07:37 AM EDT, 07/13/2020 (MT Newswires) -- Centamin (CEE.TO) up 2% in UK trade, reported that Q2 2020 gold production from its Sukari Mine was approximately 131,000 ounces, above forecast. This brings production for the first six months of the year to 256,084 ounces. The higher production is due to an increase in mill feed head grade and the deferral of planned maintenance programs from Q2 to H2, resulting in more tonnes processed and greater production volumes, the company said. The deferred maintenance was a precautionary measure due to COVID-19, to reduce non-essential third-party traffic on site, and will be carried out in H2.

Cash costs for Q2 was US$625 per ounce produced (H1: US$642/oz) and all-in sustaining costs was US$900 per ounce sold (H1: US$901/oz), ahead of schedule and reflecting increased production volumes.

The company is on track to meet 2020 full year guidance with production range narrowed to between 510,000-525,000 ounces. Cost guidance is unchanged with cash costs of between US$630-680 per ounce produced and AISC of between US$870-920 per ounce sold.

Gold sold was 130,745 ounces, a 16% improvement YoY, in line with higher production. Stronger gold price resulted in a 32% increase YoY in the average realised price of gold to US$1,731 per ounce. Gross revenue for the quarter was US$227 million, a 54% improvement YoY.

Net cash generated from operating activities was US$144 million, a 151% improvement YoY. After Sukari profit share distribution and group investing activities, Group adjusted free cash flow was US$56 million, a 196% improvement YoY, driven by increased gold sales and increased gold price.

Under the terms of the Concession Agreement with its Egyptian partners, EMRA, on July 1, 2020, the profit share mechanism changed to 50:50, from 55:45 in favour of Centamin, and will remain at this level for the remainder of the tenure.