The price of shares in FTSE 250 gold miner Centamin (LON:CEY) plunged 20.04% to 129.93% (as of 10:55 BST) after the company posted production figures for the third quarter. While overall gold production was up by 16% and average sales prices improved by 8%, the company warned that costs would increase and production would fall next year due to increased waste stripping works in order to improve operations at the firm’s Sukari project.
CEO Martin Horgan commented: “The third quarter marked another solid performance, bringing 2020 year to date free cash flow generated to US$137 million, with a strong balance sheet of US$345 million in net cash and liquid assets.
“Following our operational update on 2 October, today we have refined our 2020 guidance to 445,000 – 455,000 ounces of gold produced. Reflecting the continued work required to improve operational flexibility in the open pit, 2021 production is forecast at 400,000 – 430,000 ounces. We have already commenced an increased waste stripping programme to improve optionality in the open pit, the benefits of which are expected to start to flow through in 2022“.