Centamin Reports Dip In Earnings, Production In 1Q
Centamin Plc (LSE: CEY, TSX: CEE) reports a decline in production during the first quarter, with earnings also lower than the prior quarter. The company lists basic earnings per share (after profit share) of 1.16 cents, down 63% on the fourth quarter. Earnings per share (before profit share) of 2.557 cents were down 50% from the fourth quarter. Gold production of 109,187 ounces was a 20% decrease from the fourth quarter and 13% lower than the first quarter of 2016, although in line with the company’s forecast. Centamin lists all-in sustaining costs of $887 per ounce. “As forecast, production rates decreased in the first quarter, mainly driven by a planned reduction in average grade from the open pit,” says Andrew Pardey, chief executive officer. “Despite lower production rates, Sukari generated $58 million of cash from operations during the quarter. During the second quarter, we expect to see open-pit ore grades increase towards the reserve average as the cutback in the east wall of the pit is further progressed. With the processing and underground mining operations also continuing to deliver strong levels of productivity, we remain on course to meet our full year 2017 production guidance of 540,000 ounces at a cash operating cost of $580 per ounce and all-in-sustaining cost of $790 per ounce.” Centamin says it remains debt-free and unhedged with cash, bullion on hand, gold sales receivable and available-for-sale financial assets of $290.9 million as of March 31.