Gold miner Centamin earned gross revenue of $222.2-million, generated from the sale of 139 784 oz of gold at an average realised price of $1 587/oz, in the first quarter of this year.

With no debt or hedging, Centamin has cash and liquid assets of $379.2-million, as at March 31, an increase of $30-million since December 31, 2019.

A 2020 first interim dividend of $0.6c apiece has been declared, with a payment date of May 15.

Cash costs for the first quarter reached $659/oz and all-in sustaining costs (AISC) $902/oz, both of which are in line with yearly guidance.

Gold production from its principal Egypt-based asset – the Sukari gold mine – was 125 090 oz for the first quarter, in line with yearly guidance.

The miner aims to maintain its 2020 full-year guidance, targeting production between 510 000 oz and 540 000 oz of gold, with production weighted to 55% in the second half of the year.

This is based on cash costs between $630/oz and $680/oz and AISC of between $870/oz and $920/oz.

Openpit material is set to contribute 80% of the full-year production, driven by higher-grade Stage 4 ore. The balance is scheduled to come from underground.

The second quarter of the year is scheduled to be a lower production quarter, producing about 115 000 oz of gold, reflecting a reduction in underground output.

Meanwhile, Centamin has appointed a new CEO Martin Horgan with effect from April 6 with Ross Jerrard continuing as CFO.

In terms of the miner’s response to Covid-19, it took early action to protect the health, safety and wellbeing of its employees and communities, resulting in no recorded cases of Covid-19 on site.

Centamin also reports no material disruptions to its operations, supply chain or gold shipments, with contingency plans in place to deal with various possible disruptions.

Although the miner says the impact and potential duration of the Covid-19 pandemic remains uncertain, it nonetheless has undertaken risk analysis scenarios and has put in place contingency plans for the business.

It is closely monitoring the situation, with an active response framework in place to manage and mitigate future impacts within its control.

The Sukari gold mine’s operations have been uninterrupted, with sufficient staffing resources and critical supplies for the second quarter of the year, during which it is expected global travel restrictions may begin to ease.

However, the miner notes that, should such restrictions be extended into the second half of the year, it is possible that operations may be affected.

As a precautionary move to protect the health and wellbeing of the workforce, non-essential capital expenditure (capex) has been temporarily deferred, including the Sukari solar plant.

This was done to reduce the number of contractors and other non-operating traffic on and off site, while restrictions related to Covid-19 remain in place.

As a result, 2020 capex is expected to be in the range of $150-million to $170-million, down from $190-million previously.

Further, the Sukari life-of-asset review is ongoing. A series of independent enhancement studies across each section of the mine is underway, with results expected throughout 2020, identifying areas of improvement.

Jerrard says the first quarter was a strong start to the year, with operational and financial performance delivered ahead of plan.

“The commitment and response by our workforce to the Covid-19 pandemic has been exceptional, and we would also like to acknowledge the assistance and support of the Egyptian government.”