Egypt-focused gold miner Centamin doubles profit in Q1

Egypt-focused gold mining company Centamin has declared it more than doubled its profit in the first quarter of 2018, helped by rising gold prices and a ramp up in production.

The company’s pre-tax profit soared to 122% to US$65.4 million compared to the same quarter in 2017, while year-on-year revenue rose 23% to $172.5 million.

Centamin’s Q1 profit margins were amongst the very best in the mining industry, and were shaped by a 14% jump in gold sales to 131,045 ounces and a 9% increase in the average realised gold price during the quarter, which stood at $1,328 per ounce.

Production at the firm’s Sukari mine – the only operating gold mine in Egypt – was up 14% from the previous year, while Centamin’s total gold production hit 124,296 ounces, up from last year’s 109,197 ounces.

The London and Toronto listed company maintained a full-year production guidance for 2018 of 580,000 ounces at a cash cost of production of $555 per ounce and all-in sustaining costs of $770 per ounce sold.

“Overall the first quarter results provide a solid foundation to build upon throughout 2018,” commented chief executive Bobby Morse.