Centamin PLC (LON:CEY) increase quarterly gold production at its flagship Sukari gold mine in Egypt by 6.5% to 125,268 ounces during the quarter to the end of March.
The result supports Centamin’s plans to produce a total of 470,000 ounces of gold this year, and although no guidance on costs was given, the previously stated target was cash operating costs of US$680 per ounce and all-in sustaining costs of US$900 per ounce.
That would keep Sukari comfortably profitable in the current commodities environment, with gold rangebound between US$1,200 and slightly US$1,300 over recent monts.
However, the company has also implemented improvements at Sukari that may eventually feed through into improved productivity.
With that in mind, broker Shore Capital called the 470,000 ounce guidance number “the company’s habitual low-ball to cater for potential disappointments.”
The shares opened up nearly 4% at 93.8p.