Egypt-focused gold miner Centamin is confident it will continue to deliver strong shareholder returns, following a solid performance in the 2019 financial year.

Gold production at its flagship Sukari mine increased by 2% year-on-year to 480 529 oz.

The miner generated gross revenue of $658.1-million from the sale of 470 020 oz of gold at an average realised price of $1 399/oz. This compares with the 484 322 oz of gold sold at an average realised price of $1 267/oz in 2018.

Full-year costs of $699/oz were in line with guidance, while all-in sustaining costs (AISC) for the full year were $943/oz.

Centamin reported a strong balance sheet with no debt, no hedging and cash and liquid assets of $348.9-million as at December 31.

"Centamin has undertaken a number of initiatives in 2019 to improve the consistency at, and increase cash flow from, the Sukari mine, which have contributed to a strong fourth-quarter performance. Consistent operational delivery against the mine plan remains the key objective. The leadership teams have been strengthened and I am confident in our ability not just to deliver in the near term but also to enhance the long-term value at Sukari, and the rest of the portfolio," interim CEO Ross Jerrard said in a statement published on Thursday.

The gold miner expects Sukari to produce between 510 000 oz and 540 000 oz this year, with 60% of output weighted to the second half of the year.

Openpit material is expected to contribute 75% of the full-year production, with the underground mine to contribute the balance.

Cash costs are estimated to be at between $630/oz and $680/oz, while AISC is expected to be between $870/oz and $920/oz.

Centamin will invest about $190-million in capital expenditure (capex) in Egypt this year, with sustaining capex estimated to reach about $95-million and nonsustaining capex about $45-million. The nonsustaining capex will include the investment of $23-million in a new tailings storage facility (TSF) at Sukari.

The existing TSF at Sukari will reach capacity in the medium term. To extend tailings deposition to beyond 2030, Centamin is investing in a new TSF, on which construction will start this year.

A further $50-million will be invested in long-term growth projects, including solar power.

Centamin plans to build a $37-million solar hybrid power plant to reduce Sukari's carbon footprint. Construction on the plant is expected to start in the second quarter of this year.

Additionally, the miner expects to incur about $20-million in exploration costs at its projects in Côte d'Ivoire and Burkina Faso.