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Centamin plc (LSE:CEY), listed on the LSE as CEY and TSX as CEE, has released its production and financial highlights for Q3 to date (QTD) from its flagship Sukari Gold Mine in Egypt.
Q3 Production and Cost Performance
Centamin’s Sukari Gold Mine achieved gold production of 93,278 ounces (oz) in Q3 QTD, alongside gold sales of 102,563 oz. Cash costs for the quarter stood at US$715 per ounce produced, while the all-in sustaining costs (AISC) were US$1,290 per ounce sold, reflecting Centamin's commitment to cost discipline.
The Company also made significant capital expenditures (capex) of US$36.1 million, which included investments in raising Tailings Storage Facility 2 (TSF 2), upgrading the open-pit mining fleet, and equipment rebuilds.
Strong Cash Flow and Balance Sheet
Centamin’s financial performance remained robust, with the Group generating US$75.5 million in adjusted free cash flow in Q3 QTD. As of 31 August 2024, the Company held US$244 million in cash and liquid assets, and total liquidity of US$394 million, including a US$150 million undrawn sustainability-linked revolving credit facility. This figure is reported ahead of the interim dividend payment of 2.25 US cents per share, amounting to US$26.1 million, due on 27 September 2024.
Full-Year 2024 Outlook: Guidance Reaffirmed
Centamin has reiterated its full-year guidance, with production expected to be weighted towards the second half of 2024. The Company continues to project annual gold production in the range of 470,000 to 500,000 oz, with current performance tracking towards the midpoint of this guidance.
Cost Guidance:
- Cash cost guidance remains between US$700 and US$850 per ounce produced.
- AISC guidance is expected to range between US$1,200 and US$1,350 per ounce sold.
- These cost estimates factor in diesel prices ranging from 75 to 90 US cents per litre, with the year-to-date average realised price at 79 US cents per litre.
Capital Expenditure Plans
Centamin maintains its full-year adjusted capex guidance at US$215 million, which includes:
- US$112 million in sustaining capex.
- US$103 million in non-sustaining capex, of which US$58 million is allocated to growth projects funded from Centamin’s treasury and recovered over three years.
Additionally, due to the reduction in the strip ratio during H1 2024, up to US$45 million in sustaining deferred stripping is now budgeted for H2 2024, with US$7 million already capitalised in Q3 QTD.
