Shares in Centamin (LSE: CEY) fell by more than 3.5% in early trade, following the release of its results for the quarter ended 30 September 2013.
Despite gold production in Q3 increasing 39% on the comparative period in 2012, at 84,757 ounces it is 9% down against Q2 2013.
Due to the price of gold bullion dropping, earnings per share fell markedly as well (to 2.72 cents), down 51% on Q3 2012 (5.53 cents) and 43% on the previous quarter this year (4.75 cents).
Management confirmed that the cost of production remains in line with the full-year guidance of S$700 per ounce, currently converting at $693 per ounce, though operations are “well placed to exceed full year 2013 guidance… of 320,000 ounces”.
Centamin also revealed $11.9 million write down in relation to the investment in Nyota Minerals, further trimming its stake to 14.4% in the Ethiopia-focused gold mine developer. However, today’s statement went on to say: “Exploration results at [Centamin’s Egyptian gold mine] Sukari and in Ethiopia continue to justify further drilling”.
Chairman Josef El-Raghy commented:
“The third quarter saw another strong performance on several fronts, most notably a further increase in both tonnes mined from underground and total process plant throughput. Whilst we expect some impact in Q4 on plant throughput from the commencement of Stage 4 commissioning activities, we are now well placed to exceed our initial full year 2013 guidance of 320,000 ounces, provided on 14 March 2013.”
