Centamin Plc (LON: CEY) is targeting the bottom end of 2019 guidance, following strong October production figures.
The FTSE250 (INDEXFTSE: MCX) listed gold miner, which owns the Sukari mine remained confident in their ability to meet guidance figures.
Gold production in Q3 was 98,045 ounces, seeing a 17% from the previous quarter and 17% lower than the previous year.
Gold sales in this quarter were 108,826 in the third quarter. This saw a 3% fall, but a 2% rise in the prior year.
These sales delivered $160.8 million in revenue.
For the first nine months of 2019, Centamin has produced 332,141 ounces of gold, 1% lower than a year before.
Chief Executive Andrew Pardey said: “This quarter was one of continuing transition. Further key staff changes were made at Sukari as we continue to strive for increased performance in key areas of the operation.The operational leadership team have commenced a comprehensive review, supported by external consultants, across all sections of the mine, including mining methodology and infrastructure.”
The company have stated that the Sukari pit has improved grades, with better mining rates at the high grade end. Underground production exceeded targets along with this.
Speculating on the final quarter of the year, Centamin are expecting strong cash flows due to improved gold quality and lowered costs, meaning the final dividend will likely be a minimum of 4 US cents.
Additionally, Centamin paid an interim dividend four cents this year. This would result in a full year pay out of eight cents.
At the Sukari plant, Centamin is looking to develop further. They have plans to build a 30 megawatt solar plant to provide a new power source for mining to reduce carbon emissions,
There also have been “excellent” drilling results during the quarter at the mine, which gives investors a positive outlook.
In the mining sector, Serabi Gold Plc (LON: SRB) have shown strong production figures in their third quarter. Kavango Resources Plc (LON: KAV) have seen their shares climb and URU Metals Ltd (LON: URU) had a new mining application accepted.