Centamin shares tumble on lower than expected gold production forecasts

Shares of London-listed gold miner Centamin “fell down a mine shaft,” City AM reports. The stock slid c. 28% after the company’s lower than expected forecasts for gold production from its Sukari mine in Egypt, the Financial Times reported. Centamin expects to produce between 490k and 520k ounces of gold at Sukari this year, which would be higher that 2018’s 472k ounces but still lower the more than 544k ounces produced in 2017. The company also said its revenues fell 11% y-o-y in 2018 to USD 603.2 mn.

Operational challenges behind the drop: Centamin cited operational challenges as being behind lower production in 2018. The company invested USD 100 mn in developing the Sukari mine in 2018.