Egyptian pound edges higher against dollar in early Monday trade    Egypt backs Sudan sovereignty, urges end to El-Fasher siege at New York talks    Egyptian pound weakens against dollar in early trading    Egypt's PM heads to UNGA to press for Palestinian statehood    As US warships patrol near Venezuela, it exposes Latin American divisions    More than 70 killed in RSF drone attack on mosque in Sudan's besieged El Fasher    Al-Wazir launches EGP 3bn electric bus production line in Sharqeya for export to Europe    Egypt, EBRD discuss strategies to boost investment, foreign trade    DP World, Elsewedy to develop EGP 1.42bn cold storage facility in 6th of October City    Global pressure mounts on Israel as Gaza death toll surges, war deepens    Cairo governor briefs PM on Khan el-Khalili, Rameses Square development    El Gouna Film Festival's 8th edition to coincide with UN's 80th anniversary    Cairo University, Roche Diagnostics inaugurate automated lab at Qasr El-Ainy    Egypt expands medical, humanitarian support for Gaza patients    Egypt investigates disappearance of ancient bracelet from Egyptian Museum in Tahrir    Egypt launches international architecture academy with UNESCO, European partners    Egypt's Sisi, Qatar's Emir condemn Israeli strikes, call for Gaza ceasefire    Egypt's Cabinet approves Benha-Wuhan graduate school to boost research, innovation    Egypt hosts G20 meeting for 1st time outside member states    Egypt to tighten waste rules, cut rice straw fees to curb pollution    Egypt seeks Indian expertise to boost pharmaceutical industry    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egyptian, Ugandan Presidents open business forum to boost trade    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Centamin Egypt cuts gold output forecast, shares plunge
Along with a supply disruption in the first quarter the company has been forced to reduce its 2011 production guidance to 200,000-210,000 ounces from 250,000-290,000 ounces
Reuters Published in Ahram Online on 02 - 08 - 2011

Gold producer Centamin Egypt has cut its output forecast for 2011 after announcing lower than expected production in the second quarter due to local restrictions on blasting pushed its shares down as much as 25 per cent.
The company said it is confident that the blast issues will be resolved in the third quarter.
However, along with a supply disruption in the first quarter the company has been forced to reduce its 2011 production guidance to 200,000-210,000 ounces from 250,000-290,000 ounces and to raise its average cash cost forecast to about $550 an ounce from $450.
"Whilst imports and deliveries of blast products have returned to normal and sufficient quantities exist ... daily restrictions imposed by local blast inspectors drastically curtailed mine production activities during the quarter," the company said.
The shares were down 22 per cent at 0755 GMT, with the announcement wiping over 300 million pounds from the company's value.
The stock, which has dropped 65 per cent in 2011 as production issues added to concerns about the political unrest in Egypt earlier this year, is at its lowest level since October 2009.
"Results are disappointing and are below our estimates due to continuing logistic issues with the blasting products as well as daily restrictions imposed by the local blasting inspectors," said analysts at Canaccord Genuity.
Centamin produced 47,991 ounces in the second quarter from its sole producing mine, the Sukari project in Egypt, taking half-year output to just over 93,000 ounces.
Still, second-quarter operating profit rose to $48.2 million from $19.1 million in the year-earlier quarter on higher production and gold prices.
Centamin -- alongside rivals Randgold Resources, African Barrick Gold and Petropavlovsk -- all encountered production problems last year, resulting in the top four biggest pure gold producers in London reducing their 2010 targets.
"Given that we have now had production downgrades for both years since production start-up, we believe it is prudent to assume more conservative production estimates for the medium term," said analysts at Bank of America Merrill Lynch.

Clic here to read the story from its source.