JOHANNESBURG (miningweekly.com) – Gold miner Centamin’s first-quarter results have provided a “solid” foundation to build upon throughout this year, says CEO Andrew Pardey.

The gold miner on Thursday reported a 171% year-on-year improvement in basic earnings a share to $0.03.

Revenues of $172.5-million were 23% higher year-on-year, owing to a 14% increase in gold sales and a 9% rise in average realised gold prices, which resulted in a 71% year-on-year increase in the company’s earnings before interest, taxes, depreciation and amortisation to $91-million.

Centamin, which operates the Sukari mine, in Egypt, processed 3.07-million tonnes of ore in the quarter ended March 31 – a 5% year-on-year increase. Gold production rose by 14% year-on-year to 124 296 oz.

The company maintains its full-year production guidance of 580 000 oz at a forecast cash cost of production of $555/oz and all-in sustaining costs of $770/oz.

Centamin has re-optimised the Sukari mine plan for the remainder of this year, adjusting for the lower-than-expected grade in the transitional zone from the openpit. This is expected to result in a stronger production profile for the second half of the year.

“Despite the lower-than-expected grades mined from the openpit impacting on production, improved productivity, higher recoveries, stringent cost control and a strengthening gold price all were marked contributions to the quarterly performance,” said Pardey.

To support the updated mine plan, total openpit material scheduled to be mined in the current financial year has increased to 75-million tonnes.

The openpit mining activities are focused on Stage 4A of the north wall – the predominant source of ore for the next five years. The updated openpit mine plan is aimed at getting through the lower-grade transitional ore and into the higher-grade primary ore by the third quarter of this year.

Meanwhile, 1.3-million tonnes of underground ore is scheduled to be mined from Sukari’s Amun/Ptah zone at a higher grade of 7.7 g/t, comprising an overall 65:35 split between stoping and development ore.

The TSX- and LSE-listed company expects increased decline infrastructure development at Sukari’s Cleopatra zone from the second quarter and a second dump leach pad has been prepared.

The Cleopatra exploration development of 191 m during the first quarter produced 18 902 t of mineralised development ore at an average grade of 2.59 g/t.

Moreover, Sukari’s high-grade underground exploration results continue to support the company’s belief in resource expansion and ongoing reserve replacement. The Keel zone, below Cleopatra and within the main porphyry, continued to return good results; including 50.4 m at 5.3 g/t, including 4 m at 22.7 g/t.