9th Jan 2017 07:47
LONDON (Alliance News) - Gold miner Centamin PLC on Monday said production from the Sukari mine in Egypt rose year-on-year in the fourth quarter of 2016 but declined against the prior quarter, though output outdid the company's prior guidance for the full year.
Production from Sukari in the quarter to the end of December was 136,787 ounces, up 16% from the fourth quarter of 2015 but down 8.0% on the third quarter of 2016.
For the full year, gold production from Sukari rose 25% to 551,036 ounces of gold, ahead of Centamin's guidance for 520,000 to 540,000 ounces for the full year. The firm expects to produce 540,000 ounces of gold from Sukari in 2017 at an all-in cost of USD790 per ounce.
Centamin said the open pit at the Sukari mine is scheduled for work on developing a low-grade east wall cutback, meaning production in the first quarter of 2017 will be lower than in the fourth quarter of 2016.
Centamin added it expects to propose a final dividend for 2016 at its results, due on February 1, which will exceed the maximum amount provided for by its current dividend policy, thanks to the strong production performance and cash flow from Sukari.
As a result, the group has amended its dividend policy to allow the higher payout.
"We remain committed to our disciplined approach to capital allocation, as well as the potential for exploration to deliver significant shareholder value over the long-term. Results from our programmes in Burkina Faso and Ivory Coast continue to build momentum and warrant further investment, and we again exit the year with a robust financial and operating base on which to continue delivering our growth strategy," said Andrew Pardy, Centamin's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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