Centamin on track to meet full-year guidance, posts solid second-quarter output

22nd July 2021 By: Simone Liedtke - Writer

Gold producer Centamin is set to maintain its full-year gold production and cost guidance of between 400 000 oz and 430 000 oz at cash costs of between $800/oz and $900/oz on the back of another solid operational performance for the second quarter ended June 30.

All-in sustaining cost (AISC) for the full-year is expected to remain at between $1 150/oz and $1 250/oz sold.

Gold production for the second quarter was 100 228 oz, bringing production for the first half of the year to 204 275 oz.

Revenue generated was $177.5-million from gold sales of 97 229 oz at an average realised gold price of $1 822/oz.

Cash costs for the quarter were $883/oz, while AISC was $1 290/oz.

The openpit operational performance delivered ahead of schedule, resulting in record quarterly total material moved of 25.6-million tonnes.

The miner’s better-than-budgeted group free cash flow of $6.9-million reflected a stronger gold price and lower capital expenditure (capex) and was offset by an accelerated open waste-stripping programme and increased exploration activities.

CEO Martin Horgan on July 22 attributed the good second-quarter performance in part to the miner’s “excellent progress” with the Sukari waste-stripping programme, which has “significantly outperformed budget and resulted in record material mined”.

Centamin’s capex guidance continues to be maintained at $225-million, with 65% of the budget to be spent in the second half of the year owing to timing adjustments to the payment schedule.

The miner’s 2021 exploration expenditure increased to $17-million, up from $5-million previously, including progressing to prefeasibility study (PFS) at Doropo, following a positive strategic review of the company’s West Africa portfolio.

The PFS is scheduled for completion in the second half of 2022.

Additionally, the recently agreed exploration licence terms for a 3 164 km2 land package in Egypt’s Arabian Nubian Shield is subject to final legal formalities, which are expected to be completed in the third quarter of the year.

The Phase 2 Sukari life of asset optimisation work programme is scheduled for completion during the fourth quarter.

“This is testament to our team at Sukari delivering improvements in operating efficiencies and further supported by the quick mobilisation and ramp-up of the waste-stripping contractor,” Horgan enthused.