Centamin has reported EPS of USc0.55 for Q3 15, down significantly from the USc1.39 posted in the corresponding quarter of 2014, and the EPS of USc2.50 in Q1 15 and USc1.65 in Q2 15. Despite a 13% increase in gold production in Q3, to 105 koz, and cash costs that were generally in line with the previous year at US$767/oz, earnings were affected by a fall in the realised gold price from US$1,267/oz to US$1,131/oz and a 36% increase in depreciation and amortisation. This latter item derives as a result of the reserve update in mid-year and a consequent amortisation charge for capitalised underground development.
Earnings included an exceptional provision of US$11.2 million against mine production costs as a result of a decision by Chevron to stop supplying diesel to the Sukari mine at local subsidised prices (which the company is disputing through a legal process).
As at 30 September 2015, the company had cash of US$216 million and was debt-free.
The company’s gold production guidance for 2015 remains at 430-440 koz at a cash cost below US$700/oz and AISC below US$950/oz.
Centamin’s earnings hit by lower prices: CEY