Centamin PLC (LSE:CEY) reported a decline in interim profits as lower gold sales and higher production costs outweighed stronger prices for the metal.
Underlying earnings (EBITDA) dropped 26% from the year-earlier period to US$190.4mln as revenue fell 18%.
Gold production declined 20% to 204,275 ounces as remedial work was carried out on one of the pits at its Sukari mine in Egypt following a life of asset review, while the cash cost of producing an ounce of gold jumped 26% to US$807. Gold sales slumped 25% to 203,802 ounces in the first six months.
Centamin maintained its gold production guidance of 400,000 to 430,000 ounces for the full year and its cash costs of US$800-900 an ounce.
“We remain on track to meet full year cost and production guidance and our key capital projects continue to progress on schedule,” said chief executive Martin Horgan.
“The company is financially robust with US$312mln in cash and liquid assets, providing the flexibility to invest in the long-term future of our flagship asset, Sukari, and continue to develop our active growth pipeline in Egypt and Côte d'Ivoire."
It plans to pay an interim dividend of 4.0 US cents per share on September 30.