Fortune favors the gold: Egypt sees record profits

Sun, 2020-08-30 21:41

CAIRO: Egyptian government sources have estimated that the country will produce 15.6 tons of gold during the current fiscal year.

The sources said the government is looking for new exploration and discovery opportunities in regions by increasing foreign mining investment in Egypt.

Centamin, which owns the Sukari mine, announced that profits from the mine increased by about 100 percent during the first quarter of 2020 to a record $49.2 million, compared with $24 million in the corresponding period last year. It said the increase was supported by high sales and gold prices.

Egypt received $42.5 million as a share of the profits during the January to March period of 2020, in addition to $6.7 million in royalties, compared to $20.5 million and $3.5 million last year, respectively.

The company said the mine produced 125,100 ounces during the first quarter of 2020, but expected production to decline to 115,000 ounces during the second quarter.

A government source said that General Authority for Mineral Resources revenues over the last fiscal year rose to 2.24 billion Egyptian pounds, adding that the authority oversaw huge improvements, especially after the Mineral Resources Law was issued.

The source said the authority aimed to achieve a 2.4 billion Egyptian pound revenue, but the coronavirus pandemic prevented the target being reached.

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