18th Jul 2024 15:34
(Alliance News) - Centamin PLC on Thursday said the Doropo gold project in Ivory Coast meets its investment criteria.
The gold miner, which operates the Sukari gold mine in Egypt, set out a definitive feasibility study for Doropo.
The DFS estimated probable mineral reserves of 1.88 million ounces of gold at an average grade of 1.53 grammes of gold per tonne of ore. This supports a 10-year life of mine, Centamin said, with an average annual gold production of 167,000 ounces.
All-in sustaining costs are estimated at USD1,047 per ounce over the life-of-mine. The spot gold price is around USD2,463.00 an ounce on Thursday afternoon, rising in recent days. It hit a record near USD2,484 on Wednesday.
Centamin will conduct an early works plan ahead of a financial investment decision.
Berenberg analysts commented: "The increased degree of confidence and scrutiny that comes with a DFS-level study from a pre-feasibility level study results in small conservative adjustments (eg to production volumes, all-in sustaining costs and capex) versus the PFS, but it is worth underscoring the attractive project parameters.
"The DFS also brings positive updates in the form of reduced resettlement needs (fewer than 500 people to be resettled, down from 2,000-3,000 people), as well as a redesign of the tailings storage facility, which cuts its footprint."
Berenberg believes Centamin could have enough in its coffers to fund Doropo with its cash flows, though it believes "management will progress project funding discussions".
"Doropo is a quality project and [is] likely to be Centamin's second mine, we think," the German bank added.
It rates Centamin at 'buy' with a 160 pence price target. Shares in the company fell 0.4% to 132.70p on Thursday afternoon.
By Eric Cunha, Alliance News news editor
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