El Salvador president proposes bill to overturn metals mining ban
In 2017, El Salvador became the first country in the world to ban forms of metals mining.
Centamin (TSX: CEE, LSE: CEY) shares fell over 20% Wednesday morning after the company announced its production would be lower than forecasted next year.
The company revealed gold production in 2021 is expected to be between 400,000 and 430,000 ounces with all-in sustaining costs (AISC) of between $1,200 and $1,275 per ounce sold, as an unstable section of its Sukari mine open pit – the only operating gold mine in Egypt – had to be avoided. Analysts expected production around 500,000.
The company recently said radar systems detected a movement in Sukari’s open-pit Stage 4 West wall, which prompted it to immediately defer open-pit mining operations in that zone. Work in the area was scheduled to start during the fourth quarter.
Centamin also reaffirmed 2020 production guidance of 445,000-455,000 ounces
Centamin reported gold production in Q3 of 128,240 ounces — down 2% compared to Q2 — bringing production for the nine months of the year to 384,324 oz.
Sales declined 9% to 118,617 ounces, but this was offset by a 12% increase in average prices–to $1,933 per ounce.
Revenue for the quarter was $230 million, 43% higher than a year earlier.
Centamin also reaffirmed 2020 production guidance of 445,000-455,000 ounces, with AISC of $950-$1,050 per ounce. Free cash flow expectations are $135 million-$145 million.
Midday Wednesday, Centamin’s stock was down 19.2% on the LSE. The company has a C$3 billion market capitalization.
