Centamin Achieves Annual Gold Production Targets, Witnessing a Surge in Revenue

Centamin had a solid run in 2023, pulling off an impressive gold production of 450,058 ounces and hitting its yearly target for the third year running.

Looking ahead, Centamin has set a production goal ranging from 470,000 to 500,000 ounces for this year. This optimistic outlook is fueled by continuous improvements at its main Sukari mine in Egypt, taking advantage of the favorable gold pricing.

In the last quarter of 2023, Centamin reported a production of 128,127 ounces, marking a 17% increase from the same quarter in 2022, which had 109,564 ounces.

The company notched up a quarterly revenue of $265 million, coming from the sale of 133,465 ounces of gold at an average realized gold price of $1,983 per ounce. This showcases a notable 41% jump compared to the same period in the previous year, which had revenue of $188 million.

For the entire year of 2023, Centamin raked in $892 million in revenue, generated from the sale of 456,625 ounces of gold at an average realized gold price of $1,948 per ounce. This reflects a solid 13% increase from the $787 million recorded in 2022.

Centamin invested a hefty $750 million over the past four years to boost efficiency at Sukari, Egypt's lone modern gold mine. They're now gearing up to connect to the country's electrical grid and their own solar panels, a move expected to slash $41 million annually in diesel costs.

The company is also actively exploring a 3,000 sq. km. area in the eastern desert near the mine in the quest for fresh discoveries. The budget for this includes 15,000 meters of reverse circulation drilling, metallurgical testing, a conceptual resource estimate, and an optimization study to guide the drilling.

Initial results posted on January 9 revealed promising finds, such as 46 meters grading 3.3 grams of gold per tonne from drill hole LSRC030 and 77 meters at 1.84 grams from drill hole LSRC012 at the Little Sukari prospect, situated 28 km west of the Sukari mine.

At the Umm Majal prospect, located 23 km west of the mine, drill hole UMRC006 cut 18 meters grading 2.33 grams from a depth of 21 meters, and drill hole UMRC003 returned 15 meters at 1.46 grams from 4 meters down.

Sukari, expected to operate until 2035, holds 194 million proven and probable tonnes grading 1.23 grams per tonne for 7.7 million ounces of contained gold, as per the company's statement last month. The mine also boasts 392 million measured and indicated tonnes at 1.06 grams per tonne for 13.4 million ounces of contained gold.

Shares in Centamin saw a 4.5% increase in Toronto on Thursday morning, with the company currently holding a market capitalization of C$1.34 billion.

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