- Centamin is one of the worst-performing gold producers over the past year, sliding more than 60% from its Q3 2020 highs.
- The significant underperformance is tied to a guidance cut related to a shift in mining plans following movement in a localized area of waste material at its Sukari Mine.
- While Centamin points to significant growth ahead (2021-2025), production is still expected to be below 2019 levels, and well below peak production levels even after operations have returned to normal.
- Single-asset producers in Tier-2/Tier-3 jurisdictions carry much higher risk, and with no meaningful growth vs. pre-COVID-19 levels for at least four years, I don't see the reward justifying the risk.
For further details see:
Centamin: Cheap For A Reason