Egypt-focused gold miner Centamin still expects to reach the lower end of its full-year production guidance, at 490 000 oz, despite having reported lower production for the third quarter.

The LSE- and TSX-listed company's Sukari mine, in Egypt, produced 98 045 oz of gold in the quarter ended September 30, a 17% decrease on the 117 913 oz produced in the second quarter of the year, as well as a 17% decrease on the 117 720 oz produced in the third quarter of 2018.

Year-to-date production was down by 1% year-on-year, at 332 141 oz.

"This quarter was one of continuing transition. Further key staff changes were made at Sukari as we continue to strive for increased performance in key areas of the operation.

"The operational leadership team have commenced a comprehensive review, supported by external consultants, across all sections of the mine, including mining methodology and infrastructure." CEO Andrew Pardey commented on Wednesday.

Centamin earned gross revenue of $160.8-million from the sale of 108 826 oz of gold, at an average price of $1 478/oz, in the third quarter.

As a result of the lower output, unit cash costs increased by 14% quarter-on-quarter and 39% year-on-year to $860/oz for the third quarter.

Year-to-date unit cash costs, at $742/oz, were 18% higher year-on-year.

All-in sustaining costs (AISC), meanwhile, were 13% higher quarter-on-quarter and 34% higher year-on-year, at $1 141/oz. The year-to-date AISC increased by 10% year-on-year to $1 006/oz.

Nevertheless, Pardey said the company had generated significant free cash flow.

"During the quarter, we distributed an interim dividend of $0.04 a share, taking total shareholder dividends to in excess of $500-million and we remain confident that we will generate significant cash flow and, thus, an attractive dividend at the full year," he added.

SOLAR PROJECT
During the quarter, Centamin also completed a preliminary study into the technical viability of building a solar plant at the Sukari mine.

"As expected, the results of the study demonstrated the potential of the project to materially reduce the consumption of fossil fuels and thereby reduce our environmental footprint and operating expenditure. The study indicated a minimum 30 MW solar plant would be the optimal capacity for an initial staged integration to the processing plant," the gold miner stated.

An engineering, procurement and cocnstruction management process is under way and a final feasibility study will be delivered to Centamin's board for approval during the fourth quarter.