Gold miner Centamin, which operates the Sukari mine in Egypt, has reported sharply lower third-quarter profit, as its revenue decreased by 35% year-on-year, reflecting lower gold production and sales.
The London- and Toronto-listed miner posted profit of $10.23-million, compared with $34-million in the same quarter of 2017, on revenue of $125.13-million.
Gold production fell by 25% year-on-year to 117 720 oz and sales by 29% year-on-year to 106 798 oz. However, on a quarter-on-quarter comparison, gold production increased from 92 803 oz and sales increased from 97 628 oz in the second quarter.
Cash costs increased by 10% quarter-on-quarter to $70.87-million, but it represented a 6% year-on-year decrease. The higher costs compared with the June quarter was as a result of increased volumes of material movement, the company explained.
Unit cash costs decreased by 13% quarter-on-quarter to $619/oz produced, driven by increased production. On a year-on-year basis, unit costs increased by 28%.
Cetamin has reaffirmed its lowered production guidance of 480 000 oz for the year, at an unit cost of between $625/oz to $640/oz. The company’s all-in sustaining cost is likely to be at the top end of the guidance of $875/oz to $890/oz.
Meanwhile, the company also reported that would publish a preliminary economic assessment for the Doropo project, in Côte d'Ivoire, in the first half of 2019. Geotechnical and hydrological studies have been completed and the full metallurgical studies would be wrapped up in the current quarter.
Centamin said that Doropo was shaping up to be its next development project.