Greggs, JD Wetherspoon, and Centamin could constitute the three best FTSE 250 stocks to buy next month.17 May 2023 20:49
3. Centamin (LON: CEY)
Centamin stands out for its solid fundamentals amid the favourable gold price environment.
The company's flagship Sukari gold mine in Egypt, where it has recently commissioned a new plant and a 36MW hybrid solar farm, positions Centamin well for efficient and sustainable operations. This solar farm is the largest of its kind in the world used to power a gold mine. Additionally, Centamin is exploring the Doropo project in the Ivory Coast, which could serve as a catalyst for future share price growth.
In recent full-year results, Centamin reported impressive revenues of $788 million, selling 436,638 ounces of gold at an average price of $1,794 per ounce. Gold is now trading far higher, and there is potential for further increases if the Federal Reserve chooses to pause its monetary tightening. Centamin's gold production reached 440,974 ounces in 2022, a 6% increase compared to the previous year.
The company achieved an adjusted EBITDA of $319 million with a robust operating margin of 40%, resulting in pre-tax profits of $171 million. Importantly, Centamin maintains a liquidity position of $157 million, providing ample capital for future operations.
For 2023, Centamin has provided production guidance of 450,000 to 480,000 ounces. With the current elevated gold price, June could present an attractive entry point, especially considering that CEY shares are currently down 6.7% year-to-date.
However, it's important to monitor potential risks as more significant tightening than expected could lead to a decline in the gold price and subsequently impact CEY shares in the second half of the year.
https://www.ig.com/ae/news-and-trade-ideas/best-ftse-250-shares-to-buy-in-june-2023-230517.amp
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