REG - Centamin PLC - Q4 2019 Results
30/01/2020 07:01
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RNS Number : 4076B Centamin PLC 30 January 2020
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30 January 2020
Centamin plc
("Centamin" or "the Company")
(LSE:CEY, TSX:CEE)
Quarterly Report
for the three months ended 31 December 2019
HIGHLIGHTS 1
· Gold production 2 of 148,387 ounces from the Sukari Gold Mine
("Sukari") for the three months to 31 December 2019 ("Q4"), totalling 480,529
ounces for the full year 2019 ("FY");
· Gross revenue was US$204.1 million in Q4, generated from 137,065
ounces in gold sales at an average realised price of US$1,487 per ounce;
· Gross revenue was US$658.1 million in 2019, generated from
470,020 ounces in gold sales at an average realised price of US$1,399 per
ounce;
· Group lost time injury frequency rate ("LTIFR") of 0.24 per
200,000 workplace hours for Q4 (FY: 0.29) with a continued focus on creating a
zero-harm workplace;
· Q4 costs reflected the strong operational performance in the
period and brought FY costs in line with guidance: Q4 cash costs of US$605 per
ounce produced (FY: US$699/oz) and all-in sustaining costs ("AISC") of US$792
per ounce sold (FY: US$943/oz);
· Strong balance sheet with no debt, no hedging and cash and liquid
assets 3 of US$348.9 million, as at 31 December 2019 an increase of almost
US$60 million since 30 September 2019;
· Final proposed dividend of 6.0 US cents per share (US$69.4
million), which would bring total 2019 dividend to 10.0 US cents per share
(US$115.6 million);
· Excellent underground drill results at Sukari, including
high-grade Ptah intercepts of 0.6m @ 1,187 g/t, 1.4m @ 292 g/t and 0.5m @ 547
g/t, confirming high-grade continuity on the east and western contacts; and
· Leadership evolution: Ross Jerrard, Chief Financial Officer
("CFO") was appointed as interim Chief Executive Officer ("CEO") and the
process to identify the permanent CEO is well advanced. James ("Jim")
Rutherford was appointed as an independent Non-Executive Director and Deputy
Chairman to migrate to Chairman during 2020.
2020 Outlook
· 2020 guidance remains unchanged:
o Production 510,000-540,000 ounces of gold (weighted approximately 60% to
H2)
o Open pit material is expected to contribute 75% of the full year
production driven by higher grade Stage 4 ore; the balance is scheduled to
come from the underground, specifically Ptah as the focus within Amun is
development
o Cash costs of production between US$630-680 per ounce produced
o AISC between US$870-920 per ounce sold
· The Sukari life of asset review is ongoing; a series of
optimisation studies across each section of the mine are underway, with
results expected throughout 2020, identifying areas of improvement;
· Total capital expenditure in Egypt is budgeted to be c.US$190
million:
o c.US$140 million to be spent at Sukari
§ Sustaining capex of c.US$95 million, in line with routine work programme
§ Non-sustaining capex of c.US$45 million, including construction of the
second tailings storage facility
o c.US$50 million of treasury will be invested into long-term growth
projects, including solar power. The capital outlay is recoverable as per the
Concession Agreement
· c.US$20 million of exploration costs to be incurred outside of
Egypt, at Doropo, Batie West and ABC projects; and
· Further board changes are planned in 2020 as the Company
continues to reshape and strengthen the leadership team.
Corporate Strategy
· The Company received an unsolicited approach from Endeavour
Mining. Following a comprehensive and reciprocal due diligence process, the
Board unanimously concluded that the possible offer materially undervalued
Centamin and its prospects. The Board notes that Endeavour withdrew its
possible offer.
· The Board is highly confident in Centamin's strategy of
maximising the value of its asset base and promoting further growth both
organically and through accretive opportunities which create value for
shareholders. The Group's business model - centred around our high-quality,
cost-advantaged asset base, sustainable reinvestment in growth through
exploration, and revitalised culture of continuous improvement - gives us
confidence in continuing to deliver strong shareholder returns.
Ross Jerrard, CEO, commented:
"Centamin has undertaken a number of initiatives in 2019 to improve the
consistency at, and increase cash flow from, the Sukari mine, which have
contributed to a strong fourth quarter performance. Consistent operational
delivery against the mine plan remains the key objective. The leadership teams
have been strengthened and I am confident in our ability not just to deliver
in the near term but also to enhance the long-term value at Sukari, and the
rest of the portfolio.
