TSX- and LSE-listed gold miner Centamin on Monday reported earnings before interest, taxes, depreciation and amortisation of $257-million for the year ended December 31, 2018.

This is a 17% year-on-year decrease, as a result of lower production and higher operating costs, translating to basic earnings a share of $0.065 – a 22% year-on-year decrease.

The company’s flagship Sukari mine, in Egypt, delivered 472 418 oz of gold, which was 13% lower year-on-year.

Centamin has set its guidance at between 490 000 oz and 520 000 oz of gold for this year, with increased stripping in the openpit balanced by estimated higher average grades. The average grade for the reporting period was 0.76 g/t gold.

“We are actively working through the outstanding factors impacting on underground dilution at Sukari. These actions include the installation of a Cemented Hydra Fill plant, which will be used to stabilise the stoping voids and reduce the impact of dilution through cascading.

 “In 2018, we were able to contain our cost pressures on an absolute basis; however, in 2019, we forecast an 11% increase in cash costs per ounce and a 5% increase in all-in sustaining costs per ounce. 

“This is largely driven by increasing input costs, owing to the increased volumes in both mining and processing, as well as rising fuel, reagent and consumable prices,” chairperson Josef El-Raghy highlighted in a statement on Monday.

He added the company was in the final stages of a detailed design and feasibility study for a solar farm that could ultimately produce 40 MW. Once installed, this will deliver significant cost saving and environmental benefits, reducing the company’s reliance on fossil fuels.

 “This year, we grew our global resource by 5% to 15.7-million ounces, predominantly driven by increased contribution from our Côte d'Ivoire assets.

“Sukari underground reserves were replaced in excess of mining depletion, delivering on our primary underground exploration objective. We remain confident in delivering further group reserve and resource growth, supported by consistent investment into exploration, potentially shaping future development prospects outside of Egypt, as well as defining additional sources of high-grade tonnes at Sukari,” El-Raghy stated.

Additionally, the company had always considered opportunities to increase its landholding within the underexplored Arabian Nubian Shield, leveraging off of the company’s established in-country foundation, workforce, resources and technical expertise.

Meanwhile, during 2018 Centamin made payments to host governments in the form of taxes, bonuses, royalties, licence or permit fees and for infrastructure improvements; including $98-million to Egypt, $895 018 to Burkina Faso and $21 566 to Côte d'Ivoire.

The board recommended a final dividend of $0.03 apiece, bringing the total dividend for 2018 to $0.055, which is equivalent to 100% of free cash flow generated, at $63.4-million.