CELTF - Centamin: A Much Stronger H2 On Deck

2024-05-07 12:55:48 ET

Summary

• Centamin plc reported Q1 2024 production of ~104,000 ounces of gold, down 1% year-over-year.
• Unfortunately, the timing of gold sales led to a significant spike in AISC, but this was an abnormal event and not reflective at all of its normal margin profile.
• In fact, Centamin has a path to becoming a 700,000 ounce producer at ~$1,050/oz AISC with Doropo, making it one of the few stories with production and margin growth simultaneously.
• In this update, we'll dig into the Q1 results, recent developments, and where Centamin's updated low-risk buy zone lies:

The Q1 Earnings Season for the Gold Miners Index ( GDX ) is finally underway, and one of the first companies to report its results was Centamin plc ( CELTF ). The company had a softer start to the year overall with just ~21.6% of its planned annual guidance, and the unfavorable timing of sales led to lower revenue and lower margins year-over-year. However, this was largely expected because of Centamin's back-end weighted guidance and the company has a robust project in the pipeline capable of turning it into a ~700,000 ounce gold producer. In this update, we'll dig into the Q1 results , recent developments, and where Centamin's updated low-risk buy zone lies:

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