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Business|Exploration|Gold|Mining|PROJECT|Underground
business|exploration|gold|mining|project|underground

Centamin says business outlook continues to improve

18th July 2019

By: Rebecca Campbell

Creamer Media Senior Deputy Editor

     

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Dual London- and Toronto Stock Exchange-listed gold miner Centamin, whose current main asset is the Sukari gold mine in Egypt, announced on Thursday that the amount of gold produced by the mine during the second quarter of this year (2Q19) was slightly (1%) higher than the production during the first quarter (1Q19), but was 27% higher that during the second quarter of last year (2Q18). In quantitative terms, 2Q19 production was 117 913 oz, as against 116 183 oz in 1Q19 and 92 803 oz in 2Q18.

Production for the first half of this year (1H19) was 8% up on that for the same period last year (1H18). In quantity, 1H19 output was 234 096 oz in comparison to the 217 098 oz of 1H18.

Regarding gold sales, in 2Q19 these were also just 1% higher than in 1Q19, but 16% higher than in 2Q18. In numbers, the mine sold 112 764 oz in 2Q19 (at an average realised price of $1 307/oz) as against 111 365 oz in 1Q19 (average realised price: $1 303/oz) and 97 628 oz in 2Q18 (average realised price: $1 298/oz). For 1H19, gold sales came to 224 129 oz at an average realised price of $1 305/oz, which was actually a 2% decrease over the 228 672 oz sold during 1H18 (at an average realised price of $1 361/oz).

“The outlook for the business continues to improve,” affirmed company CEO Andrew Pardy. “We remain focused on delivery against our promises and our corporate strategy.”

The company is maintaining its guidance for a total gold production for this year of from 490 000 oz to 520 000 oz, at a cash cost of from $675/oz to $725/oz of gold produced. The company is expecting its costs to decline as its production increases during the second half of this year.

“Stronger production in the second half will be driven by mining openpit grades above 1 g/t, as the Stage 4 pit progresses down into the Hapi zone,” he stated. “With continued improvement in the business, the company is growing its core technical competencies, through recruitment and ongoing development of its people.”

Sukari undertakes both openpit and underground mining. During 2Q19, the underground operation mined 310 000 t of ore while the openpit operation produced 3 615 000 t of ore.

In addition to organic exploration activities at Sukari, the company also has completely unrelated exploration activities in other African countries. The most advanced of these is the Doropo project in the Côte d’Ivoire, but there is also the ABC project in that same country and the Batie West project in Burkina Faso.

“We have a portfolio of attractive organic opportunities within Sukari and continue to deliver successful results from our Côte d’Ivoire exploration programmes,” he reported. “Our balance sheet is strong with no debt, no hedging and cash and liquid assets of $327-million. We are confident in our plans to maximise shareholder value and returns.”

Edited by Creamer Media Reporter

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