21st Oct 2020 10:10
(Alliance News) - Centamin PLC on Wednesday reaffirmed its 2020 guidance but expects a drop in production in 2021.
Shares in the FTSE 250-listed gold miner were down 22% in London on Wednesday morning at 127.55 pence each.
In the three months to September 30, Centamin's total material mined from its open pit fell 13% quarter-on-quarter to 17.7 million tonnes from 20.3 million tonnes. Ore mined fell 8% to 3.8 million tonnes from 4.1 million tonnes.
Ore grade mined from its open pit, however, improved 3% to 1.01 grammes per tonne gold from 0.98 grammes per tonne.
Gold production fell 2% quarter-on-quarter to 128,240 ounces from 130,994 ounces. Gold recovery dipped 1% to 87.4% from 88.0%. Year-on-year, third quarter output surged 31%, however.
Gold sold in the quarter dropped 9% to 118,617 ounces from 130,745 ounces, with an average gold price of USD1,933 per ounce, up 12% from the previous quarter.
All-in sustaining costs during the quarter rose 7% to USD961 per ounce from USD896 per ounce in the second quarter.
"The third quarter marked another solid performance, bringing 2020 year to date free cash flow generated to USD137 million, with a strong balance sheet of USD345 million in net cash and liquid assets," Chief Executive Martin Horgan said.
He continued: "Following our operational update on October 2, today we have refined our 2020 guidance to 445,000 ounces to 455,000 ounces of gold produced. Reflecting the continued work required to improve operational flexibility in the open pit, 2021 production is forecast at 400,000 ounces to 430,000 ounces. We have already commenced an increased waste stripping programme to improve optionality in the open pit, the benefits of which are expected to start to flow through in 2022."
In the year-to-date to September 30, Centamin's gold produced is up 16% year-on-year to 384,324 ounces from 332,141 ounces. Gold sold rose 17% to 389,146 ounces from 332,955 ounces.
For the fourth quarter, Centamin is guiding for production of 60,000 ounces to 70,000 ounces at an estimated cash cost of USD950 per ounce to USD1,050 per ounce. Fourth quarter all-in sustaining costs are guided between USD1,450 per ounce and USD1,650 per ounce.
By Paul McGowan; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Centamin PLC