17th Oct 2024 10:00
(Alliance News) - Centamin PLC on Thursday reiterated its full-year production guidance, as third-quarter revenue surges nearly 85% higher following strong gold production volumes.
The operator of the Sukari gold mine in Egypt said it produced 131,726 ounces of gold in the third quarter ended September 30, increasing 30% from 101,370 ounces last year. Gold sales rose to 149,659 ounces, up 44% from 103,807 ounces.
Revenue in the third quarter surged 84% to USD368.6 million from USD200.4 million the year before, as the average real gold price grew 28% to USD2,459 per ounce from USD1,927 per ounce.
Centamin said its full-year guidance remains unchanged from the previously stated range of gold production between 470,000 and 500,000 ounces per annum. Production is currently tracking towards the mid-point of this guidance and is weighted towards the second half of the year, as previously guided.
It expects cash costs for the full year to be towards the upper end of its USD700 to USD850 per ounce guidance range. This is due to the cost of tonnes planned to be mined as waste being reclassified as ore, resulting in a lower strip ratio.
Total gold production for the nine months of the year to date was 356,465 ounces, 11% higher than 321,931 ounces last year.
Chief Executive Officer Martin Horgan said: "The performance at Sukari disclosed in our August trading update has been maintained through the remainder of the third quarter, building on the operational momentum from the second quarter of 2024. This strong performance follows our significant investment in operational improvements, which positioned us to capitalise on the current record gold price. The improved production and continued cost discipline resulted in USD103 million in free cash flow in the third quarter, 730% higher year-on-year. We expect the third-quarter gold production rate to be sustained for the rest of the year and reaffirm our 2024 production and cost guidance ranges.
"At the same time, we continue to advance organic growth opportunities within our portfolio. We are actively following up on the recent exploration successes from our Eastern Desert Exploration drilling programme, with the second phase of drilling nearing completion. We are also making good progress with our mining licence application for the Doropo project in Cote d'Ivoire, which we expect to be granted by the end of 2024, ahead of a final investment decision."
Shares in Centamin were up 1.6% at 159.80 pence each in London on Thursday morning.
By Emily Parsons, Alliance News reporter
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