JOHANNESBURG (miningweekly.com) – Aim-listed Centamin's share price on the LSE fell by more than 15% on Friday after the miner lowered its production guidance for the full year to between 505 000 oz and 515 000 oz.
It had previously expected to produce 580 000 oz of gold for the full year, however, it said in a statement on Friday that low grades from the transitional zone in the openpit, combined with lower development grade from underground production at its flagship Sukari mine, in Egypt, persisted.
Total underground production has been 10% below forecast, to date, in the current quarter, resulting in a revised production cost of between $625/oz and $640/oz produced, and an all-in-sustaining cost of between $875/oz and $890/oz sold.
Production equipment availability at Centamin’s underground operations resulted in lower production ore tonnage mined and, subsequently, development tonnage mined has increased, resulting in a 50:50 split.
“The development grade has been lower than budget. Increased tonnes came from the accelerated development to access future stoping. Production equipment availability is now improving and ore tonnes from stoping will increase back to the previous 60:40 split, stoping to development tonnes,” the statement said.
In the openpit, total tonnage mined continued to be ahead of schedule.
As mining progresses through the low-grade transitional zone of stage 4A at the openpit, grades continued to be below budget. The additional oxide material has been short hauled to the new dump leach pad, prepared at the north of the Sukari Hill, and is scheduled for irrigation in the second quarter.
Meanwhile, the processing plant is performing in line with expectations. Metallurgical recoveries are also performing in line with expectations.
The company will publish preliminary production results for the quarter ending June 30 on July 9.
Centamin's LSE listed shares were trading at 135.15p on Friday morning, down 15.19% compared with Thursday's close of 159.35p.