By Christian Moess Laursen
Gold miner Centamin's third-quarter production soared, leading to a surge in cash flow amid record-high prices for the precious metal.
The London-based mining company said Thursday that it dug 131,726 ounces of gold in the third quarter, up 30% from the same period last year, driving a 44% jump in gold ounces sold.
The burst in output compared with last year was driven by its flagship Sukari mine in Egypt, which has been ramping up this year following large investments in the project.
"This strong performance follows our significant investment in operational improvements which positioned us to capitalize on the current record gold price," Chief Executive Martin Horgan said.
Prices have gone up 30% over the last 12 months, setting multiple all-time highs during the year, on the back of safe-haven demand and hopes of interest rate cuts, bolstering the coffers of producers.
This spurred South African gold major AngloGold Ashanti to put in a bid for Centamin last month, valuing the smaller miner at $2.5 billion. The board of Centamin has unanimously recommend the deal to shareholders.
The improved production resulted in $103 million in free cash flow in the quarter for Centamin, an eight-fold rise on year.
The miner expects the production rate to be sustained for the rest of the year, as it reaffirmed its 2024 production and cost guidance ranges.
Write to Christian Moess Laursen at christian.moess@wsj.com
(END) Dow Jones Newswires
October 17, 2024 03:05 ET (07:05 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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