CENTAMIN said it was on track to produce between 430,000 to 460,000 ounces of gold for its 2022 financial year after a strong quarter in which output totalled 110,788 oz.
This represented an 11% increase year-on-year and a 19% lift compared to its first quarter. Half year production stood at 203,897 oz.
“Q2 2022 was the first full quarter of underground owner operations at Sukari following the transition from contractor operations during Q1 2022 and the Sukari team delivered significant improvements in both productivity and costs,” said Martin Horgan, CEO of Centamin in a statement on Wednesday.
Centamin booked revenue of of $207.2m after selling 111,027 oz at an average realised gold price of $1,863/oz sold. However, inflation was a factor for the company during the quarter as per the sector in general.
Centamin said it would “monitor consumables pricing and review opportunities to offset price increases with cost savings” including its solar power plant, due for commissioning in the third quarter. Despite this, Centamin said it expected all-in sustaining costs to come in at the high end of its guidance, set at $1,275 to $1,425/oz.
From a balance sheet perspective, cash and liquid assets came in at $176.4m as of end-June. The results of a capital structure review undertaken by Centamin is due in the third quarter, it said.
Centamin mines the Sukari gold mine in Egypt, an asset which has tended to underperform in the past. A major part of the firm’s strategy under Horgan, however, is to invest in projects as a way of diversifying its revenue base.
In March, Horgan said Centamin hoped to have the results of a feasibility study of Doporo, a greenfields prospect in Côte d’Ivoire ready before year-end. “The market is not factoring in Doporo,” he said of the firm’s vaulation. “There is real potential for the mine to add to the company’s net asset value,” he added.