Centamin Maintains 2012 Target Despite Q3 Drop

Egypt focused-goldminer Centamin said it was on course to meet its full-year output guidance for 2012, shrugging off a 10 percent drop in production in the third quarter compared to the previous period.

Centamin, whose Sukari operation in Egypt is the first modern gold mine in the country, on Tuesday posted total production of 60,922 ounces in the three months to Sept. 30, falling compared to its second quarter performance after scheduled maintenance and an illegal strike.

Output from the open pit rose 6 percent, in line with a planned ramp up of that part of the mine, while the underground operations produced 19 percent less gold as they were affected by the strike and a temporary shortage of equipment.

“Although weak quarterly production was expected, the pressure remains high on the fourth quarter,” Canaccord analyst Dmitry Kalachev said.

Shares in Centamin, due to post its third quarter financial results on Nov. 14 which will likely be boosted by a rising gold price which hit an 11-month high earlier in October, traded down 1 percent to 96.75 percent at 0741 GMT.

Reuters