Sukari Gold Mine Rises 9%, Centamin Gold Shares Up

Egypt-focused miner Centamin Plc (CEY.L) said quarterly production at its flagship Sukari gold mine rose 9 percent, sending its shares up as much as 4.5 percent.

Production at Sukari – the first large-scale modern gold mine in Egypt – rose to 49,071 ounces for the first quarter from 45,204 ounces a year earlier.

Centamin backed its production forecast of 250,000 ounces of gold for the year – 25 percent above last year’s output. This would come at a cash cost of $550 per ounce, the company said in a statement.

“With our commitment to a continued capex and exploration programme, the periods ahead will see sustained growth on many fronts in both Egypt and Ethiopia,” said Centamin Chairman Josef El-Raghy.

The company’s pretax profit fell to $54.3 million for the quarter ended March 31 from $56.1 million a year ago, offsetting gains from higher average price, which rose nearly 21 percent to $1,694.

Centamin shares were up about 2 percent at 62.3 pence at 7.43 GMT on the London Stock Exchange. They touched a high of 63.75 pence earlier in the session.

Centamin plc is the ultimate holding company. The Company, along with its subsidiaries, is engaged in the business of exploration for precious and base metals. The Company’s principal asset is the Sukari Gold Mine (Sukari), which is located in the Eastern Desert of Egypt, approximately 700 kilometers from Cairo and 25 kilometers from the Red Sea.

The Sukari Gold Mine is a gold mine in Egypt. During 2011, the Company acquired Sheba Exploration (UK) Plc and had interests in four exploration licenses in Ethiopia, where it conducted further exploration activities. Some of its wholly owned subsidiaries are Centamin Egypt Limited, Viking Resources Limited, North African Resources NL, Pharaoh Gold Mines NL, Egyptian Pharaoh Investments, Centamin UK Limited, Sheba Exploration (UK) plc and Sheba Exploration Limited.