Egyptian gold miner, Centamin plc, has increased its interim dividend from USc0.97 per share in 2015 to USc2.00 per share after posting Q2 16 earnings of USc6.3 per share, a 78% increase on Q2 15.
The improved income performance was a result of both higher revenue and lower costs. Revenue for the quarter increased by 45%, to US$180.1 million, due to a 36% increase in gold sales, to 141.8koz, and a 7% rise in the gold price realised to US$1,268/oz.
Mill throughput in Q2 improved to 2.93mt (Q2 15: 2.88mt) but it was the increase in average head grade from 1.49g/t to 1.66g/t that led to the jump in gold production. The open pit grade rose from 0.83g/t to 0.99g/t and the grade of underground ore mined rose from 7.77g/t to 9.26g/t.
As a result of the increased gold production, in conjunction with a reduction in mine costs of 5%, AISC fell from US$758/oz in Q2 15 to US$669/oz.
Centamin has updated its full year production guidance to 520-540koz of gold at AISC of US$720- US$750/oz.
Centamin posts EPS up 78%: increases interim dividend: CEY