Gold miner Centamin said production fell by 25 per cent in the second quarter due to low grades of the metal at its mine in Egypt.
The miner said it was progressing through a “transitional zone” at the Sukari mine and “materially stronger” production is expected for the second half of this year.
Centamin surprised the market in May by cutting its full year production guidance. The company said Monday it maintains that guidance of between 505,000 to 515,000 ounces of gold.
Gold production for the six months ending 30 June fell by 7 per cent to 217,099 ounces, Centamin said. For the second quarter the company produced 92,803 ounces of gold.
“We have experienced several challenges this year, resulting in the revision of our full year guidance in May,” Andrew Pardey, chief executive, said.
“I am pleased to report progress throughout June in the open pit, where mining has begun to access improved grades as we are currently mining through the lower areas of the transitional zone and into the sulphide ore, which will be mined in the third quarter and onwards for the next four years.”