Centamin Confirms Full-Year Guidance and Outlook for Sukari Gold Mine

Centamin, the gold mining company, has reaffirmed its full-year guidance on costs and revised its production target following lower-than-expected third-quarter production. However, the company remains optimistic about the long-term prospects for the Sukari gold mine in Egypt.

Production Outlook

Centamin expects the Sukari mine to produce an average of 506,000 ounces per year from 2024 to 2032. Additionally, it anticipates an annual average production of 475,000 ounces during the mine’s lifespan from 2024 to 2034.

Cost Reductions

The company aims to reduce the average all-in sustaining costs (AISC) for the Sukari mine to $922 per ounce of gold sold. This represents a significant reduction of 34% compared to 2022 and positions Sukari in the lower half of the global cost curve.

Reestablishing Sukari as a Tier-One Asset

Martin Horgan, the Chief Executive of Centamin, emphasized that the updated life-of-mine plan solidifies Sukari as a prominent global gold asset. He further highlighted the company’s commitment to maximizing free cash flow generation through these initiatives.

Third-Quarter Performance

Although Centamin reported lower-than-expected gold production of 101,370 ounces in the third quarter, it attributed this to pre-emptive repairs at the SAG1 mill at Sukari in September. The repairs were successfully completed and the mill resumed full operation on October 1st.

Full-Year Outlook

Despite the temporary setbacks in the third quarter, Centamin maintains its full-year production guidance. However, it now expects production to fall within the lower end of the previously projected range of 450,000 to 480,000 ounces. The company, however, remains confident in meeting its full-year cost and adjusted capital expenditure targets.

Centamin’s shares are currently trading at 84.70 pence, reflecting a 2.9% increase since market opening.