Centamin Egypt's 3Q Profit Triples on Higher Gold Prices

Centamin Egypt Ltd. posted quarterly net profit almost three times the year-ago level, boosted by higher gold prices, and said it was on track to hit its revised 2011 gold production target.

The miner said on Monday third-quarter profit came in at $43.4 million, compared with $14.7 million a year ago, as revenue more than doubled thanks to higher prices, offsetting higher production costs and unfavourable foreign exchange shifts.

Cash operating costs came in at $365 per ounce, $3 an ounce lower than a year ago and 5 percent above the previous quarter.

The company said the average gold sales price received was$1,721 per ounce in the quarter to end-September, up 39 percent on last year.

Earlier this month, Centamin said production hit 50,539 ounces of gold in the third quarter, putting it on track to hit its 2011 production target of 200,000-210,000 ounces, revised after restrictions on blasting hit output.

The Sukari Gold Project has performed in line with management expectations in August and September, generating strong earnings once again and underpinning gold production, which will deliver on the production guidance given for 2011, Chairman Josef El-Raghy said.