|Bid||99.46 x 0|
|Ask||99.52 x 0|
|Day's range||99.02 - 103.15|
|52-week range||69.60 - 165.40|
|Beta (5Y monthly)||0.81|
|PE ratio (TTM)||11.17|
|Earnings date||05 Aug 2021|
|Forward dividend & yield||0.05 (5.12%)|
|Ex-dividend date||02 Sept 2021|
|1y target est||1.30|
(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. 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.
Gold is hovering around the $1,900 an ounce mark, which means the precious metal’s price has risen by 55pc over the past five years and trades at barely 7pc below last autumn’s record high. By contrast, shares in Centamin, the gold miner, are no higher than they were in June 2016 and stand at barely half the peak reached last year. It is therefore tempting to argue that either the gold price or the share price is “wrong” – and given the current macroeconomic backdrop this column’s inclination is to believe that the share price is too low rather than the gold price too high, even allowing for Centamin’s history of operational disappointment. America’s Federal Reserve, the Bank of Japan, the European Central Bank and the Bank of England are showing little or no inclination to tighten monetary policy. This is despite the fact that near-zero interest rates and quantitative easing were described as emergency policies when they were introduced in the West in 2008-09 and despite signs that inflation is gathering – last month’s 4.2pc year-on-year rise in the US consumer price index was the fastest rate of advance in more than a decade. The central banks’ view is that this surge will be temporary because it is partly the result of pent-up demand and supply-chain dislocations as lockdowns ease and partly due to the low base for comparison offered by the economic downturn of 2020.
Shares in the FTSE 250 miner nosedived 20% as it revealed gold production in 2021 is expected to be between 400,000 and 430,000 ounces.