Centamin Shares Edged Higher on Upbeat Q3 Results. What Next?

Key points:
Centamin shares edged higher on upbeat Q3 results.
The company achieved several crucial milestones during the period.
The firm is on track to meet its 2022 targets on multiple fronts.

The Centamin PLC (LON: CEY) share price edged higher after releasing its financial results for the three months ended 30 September 2022. The gold mining company extracted its five millionth ounce of gold during the quarter and went on to mine 127,512 ounces during the three months.

The company also recorded no Lost Time Injuries (LTI) in the third quarter, a significant milestone for a mining company, given how common injuries are in the industry. The firm attributed the high production figures to the planned higher grades from the open pit and underground mining at its Sukari mine.

Also read: The Five Best Gold And Gold Mining Stocks To Buy Now.

Investors cheered that despite producing five million ounces of gold, the Sukari mine in Egypt still had proven and probable gold reserves of 5.8 million ounces of gold as of 30 June 2021. The company also highlighted the high quality of the Sukari mine.

Centamin generated revenues worth $218.1 million during the quarter after selling 126,610 ounces of gold at a realised price of $1,720 per ounce. The company has generated $599.9 million in revenues since the year started having sold 330,200 ounces of gold.

The gold mining firm noted that it had finally commissioned the solar power plant at the Sukari mine, which was currently delivering the planned power capacity and was helping the firm cut the use of diesel at the plant by up to 70,000 litres daily.

Centamin’s capital projects, such as the underground infrastructure and equipment upgrades, the underground paste-fill plant and plant optimisation, are progressing as scheduled since they are part of its reinvestment programme to optimise the plant’s operation.

Centamin is on track to meet its full-year production target of 430,000 to 460,000 ounces, with costs averaging between $900 and $1,000 per ounce produced and all-in sustaining costs (AISC) in the range of $1,275 to $1,425 per ounce.

So, are Centamin shares a buy? The answer is maybe. The company’s share price trades volatilely between gains and losses, which one must be comfortable with before buying.

*This is not investment advice.

Centamin share price.