drop

Reuters, Tuesday 9 Oct 2012

The gold miner says it will meet its 2012 production target

 

Egypt focused-goldminer Centamin said it was on course to meet its full-year output guidance for 2012, shrugging off a 10 per cent drop in production in the third quarter compared to the previous period.

Centamin, whose Sukari operation in Egypt is the first modern gold mine in the country, on Tuesday posted total production of 60,922 ounces in the three months to 30 September, falling compared to its second quarter performance after scheduled maintenance and an illegal strike.

Output from the open pit rose 6 per cent, in line with a planned ramp up of that part of the mine, while the underground operations produced 19 per cent less gold as they were affected by the strike and a temporary shortage of equipment.

"Although weak quarterly production was expected, the pressure remains high on the fourth quarter," Canaccord analyst Dmitry Kalachev said.

Shares in Centamin, due to post its third quarter financial results on Nov. 14 which will likely be boosted by a rising gold price which hit an 11-month high earlier in October, traded down 1 per cent to 96.75 per cent at 0741 GMT.

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