Egypt-focused Centamin’s Sukari mine produced 92 803 oz of gold in the second quarter of this year, a 25% year-on-year decrease, as a result of lower openpit grades, as mining progresses through the transitional zone, and below forecast underground grades.

Gold production for the six months ended June 30 was 217 099 oz, a 7% year-on-year decrease.

Despite the lower production, Centamin maintains its revised full year production guidance of between 505 000 oz and 515 000 oz.

Materially stronger production is expected for the second half of this year, which the miner says will be driven by continued improvements in grade from the openpit as mining progresses into the sulphide ore and an increase in high-grade stoping tonnes from underground.

In line with the revised mine plan in the second quarter, openpit mining operational parameters included a total material movement of about 18.4-million tonnes, a 5% year-on-year increase.

Openpit ore mined was 5.5-million tonnes, an 81% year-on-year increase, at an average mined grade of 0.51 g/t, a 33% year-on-year decrease. These results, the company noted, reflect the mining of Stage 4A lower grade transitional zone.

Openpit average milled grade was 0.59 g/t, a 27% year-on-year decrease, while 3.6-million tonnes at 0.42 g/t was delivered to the dump leach pads.

The dump leach produced about 2 028 oz in the second quarter, representing a 74% increase year-on-year.

Meanwhile, underground grade underperformed in line with the mine plan in the second quarter.

Stope grades were impacted on by greater than scheduled dilution from low-grade porphyry material in the open stopes, while development grades were lower as development was focused on access drives to future mining areas.

Stope tonnage, however, continued to improve and the company noted that there have been no further disruptions to the long hole drill rig (LHDR) availability and use.

Total underground ore delivered was 289 000 t, a 2% increase year-on-year, at an average mined grade of 4.62 g/t, about 1 g/t below revised forecast and a 47% decrease year-on-year.

Ore mined from stoping was 180 000 t at 4.61 g/t, while the ore mined from development was 109 000 t at 4.64 g/t.

The stope to development ore split returned to an optimal 60:40 split, Centamin said, while core underground equipment availability and use have improved.

As a mitigating measure, a reserve LHDR is due to arrive on site in the fourth quarter.

Meanwhile, Centamin’s Cleopatra exploration and development has ramped up during the second quarter, following the mobilisation of the second crew and equipment in late April.

A total of 7 169 m were completed in exploration drilling, while 540 m were developed, which delivered 47 692 mined tonnes, at an average development grade of 1.77 g/t.

Exploration assay results received within the second quarter will be included with the detailed interim results to be published on August 2.

Meanwhile, the plant performed in line with forecasts, despite lower feed grade, as a result of lower underground grade.

Total ore processed through the plant was 3.17-million tonnes, a 4% increase year-on-year, while metallurgical plant recoveries for the quarter were 87.3%, a 1% increase year-on-year.

“We have experienced several challenges this year, resulting in the revision of our full-year guidance in May. I am pleased to report progress throughout June in the openpit, where mining has begun to access improved grades as we are currently mining through the lower areas of the transitional zone and into the sulphide ore, which will be mined in the third quarter and onwards for the next four years,” CEO Andrew Pardey commented on Monday.

He added that the focus now remains firmly on delivering the underground operations back in line with forecasts and returning Sukari's production profile to a steady state.

The company’s share price on the LSE fell by nearly 8% on Monday morning.