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Shares of FTSE 250 constituent Centamin plc (LSE:CEY) climbed up earlier today after the Egypt-focused gold producer said it beat target production output for 2012, whilst also partly shedding light into alleged suspension of gold exports on hold at the ports of the Islamic state circulating around last week.
In a statement, Centamin disclosed it produced some 262,958 ounces for the 12 months ending 31st December 2012, five percent more than the 250,000 ounces guidance it set for itself.
“The team at Sukari has delivered a very strong set of operating results, with a record output for the quarter bringing full year production ahead of guidance,” stated Centamin’s Chairman of the Board, Josef El-Raghy.
“All areas performed well and the results are particularly pleasing given the challenges faced during the year,” he continued.
According to El-Raghdy, this was the third year consecutive year of continued growth in production. With the latest count, the company has now produced over six hundred thousand ounces of the precious yellow metal since it started production in 2010.
In response to rumours that the Centamin’s gold exports had been halted again last week by customs officials, the company downplayed the scenario by saying there were only “delays” encountered with customs officials.
Centamin’s gold exports has been sporadically suspended several times last year, as the company faced the possibility of losing their 30-year concession licence over a missing document certifying the approval of the same by the country’s Ministry of Petroleum and Mineral Resources.
On 13th December 2012, Centamin suspended operations at their flagship Sukari Mine after state-owned Egyptian General Petroleum Corporation (EGPC) moved to stop authorising the delivery of fuel to the said mine, located some 700 kilometres from the capital, Cairo, unless the company paid some US$65 million worth of unpaid fuel supplied to the mine between December 2009 and January 2012.
Days after, fuel supply was restored and gold exports, which were also halted by customs officials on orders from the cabinet, were resumed, prompting market analysts to provide a grim outlook for the London-listed firm’s fate in the Islamic state under a new leadership following a political upheaval in 2011.
Shares dipped to a four-year low of 27.70 pence on 13th December 2012 and since then, analysts continued to be cautious of the gold miner’s position in the Arab state.
Earlier today, however, positive market reaction moved Centamin’s share price up as much as 57.99 pence, over 30% more than yesterday’s close and above its value the day before the company suspended operations.
At 12:30 GMT, over 22 million shares have been traded whilst share price mellowed down to 50.05 pence.
