Centamin is a gold mining company, headquartered in Jersey and listed on the mid-cap FTSE 250 index of the London Stock Exchange.
The company has mining operations in Egypt and Cote d’Ivoire, along with exploration activities at different stages of progression in Egypt, Cote d’Ivoire and Burkina Faso.
Joshua Mahony, senior market analyst at IG, comments: “Centamin has both the guaranteed output from their Egyptian mine, and potential exploration upside in Côte d’Ivoire and Burkina Faso.
“Their Sukari mine in Egypt has an estimated 12 years worth of production left to be recovered, with the company recently boosted by the biggest upgrade in over 10 years, raising it to 1.1 million ounces. This allows the company to ramp up production while also hoping to enjoy new discoveries elsewhere in Africa.”
Its flagship asset, the Sukari Gold Mine in Egypt, aims to produce 500,000 ounces of gold a year. However, the mine suffered various setbacks in 2020, leading to a halving in the company’s share price.
The company’s share price has subsequently bounced back, recently hitting its highest level since early 2021, although it remains well below its record high in mid-2020.
There is also positive momentum in terms of the outlook for production. Mr Mahony comments: “The 2022 gold production figure of 441,000 ounces represents a 6% increase on their 2021 figure.
“This provides an alternative to Fresnillo (featured below) with greater exploration exposure and the benefit of an upward path in gold production.”
However, given the company’s dependence on gold prices, investors should expect volatility along the way.