Centamin's mission is to be a multi-asset gold producer of quality, long-life
assets. We continue to assess opportunities for value-accretive
diversification in conjunction with the investment in organic growth projects
that support and increase the long-term value of the Group."
Table 1. Group Production Summary
Quarter on quarter comparative Year on year comparative
units Q4 2019 Q3 2019 % Q4 2018 % FY 2019 FY 2018 %
Open pit
Total material mined kt 17,385 19,762 (12%) 21,075 (18%) 78,391 77,877 1%
Ore mined kt 4,006 3,625 11% 4,990 (20%) 14,372 23,131 (38%)
Ore grade mined g/t Au 0.98 0.75 32% 0.75 31% 0.80 0.60 34%
Ore grade milled g/t Au 1.19 0.83 44% 0.92 30% 0.90 0.76 19%
Underground
Ore mined kt 232 275 (16%) 314 (26%) 1,087 1,242 (12%)
Ore grade mined g/t Au 6.45 3.94 63% 6.21 4% 5.32 5.69 (6%)
Processing
Ore processed kt 3,044 3,207 (5%) 3,198 (5%) 12,859 12,568 2%
Feed grade g/t Au 1.60 1.10 45% 1.45 10% 1.28 1.26 2%
Gold recovery % 89.5 85.6 5% 89.1 1% 88.1 88.7 (1%)
Gold production oz 148,387 98,045 51% 137,600 8% 480,528 472,418 2%
Gold sold oz 137,065 108,826 26% 148,851 (8%) 470,020 484,322 (3%)
Avg realised gold price US$/oz 1,487 1,478 1% 1,235 20% 1,399 1,267 10%
Cash costs US$'000 produced 89,676 83,917 7% 82,579 9% 333,037 289,394 15%
AISC US$'000 sold 108,333 123,624 (12%) 118,911 (9%) 439,318 420,116 5%
Unit cash costs US$/oz produced 605 860 (30%) 609 (1%) 699 624 12%
Unit AISC US$/oz sold 792 1,141 (31%) 809 (2%) 943 884 7%
Conference Call and Webcast
The Company will be hosting a webcast and conference call today, Thursday, 30
January at 08.30 GMT (UK time) to discuss the results with investors and
analysts, followed by an opportunity to ask questions.
Please find below the required participation details for the call:
Webcast link:
https://www.investis-live.com/centamin/5e1711fa8d57e813006eb404/ofbv
(https://www.investis-live.com/centamin/5e1711fa8d57e813006eb404/ofbv)
Conference call
Dial-in telephone number:
+44 20 3936 2999
Participation access code: 818534
A replay will be made available on the Company website by the close of
business today.
For more information, please visit the website www.centamin.com
(http://www.centamin.com) or contact:
Centamin plc Buchanan
Ross Jerrard, Chief Executive Officer Bobby Morse
Alexandra Carse, Investor Relations Chris Judd
+44 (0) 7700 713 738 Kelsey Traynor
alexandra.carse@centamin.je (mailto:alexandra.carse@centamin.je) + 44 (0) 20 7466 5000
centamin@buchanan.uk.com (mailto:centamin@buchanan.uk.com)
____________________________________________________________________________________________________________
OPERATIONAL REVIEW
Q4 2019 vs Q4 2018
Sukari Gold Mine, Egypt
Production
Gold production was 148,387 ounces for the quarter, an 8% improvement compared
to the corresponding quarter in 2018 ("YoY"). 2019 production was 480,529
ounces, 2% below the guidance of 490,000 ounces but a 2% improvement on 2018.
Gold sold of 137,065 ounces (FY: 470,020 ounces) not including 19,410 ounces
of gold bullion in the safe at year-end due to timing of gold shipment
schedules.
Costs
Absolute costs and unit costs were within guidance for 2019. Absolute cash
costs of production of US$89.7 million (FY: US$333.0m), increased 9% YoY.
Absolute AISC of gold sold was US$108.3 million (FY: US$439.3m), 9% decrease
YoY.
Unit cash costs of production of US$605 per ounce produced (FY: US$699/oz), a
1% reduction YoY, mainly due to the increase in gold ounces produced. Despite
higher reagent costs in Q4, mine production costs were reduced due to fewer
tonnes processed, increased plant recoveries and fuel savings. A movement in
inventory from a reduction in stockpiles increased cash costs of production.
Unit AISC of US$792 per ounce sold (FY: US$943/oz), a 2% reduction YoY due to
increased sales volumes.
Open pit Mining
Open pit mining delivered in excess of 1.0g/t material to the mill
consistently throughout Q4 and in line with the mine plan.
