CENTAMIN generated $103m in third quarter free cash flow, an increase year-on-year of 730%, and kept gold production guidance unchanged at 470,000 to 500,000 ounces for the year ended December.
“This strong performance follows our significant investment in operational improvements which positioned us to capitalise on the current record gold price,” said Martin Horgan, CEO of Centamin which mines the Sukari mine in Egypt.
Gold production for the quarter totalled 131,726 oz, 30% higher year-on-year while gold sales were 44% higher at some 149,659 oz. Total gold production for the nine months is 356,465 oz, the company said. All-in sustaining costs of $1,256/oz were largely unchanged on a quarter and year-on-year basis.
As of end-September, the company had cash and liquid assets of $242m.
Centamin is subject to a $2.5bn share and cash takeover launched by AngloGold Ashanti on September 10. If concluded, the acquisition of Centamin will boost AngloGold’s production to nearly 3.1 million ounces annually making it the world’s fourth largest gold producer.
Sukari also helps lower AngloGold’s AISC. The mine averaged $1,196/oz for the 12 months ended December compared to AngloGold’s $1,500 to $1,600/oz guidance.
On October 15, Egypt’s competition authorities approved the transaction. There are still conditions precedent before the deal is consummated including the sanction of the Scheme by the Jersey Court, AngloGold Ashanti said.
The deal is one of the latest in mining sector merger and acquisitions and follows rival Newmont’s $14.5bn takeover of Newcrest last year and Gold Fields’s C$2.16bn pitch for Canada’s Osisko Mining.
The total value of mining sector deals across all metals year-on-year increased 3% to $64bn in 2023, according to a report by PwC, an auditing firm.
