Centamin annual gold production meets guidance; revenue rises

Centamin (LSE: CEY; TSX: CEE) showcased a robust performance in 2023, achieving a gold production of 450,058 oz. and successfully meeting its annual guidance for the third consecutive year.

For the current year, Centamin has outlined a production forecast ranging between 470,000 oz. and 500,000 oz. This outlook is driven by ongoing enhancements in output at its flagship Sukari mine in Egypt, capitalizing on a favourable gold price environment.

In the fourth quarter of the year, Centamin reported a production of 128,127 oz., marking a 17% increase from 109,564 oz. in the corresponding quarter of 2022.

The company achieved a quarterly revenue of $265 million, derived from the sale of 133,465 oz. of gold at an average realized gold price of $1,983 per ounce sold. This represents a 41% surge compared to $188 million in the same period the previous year.

For the entire year of 2023, Centamin recorded a revenue of $892 million, stemming from the sale of 456,625 ounces of gold at an average realized gold price of $1,948 per ounce sold. This reflects a 13% rise from $787 million in 2022.

Centamin, which spent some $750 million over the past four years to improve efficiency at Sukari, Egypt’s only modern gold mine, plans to connect to the country’s electrical grid and company solar panels this year, alone cutting $41 million a year in diesel costs.

It wants to expand Sukari with nearby discoveries. It is exploring 3,000 km² in the eastern desert area near the mine. It’s budgeting 15,000 metres of reverse circulation drilling for the new area, metallurgical testing, a conceptual resource estimate and an optimization study to steer drilling.

It posted first results Jan. 9 showing 46 metres grading 3.3 g/t gold from 91 metres down drill hole LSRC030 and 77 metres at 1.84 g/t from 44 metres depth in drill hole LSRC012 at the Little Sukari prospect 28 km west of the Sukari mine.

At the Umm Majal prospect 23 km west of the mine, drill hole UMRC006 cut 18 metres grading 2.33 g/t from 21 metres depth and drill hole UMRC003 returned 15 metres at 1.46 g/t from 4 metres down.

Sukari, with a projected mine life to 2035, holds 194 million proven and probable tonnes grading 1.23 g/t gold for 7.7 million oz. of contained gold, the company said last month. The mine also holds 392 million measured and indicated tonnes at 1.06 g/t for 13.4 million oz. of contained gold.

Shares in Centamin experienced a 4.5% increase in Toronto on Thursday morning. The company currently holds a market capitalization of $1.34 billion.

THIS ARTICLE WAS ORIGINALLY POSTED ON MINING.COM