Centamin’s Q2 profit falls 48% y/y

3rd August 2017 By: Creamer Media Reporter

JOHANNESBURG (miningweekly.com) – LSE- and TSX-listed Centamin’s pretax profit fell by 48% year-on-year to $37.82-million in the second quarter of the year, as a result of lower gold production.

Output at the company’s Sukari mine, in Egypt, fell by 11% year-on-year to 124 641 oz in the second quarter.

As a result of the lower output and a 12% increase in mine production costs, earnings a share before profit share with Centamin’s partner EMRA decreased to $0.03 in the quarter under review, compared with $0.06 in the second quarter of 2016.

Earnings before interest, taxes, depreciation and amortisation decreased to $65.96-million, compared with $101.61-million.

“While the first half of 2017 was focussed largely on the cut back of the east wall in the openpit, with correspondingly low ore grades, it has been very pleasing to see the business generate over $135-million in cash flow from operations over the period.

“After capital and exploration expenditure of approximately $44.6-million and profit share payments to our partner, EMRA, of $41.2-million, we are delighted to be able to increase the interim dividend payment by 25% to $0.025, comfortably exceeding the minimum target set out in our dividend policy,” commented Centamin CEO Andrew Pardey.