Total material mined was 17.4Mt, an 18% reduction YoY (FY: 78.4Mt). Total ore
mined was 4.0Mt at an average grade of 0.98g/t (FY: 14.4Mt at 0.80g/t), this
was a 20% reduction in tonnes YoY and a 31% improvement in grade YoY
predominantly driven by mining in the higher-grade Stage 4 West. The strip
ratio was 3.3 (FY: 4.5). There were minor disruptions to the waste material
movement in Q4 due to a short but heavy rainfall event and the short-term
unavailability of an excavator requiring unscheduled maintenance.
The open pit delivered 2.8Mt to the plant, at an average milled grade of
1.19g/t, and 213kt at an average grade of 0.38g/t to the dump leach pads.
Stockpiles increased from 12.82Mt at 0.45g/t to 13.85Mt at an average grade of
0.46g/t in Q4.
In 2020, the Stage 4 pit is the predominant source of ore, with increased
Stage 5 pit contribution in H2, as waste material is moved. Stage 5 stripping
will continue throughout 2020, ahead of transitioning to predominantly Stage 5
ore mining in 2021.
Underground Mining
Underground mining delivered 44% more ounces in Q4, from 16% less ore tonnes
mined than in Q3, this was driven by continued improvement in dilution
controls, contractor management and mining high-grade stopes deferred from
Q3.
Total ore mined was 232kt at an average total grade of 6.5g/t (FY: 1.1Mt at
5.3g/t). This represented a 26% decrease in tonnes YoY and a 4% improvement in
grade YoY, predominantly as a function of the mine plan and benefiting from
improvements in dilution controls and contractor management.
Ore mined from stoping was 151kt at 7.7 g/t, which was a 24% decrease in
tonnes YoY and a 4% reduction in grade YoY, (FY: 615kt at 7.0g/t). During
the quarter, backfilling commenced in areas, using cement rock fill ("CRF"),
and the gradual introduction of bottom up mining method. Approximately 1,423
metres (FY: 7,660 metres) of development was completed in Amun and Ptah, a 16%
decrease YoY, with a focus on decline development, in conjunction with ore
drive and cross-cut development. Ore mined from development was 80kt at an
average grade of 4.1g/t (FY: 472kt at 3.2g/t). This was a 30% reduction in
tonnes and a 32% improvement in grade YoY.
Underground infrastructure upgrades commenced in early Q4 and will continue
through 2020. The strong exploration results received throughout 2019, in
particular from Horus, located below the existing underground, and early
indications from the 2D seismic programme, meant that strategically, the
previously planned infrastructure upgrades required reassessment with a
longer-term view.
In 2020, in addition to non-sustaining capital, approximately US$12.5 million
of growth capital will be invested in the underground operations, including a
material upgrade to the mine infrastructure. Using a raise bore, a fresh air
raise ("FAR") and return air raise("RAR") in addition to the existing
ventilation system, will significantly improve air quality and temperature at
greater depths, allowing for increased future mining activity.
These upgrades are scheduled for completion by the end of 2020. To minimise
the disruption to operations and allow for a safe and time efficient build,
ore mining in the Amun will be reduced by up to 300kt in 2020, with Ptah
providing the primary source of underground ore.
Processing
The plant processed 3.0Mt of ore, a 5% decrease YoY, (FY: 12.9Mt) at a higher
average feed grade of 1.6g/t, a 10% improvement YoY (FY: 1.3g/t). Recovery
rates improved 5% QoQ to 89.5%, which was a 1% improvement YoY (FY: 88.1%).
The plant utilisation was 95.2%.
The Company has completed a series of engineering and optimisation studies
with Lycopodium Minerals, which have identified a number of processing cost
and control opportunities.
Dump leach operations contributed 3,103 ounces, a 10% reduction YoY, (FY:
8,641 ounces) in line with increased mining in higher grade sulphide material.
The focus in 2020 continues to be on maximising operational margins on plant
throughput.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REVIEW
Social and Economic Contribution
Centamin mining operations, including exploration projects, generate economic
benefit for the countries and communities where we operate through payments to
government, employee and contractor wages, payments to suppliers and
contractors, vocational training, community investment and academic
investment.
In Q4, the Egyptian government earned US$6.1 million in royalty payments (FY:
US$19.7 million). As per the terms of the Concession Agreement, Sukari cash
flow generation resulted in profit share payments of US$34.2 million (FY:
US$87.1 million) made to the Egyptian government.
