The Centamin PLC (LON: CEY) share price edged 2.2% lower after releasing its operations update and earnings results for the first quarter of 2023. The gold mining company produced 105,875 ounces (oz) of gold from its Sukari mine, translating into $205 million in revenue.
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The company’s revenues represented an 18% improvement from the sales recorded in Q1 2022. However, the company sold more ounces of gold in Q1 2022, 107,661 oz, at a lower average price of $1,902/oz.
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Centamin also revealed that it spent $54 million on capital expenditures during Q1, including costs associated with the final stages of the underground paste-fill plant construction ahead of its scheduled commissioning in Q2.
The gold mining company with operations in Egypt ended the quarter with a solid balance sheet and had $155 million in cash and equivalents as of 31 March 2023. The company confirmed its outlook for the year, where it expects to produce 450,000 to 480,000 oz of gold at an adjusted all-in sustaining cost of US$1,250-1,400/oz sold.
Martin Horgan, Centamin’s CEO, commented: “These results reflect a good start to the year, with the Sukari team delivering another consistent performance in line with our operational plan, as well as making great progress on our key capital projects. Our mining operations continue to benefit from increased flexibility in the open pit due to the accelerated waste-mining strategy and operational productivity gains, as well as improved productivity and performance from the underground mine, following the transition to owner mining in 2022.”
Adding:
“We reiterate our 2023 guidance and look forward to reporting later in the year on several additional projects which will deliver growth and underpin returns. These include connecting Sukari to the grid, which will reduce carbon emissions and save costs, publishing an optimised Sukari life of mine plan, commencing drill testing on our Egyptian Eastern Desert blocks and completing the PFS at our advanced Doropo Project in Côte d'Ivoire.”
Centamin shares fell slightly on today’s announcement, but the company’s long-term prospects remain promising.
*This is not investment advice.
Centamin share price.
The Centamin share price fell 2.18% to trade at 104.225p, from Thursday’s closing price of 106.55p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.