7th Jan 2016 07:50
LONDON (Alliance News) - Centamin PLC on Thursday said production for 2016 from its Sukari gold mine in Egypt is forecast to be higher than levels seen in 2015.
In a statement, the gold miner said it expects 2016 production from Sukari to amount to 470,000 ounces at a cash operating cost of USD680 per ounce and all-in-sustaining cost of USD900 per ounce.
Centamin said that would equate to a 7.0% increase on 2015 production and a reduction on 2015 cost guidance of USD700 per ounce cash operating cost and USD950 per ounce all-in-sustaining cost.
Gold production during the fourth quarter of 2015 was 117,644 ounces, a 12% increase on the previous quarter and an 8.0% decrease on the corresponding quarter the prior year, Centamin said. That brought full-year production to 439,072 ounces, a 16% increase on 2014 and within guidance of between 430,000 and 440,000 ounces for 2015.
Chief Executive Andrew Pardey praised the Sukari operation for reaching its targeted production rate during the fourth quarter.
"This significant milestone provides a solid platform for additional productivity increases as the various areas of the expanded Sukari operation continue to be optimised. Full-year production is towards the top end of the revised guidance range for 2015 and we look forward to delivering a seventh successive year of growth in 2016," he said.
However, Pardey said the strong operating performance was "overshadowed" by a fatality within the open pit during the fourth quarter. Centamin said a full review of the relevant operating procedures was completed in the wake of the tragedy, following which open-pit mining rates have increased towards target levels.
"During the quarter an unfortunate incident occurred within the open pit operation, when a contractor's employee was involved in a rock collapse whilst relocating a grade control drill rig. The operator, and sole occupant of the drill rig, was fatally injured in the incident," Centamin said.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Centamin PLC