EGYPT – Egypt based gold mining company Centamin has posted a 221% profit jump in the first half of 2020 as revenues received a major boost from a unprecedented rise in gold prices during the COVID-19 period.

Centamin said in a statement, that it achieved a pre-tax profit of US$191.14 million, a significant improvement compared to US$59.62 million recorded during the same period last year.

The mineral exploration and mining company attributed rise to the to an increase in production of at the Sukari mine in Egypt.

The rise in gold prices due to the demand for safe havens in light of the outbreak of the Corona virus crisis also significantly contributed to Centamin’s fortunes.

The company’s revenue during the first half increased to US$448.75 million, compared to US$288.13 million in the comparative half of 2019, marking an increase of 56 percent.

Centamin’s production on the other hand, increased during the period by 9 percent to reach 256.08 thousand ounces.

Increased demand for Gold resulted in a 21 percent increase in the volume of gold sales during the first half of the year.

Given the spectacular performance, Centamin revealed that it plans to give a second interim dividend of 6 cents per share.

The gold miner further noted that, it is still in the process of achieving a goal to produce between 510 thousand and 525 thousand ounces (ounce) of gold annually and a target for costs between $630 and $680 per ounce produced.

Centamin’s principal asset, the Sukari Gold Mine, began production in 2009 and is the first large scale modern gold mine in Egypt.

Base case production at the site is currently at c. 500,000 ounces per annum, with the potential to exceed this level as optimisation of the mining and processing operations continues.

Centamin has other advanced exploration projects located in highly prospective regions within the investor-friendly jurisdictions of Burkina Faso and Cote d’Ivoire.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE