EGYPTIAN gold miner Centamin has targeted gold production of between 470,000 to 500,000 ounces for the 2024 financial year which it hoped to mine at an all-in sustaining cost of gold sold of $1,140 to $1,220/oz sold
This cost forecast compares to AISC of $1,266/oz in the third quarter. Centamin said it was targeting the lower half of its AISC this year of between $1,250 to $1,400/oz. The company mines the Sukari gold mine which is its only asset.
Third quarter gold production totalled 101,370 oz as stated on October 12 bringing production for the nine months to 321,931 oz. The company was “on track” to produce in the lower end of the 2023 guidance range of 450,000 to 480,000 oz. Production was negatively affected after taking pre-emptive measures to repair one of its SAG mills.
Capital expenditure guidance is maintained at $273m while exploration spend will be “results driven”. Of $30m in 2023 exploration spend some $23m has been allocated to pre-development study work on the Doropo Gold project in Côte d’Ivoire.
“Today’s results reflect another period of disciplined cost management, putting us on target for the lower half of our 2023 cost guidance range,” said Martin Horgan, CEO of Centamin. “Our financial strength and the savings made against our 2023 budget have also given us the flexibility to accelerate some key 2024 capital expenditures into 2023 without impacting guidance,” he added.
Centamin published a new mine plan for its Sukari mine in which production would average 506,000 ounces a year for the next nine years and contribute to a 5% increase in total gold production over the mine’s 11 year life.
The UK-listed firm also said the new mine plan would result less dilution, improved recoveries and a consequent reduction in costs. There was an additional $41m in annual cost saving as Centamin had agreed to procure power from Egypt’s national grid.
