Centamin Announces Increase in Gold Production from Sukari Mine to Half a Million Ounces

Centamin, the global leader in mining and gold exploration in the Sukari mine and the Eastern Desert, has announced its target to produce between 470,000 and 500,000 ounces in 2024, representing an increase in annual production compared to 2023 when it reached a production volume of 450,000 ounces by the year’s end. Additionally, the company reported revenues of $892 million by the end of the previous year, with the fourth quarter alone contributing $265 million in revenue

Cash and liquid assets amounted to $153 million by the end of 2023, with total liquidity reaching $303 million, including the withdrawable credit ceiling related to sustainability, which amounts to $150 million

Martin Horgan, CEO of Centamin, stated, “Centamin achieved exceptional performance in 2023 by all measures. Key highlights of this performance include improvements in occupational safety rates across our various mining sites, achieving production targets for the third consecutive year, and surpassing drilling and production cost targets for 2023. We look forward to increasing our annual gold production in 2024 while achieving better operational cost management rates in the new year. Centamin holds a strong position and strategic expertise, allowing us to benefit from the current record-high global gold prices.”

Horgan further added that Centamin is currently finalizing a capital reinvestment program and connecting the Sukari mine to Egypt’s national electricity grid

Simultaneously, the company continues to focus on growth and converting available resources into confirmed reserves, especially after recent discoveries in the Sukari Small deposit in the Nagrs region as part of new exploration agreements. Centamin is also on the verge of making an investment decision in the Doropo mine on the Ivory Coast

Horgan commented, “Centamin achieved outstanding results on all levels, with gold sales reaching 456,625 ounces throughout the year at an average price of $1,948 per ounce. The annual cash costs for 2023 ranged from approximately $840 to $990 per ounce, while the cash costs in the fourth quarter reached $984 per ounce, produced at an average annual cost of $895 per ounce in 2023. The total cost per ounce for 2023 was $1,220, which is $30 less than the planned cost per ounce. The total annual capital expenditure reached $202 million, which is less than the targeted amount of $272 million.”

Horgan also noted that capital expenditure during the last quarter of the year was affected by diesel price savings, unrecorded operating costs as expected, and the postponement of the payment for the energy network project to the first quarter of 2024. Changes in equipment amortization strategies were also implemented. The company has also completed a new Sukari mine life plan, which provides increased gold production with lower operating costs and significantly reduces operational risks and carbon dioxide emissions

He added, “Safety of our employees at various exploration sites is our top priority. The company achieved 9.5 million hours of work at the Sukari Gold Mine without accidents, and there were no incidents leading to work stoppages in the fourth quarter of the year across the company’s assets. The recordable injury rate for the fourth quarter was 0.97 per million hours worked, representing a 67% improvement compared to the fourth quarter of 2022.”

Regarding the group’s proven, probable, and possible reserves and resources, they increased at the end of 2023 to 3.5 million ounces from 3.0 million ounces in 2020, surpassing the previously announced target. This growth was achieved through an increase in Sukari mine reserves by approximately 1.6 million ounces and the declaration of new reserves in the Doropo mine on the Ivory Coast, totaling approximately 1.9 million ounces

Regarding the processing operation, 3.2 million tons of ore were processed in the fourth quarter (for the fiscal year: 12.0 million tons), representing a 5% increase compared to the previous year. The gold ore concentration rate was 1.35 g/t Au (for the fiscal year: 1.27 g/t Au), marking a 10% increase over the previous year due to an increase in underground ore extraction during the quarter with higher grades. The gold recovery rate at the plant for the fourth quarter reached 89.1% (for the fiscal year: 88.7%), surpassing the targeted figures, thanks to high grades and the use of new chemicals, as well as improved ore crushing control. The final inventory balance reached 21.0 million tons at a grade of 0.47 g/t Au

Horgan expressed his gratitude to all Centamin employees for their continuous hard work and commitment to achieving these exceptional results, which led to these remarkable achievements throughout the year.