Centamin PLC Share News (CEY)

(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.