In the past month the share prices of Centamin (LON: CEY) (CEY.L) and Polymetal (LON: POLY) (POLY.L) have risen by 6% and 10% respectively. They have also released investor updates during that time.
Centamin released a first quarter report on 22 April for the three months to 31 March. Gold production from the company’s Sukari mine was 104,047 ounces. That is in line with guidance. The firm moved a record quarterly total material of 22.8 million tonnes. This was driven by improved operating efficiencies and the start of an accelerated waste-stripping programme.
For the quarter, the FTSE 250 company delivered revenue of $190 million from gold sales of 106,573oz. The average realised price for gold was $1,778/oz sold. Cash costs of $733/oz and all-in sustaining costs of $1,091/oz were recorded in the quarter.
After capital expenditure of $37 million and a distribution of $27 million to the Egyptian government in royalties, Centamin had $9 million in free cash flow for the quarter.
The firm has maintained its gold production and cost guidance for the full year. It expects to produce between 400,000oz and 430,000oz for the full year at a cost of $800-900/oz. All-in sustaining costs for the full year are forecast to be between $1,150 and $1,250 per oz sold.
In addition, the firm has maintained its expectation that capital expenditure will amount to $225 million for the full year. It is due to be weighted towards the second half of the year and will be focused on the Sukari solar project.
The Centamin share price has fallen 34% in the past year, while it is down 10% in the past five years. The gold miner’s next investor update is scheduled to be released on 11 May when it holds its AGM. Its shares are trading at 108p at the time of writing.
Fellow gold miner Polymetal has also released share price news in the past month. Its first quarter update was released on 22 April. It showed that gold equivalent production grew by 3% year-on-year to 375Koz. It delivered an all-time highest quarterly production from Varvara and strong performance across other assets, according to its update. This helped to offset the planned grade-driven decline at Kyzyl.
The firm’s revenue for the quarter increased by 20% to $593 million. It benefited from rising gold and silver prices. Net debt decreased by $29 million to $1.32 billion as a result of positive free cash flow generated during the quarter.
Polymetal reaffirmed its production guidance of 1.5Moz gold equivalent for the full year. It also expects costs of $700-750/gold equivalent ounce, with an all-in sustaining cost of between $925 and $975 per ounce.
The company confirmed that construction and development activities at Nezhda and POX-2 remain on schedule despite continued tightness in the construction contractor market and Covid-19 travel restrictions.
There have been two director deals in Polymetal shares during the past month. Non-executive director Ollie Oliveira made two separate buy transactions on 12 April and 27 April. They were for total considerations of around £10.5k and £20.3k, respectively.
Over the past year the Polymetal share price has fallen by 7%. In the past five years it has gained 115%. The firm is due to release its first half results on 25 August. It currently trades at 1524p.
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Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.