JOHANNESBURG (miningweekly.com) – Production at dual-listed Centamin’s Eqypt-based Sukari gold mine increased by 39% year-on-year to a record 93 624 oz for the three months ended June 30, as the processing plant continues to see improvements in productivity and availability.
The higher output, which was an 8% improvement on that of the first quarter of the year, came on the back of a 4% quarter-on-quarter increase in openpit material movement to 11.02-million tonnes.
Quarterly throughput at the Sukari process plant was a record 1.42-million tonnes, a 12% increase on the prior year period and a 1% increase on that of the first quarter.
As a result, the plant exceeded its nameplate annualised rate of five-million tonnes for the second successive quarter.
Similarly, openpit ore production increased by 39% quarter-on-quarter to 2.96-million tonnes, which led to an increase in the run-of-mine ore stockpile balance from 432 000 t to 1.19-million tonnes at the end of the period.
In addition, the underground mine delivered 142 000 t, up 19% on the first quarter.
Commenting on Centamin’s second-quarter performance, boutique investment bank Liberum Capital said the gold miner had done “exceptionally well” and had demonstrated that the political issues in the country were not currently affecting operations.
“The 19% improvement in underground ore production suggests that the equipment issues faced at the start of the year are alleviating, even before the new boggers are due to arrive this month, while openpit mining continues to benefit from new face shovels,” said the bank.
Formal guidance for the current year remained at 320 000 oz of gold at a cash operating cost of $700/oz, despite the mine’s output currently being 13% higher than this on an annualised basis.
“While management seems keen to impress, they’re not changing the guidance yet, as we are likely to see some downtime as Stage 4 is commissioned in the fourth quarter. Still, we think there is conservatism built into that guidance and they could surprise on the upside by between 5% and 10%, all going well with commissioning,” Liberum noted.