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Centamin Egypt: first exports of gold a signal to keep buying
From a Questor tip of 2009 to a tip of 2010. Centamin Egypt, one of the success stories of last year, has reached yet another milestone it is now commercially producing gold.

By Garry White, Questor Editor
Published: 5:30AM GMT 12 Jan 2010

The company said on Monday that it had started exports of gold to Johnson Matthey, which will refine the metal.
Sukari is the first modern commercial gold mine to be operated in Egypt, and has a current mineral reserve of 142m tonnes at a grade of 1.4 grams per tonne.
The company is expected to produce about 95,000 oz of gold in the year to June 2011, but some analyst believe that peak production could be as much as 500,000 oz of gold each year.
At the end of the last quarter, the company had $59m (36.5m) in cash, which is more than it needs to finish its current underground development plans. Gold production remains unhedged, so the group will be exposed to any movements in the gold price.
Analysts remain bullish on group prospects, with broker Ambrian naming the company as one of its top gold picks for 2010.
The group is currently loss-making and is not paying a dividend, but the Questor believes the shares remain a buy, despite rising 220pc since January 5 2009.