Higher gold price increases earnings for Centamin

Egyptian gold mine operator Centamin (LON: CEY) (TSX: CEE) on Tuesday reported a staggering 280% increase in net income for the first half of 2020 compared to the same period last year, reflecting higher production from its flagship mine Sukari, falling costs and skyrocketing metal prices. The company reported net income of $ 74.8 million, up from $ 19.7 million for the first half of 2019. Production also increased - 9% to 256,084 ounces, while the average Gold Price climbed 27% to $ 1,657 an ounce. Sukari, which began operations in January 2010, includes a large open pit and an underground mine. The facility, the only operating gold mine in Egypt, remains on track to meet 2020 production targets of 510,000 to 525,000 ounces of gold. Centamin, which ended talks with Endeavor Mining (TSX: EDV) about a possible acquisition earlier this year, said the company had 186% higher free cash flow of $ 101.96 million. That number came after Egypt had paid out $ 114 million in profit shares and royalties. The miner also declared a second interim dividend of $ 0.06 per share, which is 68% of his free cash flow. The company will pay the dividend to shareholders in September, it said. The company has proven resilient to recent challenges beyond those caused by the Covid-19 pandemic. After about six months without a top boss, it appointed Martin Horgan as its new CEO in April. Centamin has also gone through some major board changes. This includes Josef El-Raghy's move from executive chairman to chairman, 18 years after his appointment as managing director.