JOHANNESBURG (miningweekly.com) – Dual-listed Centamin marked a solid start to the new financial year as it delivered higher production and financial improvements in the first quarter.

For the three months to March 31, Centamin achieved a 6% quarter-on-quarter and 16% year-on-year increase in gold output, along with an 11% increase in gold sales, an 8% rise in the average realised gold price and revenue of $148.1-million, a 9% hike on the corresponding quarter the year before.

"The first quarter marked a solid start to the year, with a 42% quarterly increase in earnings before interest, taxes, depreciation and amortisation to $67.5-million, driven by production at Sukari of 125 268 oz of gold and a continued downward trend in costs,” said CEO Andrew Pardey.

Basic earnings a share of 3.56c were up some 3.75c on the preceding quarter and 1.06c higher than that of the first quarter of 2015.

Centamin achieved a 10% reduction in the cash cost of production to $603/oz, along with all-in sustaining costs (AISC) of $758/oz.

“The quarterly reduction in unit cash cost of production was primarily a function of both the higher gold production and also an 8% decrease in mine production costs to $71.6-million,” Centamin noted.

The gold miner maintained its full-year production guidance of 470 000 oz, at a cash cost of $680/oz and an AISC of $900/oz.

“With gold output now established at target levels for the expanded Sukari operation, we remain focused on realising further increases in productivity and cost efficiencies.

“While our forecasts remain unchanged, we continue to note that optimisation of the mining and processing operations is ongoing and offers the potential in the coming quarters to deliver increased gold output and lower costs than this base case outlook,” Pardey added.

Centamin remained debt-free and unhedged with cash, bullion-on-hand, gold sales receivable and available-for-sale financial assets of $275.7-million as at March 31.