HAVING earned payback on its Egyptian gold mine, Sukari, which is now paying shareholders handsome dividends, the focus at Pardey’s Centamin is increasingly falling on new sources of gold production – either for expansion or resource replacement. Pardey teased investors early in February 2017 with comments regarding “very exciting” drill results from the firm’s Ivory Coast exploration. Further details of this – and exploration work in Burkina Faso – are due imminently. In the meantime, Centamin is continuing to open up development of Sukari through its Cleopatra decline, as well as releasing certain bottlenecks. A fourth secondary crusher is being added that will take the mine’s processing capacity above the current 12m tonnes/year rate. For all the exploration work in West Africa – it dedicates $25m to $40m every year to finding new gold – not a cent is yet going into further Egyptian exploration while prohibitive state participation rules apply. There’s talk the Egyptians may develop a Free Economic Zone involving its so-called “Golden Triangle” region, but it’s unknown whether different rules will be adopted. Centamin has no debt, generates huge cash – most of which it pays out – and has an “explore to develop” growth strategy. So, there’s not much to dislike. One blow, however, was the decision of executive chairman, Josef El-Raghy, to resign from the board after more than 20 years of association.
LIFE OF ANDREW
Born in Sydney, Pardey was chief geologist at Sons of Gwalia before being drafted in to run AngloGold Ashanti’s Siguiri mine in Guinea. He was COO of Centamin from 2012 to 2015, when he was appointed CEO. He is married with four children and enjoys surfing and watching rugby.
- Web Address: www.centamin.com