(Alliance News) - Centamin PLC on Tuesday maintained its 2020 production guidance after reporting a "solid" performance for the first quarter.
The company, which operates the Sukari gold mine in Egypt, however added that the second quarter is expected to be a "lower production quarter", producing around 115,000 ounces of gold due to a reduction in underground output.
The FTSE 250-listed company produced 125,090 ounces of gold from the Sukari mine in the three months to March-end, up 8% from 116,183 ounces a year ago.
Gross revenue for the first quarter totalled USD222.2 million, generated from 139,784 ounces in gold sales at an average realised price of USD1,587 per ounce.
For 2020, the company is targeting gold production of between 510,000 ounces and 540,000 ounces at cash costs between USD630 and USD680 per ounce produced and all-in sustaining costs of between USD870 and USD920 per ounce sold.
Capital expenditure for 2020 is estimated in the range of USD150 million and USD170 million.
"The impact and potential duration of the Covid-19 pandemic remains uncertain. The company has undertaken risk analysis scenarios and has put in place contingency plans for the business and believes it has taken prudent steps to continue to navigate these difficult times," Centamin said.
Centamin has declared a unchanged dividend of 6 US cents per share for the first quarter. As at March 31, the company had cash and liquid assets of USD379.2 million, with no debt.
Shares in the company were up 1.3% at 140.35 pence each in London on Tuesday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Centamin PLC (CEY)