05:48 AM EDT, 07/09/2018 (MT Newswires) -- Centamin (CEY.L, CEE.T), a gold miner, said early Monday that preliminary data show second-quarter production at its principal mine slumped by 25%, in line with its forecast in May of a drop in output, but it maintained its full-year guidance.

Production sank to 92,803 ounces during the three months that ended June 30, from 124,641 ounces a year ago, the company, a low-cost producer with operations mainly focused in Egypt, said in a statement. Gold output over the six-month period also fell by 7%.

Second-quarter interim results are expected to be released on Aug. 2, the company said.

Noting the "lower open pit grades as mining progressed through the transitional zone and below-forecast underground grades," the company said that the "stope grades were impacted by greater-than-scheduled dilution from low-grade porphyry material".

Centamin, however, noted that "materially stronger" production is expected for the second half, driven by continued improvements in grade from the open pit as mining progresses into the sulphide ore and an increase in high grade stoping tonnes from the underground.

As a result, the full-year 2018 revised outlook of the Egyptian Sukari mine, which began production in 2009, has been maintained at 505,000-515,000 ounces.

"Stope tonnage [has] continued to improve and there haven't been any further disruptions to the long hole drill rig availability and utilization," the statement added.

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