Centamin Bucks Trend, Posts Increased Output

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VENTURES AFRICA – London-listed gold miner, Centamin, on Tuesday said its Egyptian mine had posted a marked increase in quarterly production despite the mounting political crunch in the North African country.

This announcement came as the new military government in Egypt increased its clampdown on former president Mohamed Morsi’s Islamist factions.

Egyptian armed forces had fired at hundreds of Morsi supporters, killing more than 50 people who demonstrated demanding that he (Morsi) be brought back to power.

Six days ago, the Egyptian forces deposed Morsi, substituting his regime with an interim government.

Andy Davidson, head of business development at Centamin, told Reuters he was not clear what the change of government would mean for the gold miner.

“There are no signs yet that it’s affecting operations at all,” Davidson told Reuters.

Centamin said in the three months ended June, output at its only mine in Egypt has surged to 93,624 ounces. This was 39 percent above the corresponding period last year.

“Our enthusiasm for the Sukari asset is … reinforced by these figures. We continue to watch political developments in Egypt closely,” Peel Hunt analyst, Maurice Mason, told Reuters.

Like its competitors, Centamin, has got to deal with the problems brought about by the limper price of the precious metal.

But the company is not considering re-looking at its Egyptian strategy.

 

 

 

 

 

 

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