On Thursday, Centamin PLC (CEY:LN) (OTC: CELTF) saw its price target increased by BMO Capital from GBP1.60 to GBP1.80, while the firm maintained an Outperform rating on the stock. The adjustment follows Centamin's release of its second-quarter operating results for 2024, which demonstrated sequential improvements in production and costs.
The first half of 2024 operating results for Centamin were generally in alignment with BMO's and consensus estimates. Despite a slight miss in EBITDA, attributed to the timing of sales, BMO Capital remains optimistic about the company's prospects in the second half of the year. The firm anticipates an uptick in free cash flow (FCF) following the completion of accelerated waste stripping at the Sukari mine.
In addition to the financial update, Centamin has declared an interim dividend of US¢2.25 per share. This announcement is seen as a sign of the company's financial health and its ability to return value to shareholders.
The mining company, which is known for its operations at the Sukari Gold Mine in Egypt, has been focusing on consistent operational performance. The completion of key operational processes is expected to contribute to stronger financial results in the upcoming quarters.
BMO's revised price target reflects confidence in Centamin's ability to maintain its operational momentum and capitalize on the groundwork laid in the first half of the year. The firm's Outperform rating indicates a belief that Centamin's stock will likely perform better than the market or its sector in the near future.
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