* H1 EBITDA beats consensus by 8%
* Looking for partner/buyer for Batie West project
* H1 dividend cut, shares fall 3%
(Adds H1 EBITDA, shares, analyst)
By Shanima A
Aug 5 (Reuters) - Gold miner Centamin reported a
smaller than expected fall in first-half earnings on Thursday
and said it was looking for a buyer or partner for its Burkina
Faso project.
The London-listed miner, which operates the Sukari Gold Mine
in Egypt, said an internal review showed the Batie West project
in Burkina Faso did not meet its investment criteria.
First-half earnings before interest, taxes, depreciation,
and amortisation (EBITDA) came in at $190.4 million, down from
$256.2 million a year earlier, but 8% ahead of analysts' average
estimate.
Earnings fell largely due to a planned reduction in gold
production at Sukari, which pushed overall output lower by 20%
year-on-year to 204,275 ounces, the company said.
The production cuts are part of a three-year reset plan for
the Sukari mine.
Centamin shares, part of the FTSE midcap index, were down 3%
to 102.85 pence at 0955 GMT.
Investors seem to be taking a "wait and watch approach,"
said BMO Capital Markets analyst Raj Ray.
"The market will be looking to the Sukari Phase 2
life-of-mine review in Q4/21 to get a better idea for the
long-term potential of the Sukari asset. So despite earnings
exceeding expectations ... there does not seem to be a rush to
own the stock at this point."
Average realised gold prices rose 9% in the first half,
Centamin said, as safe-haven buying due to the COVID-19 pandemic
boosted bullion prices.
The company also declared an interim dividend of 4 cents per
share, down from 6 cents a year earlier. It kept its guidance
for production, cost and capital spending for the full year.
(Reporting by Shanima A in Bengaluru
Editing by Uttaresh.V and Mark Potter)
Centamin PLC (CEY)
