Mineral exploration and development company Centamin Egypt Limited (CEY.L), Friday, posted a narrower loss for the second quarter, reflecting foreign currency fluctuations and a gain from sale of plant and equipment. The company also said that it has seen the first gold from Sukari project being exported and sold at spot prices.
Centamin's principal asset is its interest in the Sukari Project located in the Eastern Desert of Egypt. The project is at an advanced stage of development, with construction having commenced in March 2007 and the first gold bar being produced in June last year.
According to managing director and chief executive officer Josef El-Raghy, the company remains on track to hit its production target of over 200,000 ounces of gold in the current calendar year, given the rate of production and the recovery rates reached so far.
For the quarter, the company registered a narrower loss of $1.33 million compared to $21.23 million in the prior-year period.
Quarterly results included a foreign exchange gain of $661 thousand, attributable the strengthening Australian dollar against the US dollar. The prior-year period had a hefty foreign exchange loss of $21.88 million, attributable to the depreciation of the company's previous Canadian dollar holdings against the US dollar. The company also recorded $886 thousand gain on the sale of plant and equipment to a third party during this year's second quarter.
Revenue for the quarter slipped to $148 thousand from $999 thousand, due to the lower average cash holdings and lower average interest rates applicable to cash holdings.
The company produced 1,118 ounces of gold for the quarter, through the Stage 1 or oxide circuit commissioning activities of the Sukari project. The Stage 2 or sulphide circuit construction is well advanced with completion scheduled for February or March, the company said.
El-Raghy stated, "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."
For the six months ended December 31, 2009, net loss was $542 thousand or $0.05 per share compared to a loss of $24.43 million or $2.78 per share in the comparable period last year. Revenue for the period declined to $450 thousand from $2.11 million last year.
"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," Raghy added.
CEY.L shares are currently trading at 120 pence up 1.25 pence or 1.05% on the London Stock Exchange.
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