Health and Safety
During Q4, unfortunately there were two Lost Time Injuries ("LTI") reported at
Sukari, both involving contractors obtaining fractures. The Group LTIFR for Q4
was 0.24 per 200,000 workplace hours (FY: 0.29). There were zero LTI reported
at our projects in Burkina Faso and Côte d'Ivoire during the quarter. The
focus remains on reducing the number of injuries and incidents with the
objective of zero harm.
Governance
The Company continues to strengthen operational competencies across the Group
through development and recruitment as the Company positions itself for the
next stage of growth.
The Board changes during the quarter reflect the Company's ongoing commitment
to achieving the highest standards of corporate governance:
· Andrew Pardey informed the Board of his intention to retire in
October. Following the conclusion of active projects and completing a handover
to Ross Jerrard, as interim CEO, Andrew stepped down as a Director of the
Company on 13 December 2019.
· Ross Jerrard, incumbent CFO, was appointed to the role of interim
CEO in December. Ross has demonstrated excellent leadership skills, assembling
and managing his multi-jurisdictional finance team. Ross has established
strong relations within Egypt, specifically with key government officials at
all levels. Ross will retain his responsibilities for the finance function as
CFO.
· Jim Rutherford joined the Centamin Board on 1 January 2020 as an
independent Non-Executive Director and Deputy Chairman and will migrate into
the role of Chairman during 2020, succeeding Josef El-Raghy. Jim brings to the
Board greater than 25 years' experience in investment banking and investment
management, specialising in the global mining and metals sector.
The process to appoint a permanent CEO is well advanced.
Water Management
The Company is committed to improving water management. The 2019 target of a
50:50 balance between seawater drawn and the use of closed circuit recycled
water was achieved predominantly through changes made to the processing water
usage. Changes to water usage implemented throughout 2019 saw the Company
improve its water usage to a balance of 76:24 compared to 27:73 in 2018.
In Q4 recycled water usage equated to 59%, resulting in a 59:41 split between
recycled water and sea-water draw, a 40% improvement YoY.
Solar Power Plant
The planned 36Mw DC / 30Mw AC peak power solar hybrid power plant will
significantly reduce Sukari's carbon footprint and is expected to reduce
diesel consumption for power by approximately 18 million litres per annum.
The new facility is expected to deliver significant cost savings over the life
of operations at Sukari for a modest capital cost of approximately US$37
million, of which approximately US$6 million has already been committed in Q4,
upgrading the high voltage reticulation on site. Centamin will recover its
initial capital outlay under the cost recovery mechanism set out in the
Concession Agreement.
Engineering and earth-clearing works have commenced. Construction expected to
start in Q2.
Tailings Storage Facility ("TSF")
The Company's current downstream TSF at Sukari ("TSF1"), will reach capacity
in the medium term. The engineering and design studies for a second downstream
TSF ("TSF2"), extending tailings deposition to beyond 2030, were completed by
Knight Piesold in Q4. Construction will commence in 2020.
Legal
There are no reportable changes to the status of the Concession Agreement
appeal or the Diesel Fuel Oil case during Q4. All documentation has been
submitted by the Company to the courts, in respect of both cases.
FINANCIAL POSITION (unaudited)
Centamin is committed to its policy of being 100% exposed to the gold price
through an unhedged position. The Company is in a solid financial position
with cash and liquid assets of US$348.9 million, as at 31 December 2019, and
no debt.
The Company's strong balance sheet and cash flow generation allows the
financial flexibility to re-invest in the long-term sustainability of the
business, explore strategic opportunities, while maintaining shareholder
returns.
Free Cash Flow
Net cash generated from operating activities was US$93.6 million. After Sukari
profit share distribution and Group investing activities, Group free cash flow
was US$34.7 million (FY: US$74.3 million).
In 2020, as a minimum, free cash flow generation is forecast to be
sustainable, and thereby underpinning shareholder returns. This takes into
account the final step change in the profit share mechanism to 50:50 with our
Egyptian partners, EMRA, as of 1 July 2020, under the terms of the Concession
Agreement.
Capital Allocation
Final Dividend
The Company has a sustainable dividend policy in place, delivering six
consecutive years of shareholder returns. The Board regularly reviews
opportunities to compete for capital and maximise shareholder returns.
The Board have recommended a final proposed dividend of 6.0 US cents per share
to be approved by shareholders at Annual General Meeting , equating to US$69.4
million to be returned shareholders, resulting in a full year total dividend,
including interim, of 10.0 US cents for the 2019 financial year, equating to
US$115.6 million returned to shareholders.
