Last checked at (Sharecast News) - Analysts at Berenberg upgraded mining firm Centamin to 'buy' from 'hold' on Friday, stating the group's new mine had rebased their expectations.
With Centamin releasing a new mine plan for its Sukari mine in Egypt, Berenberg now expects production of 452,000 ounces for 2020 versus guidance of 445,000-455,000 ounces.
Berenberg noted that capex was "materially above" its previous expectations of $225.0m in 2021, $195.0m in 2022 and $175.0m in 2023, due to higher than forecast expenditure on waste stripping after a prolonged period of understripping.
"We have updated our estimates for revised guidance and believe that this should draw a line under a difficult period for the company," said Berenberg.
"We believe the shares will be driven by results and executing to plan, and we move to a price target of 146.0p based on an unchanged blend of 1.2x NAV and 6x EV/EBITDA."
The German bank also highlighted that Centamin's Cleopatra orebody would now be mined as an open pit rather than from an underground mine, ultimately forming part of the main pit.
5 Aug 2021 07:45
Centamin earnings slide as gold sales fall in first half
(Sharecast News) - Centamin reported first half revenue of $367.4m on Thursday, down 18% year-on-year, from gold sales of 203,802 ounces, down 25%, at an average realised gold price of $1,799 per ounce, up 9%.
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