UK markets closed
  • NIKKEI 225

    27,753.37
    -182.25 (-0.65%)
     
  • HANG SENG

    23,788.93
    +130.01 (+0.55%)
     
  • CRUDE OIL

    66.06
    +0.49 (+0.75%)
     
  • GOLD FUTURES

    1,765.60
    -18.70 (-1.05%)
     
  • DOW

    34,722.58
    +700.54 (+2.06%)
     
  • BTC-GBP

    42,720.12
    -702.60 (-1.62%)
     
  • CMC Crypto 200

    1,443.36
    +4.48 (+0.31%)
     
  • ^IXIC

    15,395.93
    +141.88 (+0.93%)
     
  • ^FTAS

    4,063.89
    -25.30 (-0.62%)
     

UK gold miner Centamin seeks buyer for W. African project

  • Oops!
    Something went wrong.
    Please try again later.
·1-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

By Shanima A

(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 BengaluruEditing by Uttaresh.V and Mark Potter)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting