Net losses narrow and optimism grows for Centamin Egypt

Centamin Egypt (LON:CEY), the exploration and development company, announced today that their Q2 losses had narrowed and that they remain optimistic about achieving 2010 targets. 

Centamin Egypt Limited is a mineral exploration, development and mining company, which has been exploring for gold in Egypt since 1995. In 2005 the company was granted a 160km exploitation lease over the massive Sukari Hill gold project. Optimal design throughput at the Sukari Gold Project was achieved during December 2009.

For the period July to December 2009, net losses for the company were $542,000, and revenue was down $450,000, compared to the previous year where losses reached lows of $24.4 million and revenues fell to $2.1 million respectively.

Going forward, the board are optimistic they will meet their 2010 targets of more than 200,000 ounces, due to reportedly good recovery rates and a steadily growing rate of production at the Sukari plant. During the quarter, the Sukari Project produced 1,118 ounces of gold during Stage 1 ('Oxide Circuit Commissioning') of the process and Stage 2 ('Sulphide Circuit Commissioning') is expected to complete around February or March this year.  Managing Director, El-Raghy, commented: 

"The quarter saw the maiden feed through our mills at Sukari. This follows the successful completion of Stage 1 construction activities and the achievement of design throughput from the Sukari processing facility. We have also seen the first gold being exported and sold at spot prices from Sukari which represented one of the last major milestones in project execution."

El-Raghy also attributed the company's optimism to their growing presence in the marketplace: 

Corporately, our move to the Main Market of the London Stock Exchange during the quarter was another step in the Company's growth as the Company continues to evolve from a junior explorer to a significant gold producer". 

With regard to currency, the company gained $661,000 this quarter on foreign exchange, largely attributable to the strengthening Australian dollar against the US dollar. This is compared to a currency loss of $21.88 million the year prior. The sale of a plant during the second quarter also reinforced the company's quarterly gains by $886,000.