JOHANNESBURG (miningweekly.com) – Dual-listed Centamin on Wednesday reported a significant decline in earnings for the third quarter of 2013, on the back of impairments, lower gold production and a drop in average realised gold prices.

The group reported a 51% cut in after-tax profit for the three months ended September 30, to $29.6-million, compared with a profit of $60.1-million in the third quarter of last year.

Basic earnings a share from the Egypt-based Sukari gold mine fell to 2.72c in the period under review, down from the 5.52c a share reported in the corresponding quarter the year before.

Centamin said it had incurred a $11.9-million impairment loss during the period under review with regard to its investment in Nyota Minerals, as well as experiencing an increase in the unit cash costs of production.

Earnings before interest, tax, depreciation and amortisation fell to $43-million in the third quarter of 2013, compared with the prior year’s $67-million, with depreciation and amortisation increasing to  $13.6-million, owing to an increase in the underlying capitalised preproduction costs and mine development properties.

The group’s cost of sales increased 78% to $73.3-million, with the quantity of tonnes moved at the large-scale, low-cost Sukari increasing by 51% and tonnes treated by 46%, pushing mine production costs up 85% to $59-million.

Centamin’s cash production costs of $693/oz were in line with the 2013 full-year guidance of $700/oz.

The Egypt-focused miner said revenue for the quarter under review reached $120-million – a 16% rise on the $103-million earned in the third quarter of 2012.

The average gold sales price declined to $1 329/oz, from $1 364/oz in the the preceding quarter, with 90 341 oz sold, down from 98 325 oz in the second quarter.

“Our balance sheet remains strong, with $156.4-million in cash, bullion on hand, gold sales receivables and available-for-sale financial assets as at September 30, and we remain committed to our unhedged position and 100% exposure to the gold price,” said Centamin chairperson Josef El-Raghy.

Further, Centamin noted that the mine’s 2013 production remained on track for a further year-on-year increase of more than 20%, as the group potentially exceeded the full-year production guidance of 320 000 oz at $700/oz cash operating cost.