Shares in gold producer Centamin took off climbing as much as 5.5 per cent in early trading on Thursday to close 1.13 per cent higher as the Egypt-focused miner reported a 10.5 per cent increase in third-quarter output, thanks to higher-grade ore mined at its flagship Sukari mine.
The company also maintained its full-year production forecast of 420,000 ounces of gold.
The firm mined 93,624 ounces of the yellow metal in the three months to the end of September, compared to 81,281 in the second quarter this year.
The total output from Sukari, the company’s only producing mine, stood at 249,146 ounces in the nine months to September. This is about 170,800 ounces short of the full-year target.
“Underground mining rates remain strong and ore grades have returned to expected levels,” said Josef El-Raghy.
He added the firm expected further increases in plant throughput during the coming quarters, as well as better average grades.
Sukari Gold Mine is loacated west of Marsa Alam in Egypt
The company also said it was in the final stage of talks with the Egyptian government, seeking approval to increase the amount of ammonium nitrate it uses as explosives for open pit mining.
Centamin problems in Egypt go back to 2012, when a court cancelled its mining license for Sukari, the firm’s only producing mine, and the country’s first large-scale modern gold operation.
Last year, a 400 kg gold shipment from Sukari was prevented from leaving Egypt as authorities claimed Centamin needed a permit from the national petroleum ministry to do so.
Both the Egyptian General Petroleum Corporation (EGPC) and Egypt’s Mineral Resources Authority (EMRA) said in mid-December 2012 that their dispute with Centamin had been settled and that they would authorise the firm’s gold shipments.