Centamin Reports Strong Q3 Gold Production and Cash Flow

In a recent report, Centamin plc revealed encouraging Q3 2024 gold production and a significant increase in free cash flow. Positive operational momentum from the Sukari Gold Mine is expected to influence stock performance positively.

Date: 10-09-2024

AI Rating: 7

Centamin plc has provided significant updates that are likely to impact its stock price. The report highlights a gold production of 93,278 ounces in Q3 to date and total gold sales of 102,563 ounces. Such production levels demonstrate the company's operational strength at the Sukari Gold Mine.

Additionally, as of 31 August 2024, Centamin reports cash and liquid assets totaling US$244 million, with total liquidity reaching US$394 million, including an undrawn US$150 million revolving credit facility. This solid cash position indicates financial stability, which is crucial for investors.

The CEO's comments reveal that the operational momentum, which began in Q2 2024, has continued positively into July and August. This sustained performance led to a generation of US$76 million in free cash flow for the initial two months of Q3, a considerable increase of 77% compared to the US$43 million generated in the first half of the year. Such improvement enhances the outlook for cash returns to shareholders.

For the entire year of 2024, Centamin maintains its expectation for gold production to fall within the range of 470,000 - 500,000 ounces, while also upholding its capital expenditure guidance at US$215 million. Positive guidance for production coupled with maintained capex suggests a well-managed operation, potentially attracting further investments.

Stocks: CELTF CEY.L CEE.TO