Centamin (CEY) has reported its best quarter since 2018. Higher production and lower costs, combined with the high gold price, took adjusted free cash flow up to $102m (£81m) for the first half - almost triple last year’s figure.
While the interim dividend payment will be announced next month, Centamin’s policy is 30 per cent net cash flow and chief executive Martin Horgan said that the board would look at taking the pay-out level above that.
The production boost came from hitting a higher-grade section in Sukari’s underground mine, which was meant to be reached in the second half of the year. Gold output was flat from the open pit part of the mine.
Mr Horgan said the company had M&A options on the table, but with gold at $1,800 an ounce (oz), it is a sellers’ market. Centamin also has expansion options through its two West African projects, Doropo and ABC. The company has recently brought on a former colleague of Mr Horgan’s from Toro Gold, who is conducting a geological and engineering review of the projects. New mineral resource estimates are expected from both by the end of the year, and will make their development prospects clearer.
