Shares in Centamin (LSE: CEY) fell over 4% in early trade this morning, despite positive results from the second quarter and first half of the year.
The drop comes after the price of gold continued to fall, which affected earnings per share to the tune of 28%, dropping to 4.75 cents from 6.60 cents per share in Q1 2013.
However, the gold-mining company once more saw record gold production at 93,624 ounces in the Sukari mine, a rise of 8% compared to the first quarter of the year and an increase of 39% against Q2 2012.
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Chairman Josef El-Raghy commented:
“The second quarter saw continued improvements in mining and processing productivity at the Sukari operation which, combined with average grades in line with the mine plan, delivered a third successive quarter of record output.
“With commissioning activities likely to see reduced throughput in Q4 and the benefit of additional Stage 4 throughput to be seen in 2014 our full year guidance of 320,000 ounces remains unchanged.”
Investors weren’t given any further news on the Supreme Administrative Court appeal and Diesel Fuel Court Case, both described as “ongoing”.
If the results of these are favourable to Centamin, though, and the price of gold takes a positive turn, then the shares at today’s price of around 37p could provide a bargain for adventurous growth investors.
Indeed, you may wish to consult this free Motley Fool report, which explains how betting on battered shares can provide wonderful gains… if the underlying company recovers. To put a possible turnaround into perspective, Centamin’s shares reached a peak of 197p before the Egyptian troubles erupted.
Anyway, if Centamin is tempting you today, please click here to read the Fool’s exclusive ‘millionaire’ report before you hit the ‘buy’ button.
> Sam does not own any share mentioned in this article.
