Centamin forecasts 18% production increase from its Egypt gold mine in 2014
Ahram Online, Thursday 30 Jan 2014
Company predicts 420,000 ounces of gold this year from its mine in Marsa Alam, on Egypt's Red Sea

Egypt-based Sukari Gold Mine forecasts an 18 percent production increase in 2014, the company's owner Centamin announced on Thursday.

Centamin continues to undertake exploration projects and expects 2014 will see the production of 420,000 ounces of gold.

The Sukari project began in 2007 in the Red Sea city of Marsa Alam, and the first gold bar was poured in late June 2009.

The year 2012 saw a temporary suspension in production due to disputes with the Egyptian government over diesel fuel supplies and its gold exports. In October of that year, an Egyptian court ruled that Centamin's rights to the Sukari mine were invalid and ordered a halt in operations.

In March 2013, Egypt's Supreme Administrative Court suspended the verdict cancelling the contract between the government and Centamin. Regardless, Centamin’s profit dropped by more than a third in the third quarter of 2013 due to a sharp drop in bullion prices.

Full-year production in 2013 amounted to 356,943 ounces, a 36 percent increase on 2012 and above guidance of 320,000 ounces.

Cash production cost per ounce inched up 4.6 percent to reach $700 per ounce in 2013, compared to $669 per ounce in 2012.

Centamin had seen its profit drop by more than a third in the third quarter of 2013 due to a sharp plunge in bullion prices.

Last year's earnings before interest, tax, depreciation and amortisation (EBITDA) came in at just over $43 million through September, which was slightly lower than some analysts had expected.

Centamin is based in the UK-governed island of Jersey and listed on the London Stock Exchange.