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(Alliance News) - Egyptian gold miner Centamin PLC on Thursday said profit dropped in the first half of 2021, as gold production declined and operating costs increased.
Centamin shares were trading down 2.4% at 103.55 pence each in London on Thursday morning.
FTSE 250-listed Centamin reported a sharp drop in half-year pretax profit, down 39% to USD116.8 million from USD192.5 million a year prior.
Revenue fell 18% to USD367.4 million from USD448.8 million and gold production dropped by 20% to 204,275 ounces from 256,084 ounces.
Operating costs, meanwhile, increased by 7.4% year-on-year to USD22.3 million in the first half from USD20.8 million.
Nevertheless, the company has maintained its full-year production and cost guidance for 2021.
Currently, Centamin expects between 400,000 and 430,000 ounces of gold production at cash costs of USD800 to USD900 per ounce, with an all in sustaining cost between USD1,150 and USD1,250 per ounce sold.
The miner's capital expenditure guidance remains around USD225 million for the full-year, plus exploration expenditure of USD17 million.
Chief Executive Martin Horgan said: "We look forward to delivering continued operating results, taking advantage of a promising gold price environment, and expect continued strong progress with our capital projects and exploration programmes in the second half."
The gold miner declared a 4.0 US cents interim dividend per share, down by a third from 6.0 cents a year earlier. Centamin said it expects to pay out 5.0 US cents as a final dividend.
"The company is financially robust with USD312 million in cash and liquid assets, providing the flexibility to invest in the long-term future of our flagship asset, Sukari, and continue to develop our active growth pipeline in Egypt and [the Ivory Coast]," Horgan added.
By the third quarter, the miner said it expects to complete the final legal formalities for its recently agreed exploration licence terms for a 3,164 kilometre square land package in Egypt's Arabian Nubian Shield zone.
In the coming year, the company said it will continue to assess its strategic opportunities for non-core asset Batie West in Burkina Faso, including potential disposal of the asset.
Meanwhile, an ongoing pre-feasibility study at the company's Doropo asset in the Ivory Coast is scheduled for completion by the second-half of 2022.
By Scarlett Butler; scarlettbutler@alliancenews.com
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