19th Jan 2021 09:17
(Alliance News) - Centamin PLC on Thursday reported gold production in line with guidance both for the final quarter of 2020, and for the year as a whole.
The Sukari mine in Egypt, which is the FTSE 250 gold miner's only producing asset, achieved output of 67,996 ounces for the three months to the end of December, a 54% drop from 148,387 ounces the same period the year before, due to lower grades, recoveries and a fall in the amount of ore mined.
Despite the decline, the quarterly output was in line with guidance that was set between 60,000 to 70,000 ounces.
Centamin generated revenue of USD150 million for the quarter down 26% year-on-year from USD204 million, as gold sales declined by 42% to 79,535 ounces from 137,065 ounces the prior year.
For 2020 as a whole, gold output dipped by 5.9% to 452,320 ounces from 480,528 ounces the year before, but was in line with the guidance range of 445,000 to 455,000 ounces.
Revenue for the year reached USD829 million, up 26% year-on-year from USD658.1 million. While gold sales dipped by 0.3% to 468,681 ounces from 470,020 ounces the year before, the average gold price jumped by 26% to USD1,766 per ounce from USD1,399.
Looking ahead, for 2021 Centamin expects gold production to be between 400,000 and 430,000 ounces, reflecting a 4.9% to 12% decline from 2020's figure.
Operationally, phase two of the Sukari Life of Asset is underway and will lead to an updated life of plan in the fourth quarter of 2021.
"Today's Q4 and subsequent full year 2020 results were delivered in-line with the revised guidance we issued in October. This follows the capital markets event we hosted in December, where we presented the conclusions of the Phase one Life of Asset review and three-year outlook, detailing clear cost-saving, exploration and productivity initiatives, forming part of our plans to unlock Sukari's potential," said Chief Executive Officer Martin Horgan.
Shares in Centamin were up 2.5% at 119.15 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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