Group Capital Expenditure
In Q4, sustaining capital expenditure was US$20.3 million (FY: US$85.1
million) with key investment attributed to underground exploration and
development and scheduled fleet rebuild programme. Non-sustaining exploration
activities of US$2.1 million was expensed in Q4 (FY: US$8.7 million).
Table 2. Q4 Group Capitalised Expenditure Breakdown
Q4 2019 Q4 2018 FY 2019 FY 2018
US$'000 US$'000 US$'000 US$'000
Sukari underground exploration 2,177 1,588 7,769 6,048
Sukari underground mine development 9,011 8,920 36,852 37,161
Other Sukari sustaining capital expenditure 9,071 8,312 40,471 45,982
Total sustaining capital expenditure 20,259 18,820 85,092 89,191
Non-sustaining Sukari exploration capitalised((1)) 2,103 2,270 8,709 7,587
((1) )(Includes US$7.7 million of the Sukari expenditure relating
to Cleopatra in non-sustaining capital expenditure before the offset of net
pre-production gold sales.)
In 2020, total capital expenditure in Egypt is budgeted to be c.US$190
million. Sustaining capex is stable at US$95 million and non-sustaining
capital expenditure is expected to be c.US$45 million, including US$23 million
for the construction of the second tailings storage facility ("TSF2"). This is
funded from Sukari cashflow.
The Company is reinvesting a further c.US$50 million of non-sustaining capital
into Sukari's long-term growth projects, including the construction of the
solar power plant, material upgrades to the underground infrastructure and
workforce accommodation and facilities. This capital outlay will come from
treasury and recovered over three years under the cost recovery mechanism set
out in the Concession Agreement.
Group Exploration Expenditure
In Q4, US$4.3 million (FY: US$16.5 million) was invested in advancing
exploration and development along the Cleopatra underground structures and on
earlier surface exploration regionally within the Sukari tenement. A total of
US$2.6 million (FY: US$16.8 million) was expensed in exploration at the
Company's West African assets, predominantly at the Doropo Project in Côte
d'Ivoire.
In 2020, c.US$20 million of exploration costs to be incurred outside of Egypt,
at Doropo, Batie West and ABC projects
Table 3. Q4 Group Exploration Expenditure Breakdown
Q4 2019 Q4 2018 FY 2019 FY 2018
US$'000 US$'000 US$'000 US$'000
Egypt((1,2)) 4,280 3,858 16,477 13,635
Burkina Faso 439 1,084 2,715 5,223
Côte d'Ivoire 2,148 3,419 14,168 15,783
Total exploration expenditure((2)) 6,867 8,361 33,360 34,641
((2) )(Includes US$8.7 million of non-sustaining capital
expenditure on for Sukari exploration and development which is capitalised )
( )
EXPLORATION REVIEW
Sukari Gold Mine, Egypt
The Sukari porphyry continues to return excellent results that show
mineralization remains open at depth and along strike and the high-grade
structures within the porphyry are not fully defined.
Over 11,500 metres of underground diamond drilling was completed in Q4, with
an average cost of US$176.70 per metre. Drilling was focused on resource
conversion, resource extension within the main underground assets and
unlocking longer-term opportunity at depth and along strike. Highlighted drill
intercepts can be seen in Table 4.
Amun / Ptah Production Decline
Drilling in the quarter was focused in Ptah with intercepts confirming the
high-grade quality of future production levels on eastern and western contacts
and structural extensions with a continuation of high-grade along strike and
down plunge.
The Amun intercepts continue to prove the high-grade extension of the Osiris
Thrust, Top of Horus and Horus Deeps, where the zones remain open along strike
to the north and south. The Q4 culmination of the 2019 drill programme confirm
the presence of high-grade gold mineralisation and structural continuity.
Cleopatra Decline
The 2019 drill programme from the Cleopatra decline confirmed the presence and
continuity of narrow high-grade gold veins within each of the three stacked
orebodies (from top to bottom: Cleopatra, Antoni and deeper Julius).
Initial long-term planning assessment of the growing north mine resource base
strongly indicates a number of potential extraction options, including a
larger open pit with subsequent sub-pit decline. The open pit optimisation
study is underway assessing the parameters around optimal extraction and
subsequent decline development plans to access deeper structures and
resources.
Regional Exploration
During Q4-2019, two surface rigs were operational, targeting the strike
extensions at depth of the Osiris Thrust-Horus Porphyry orebodies and provide
detailed core orientation for the 2D seismic feed data. Initial data
interpretation is encouraging, identifying multiple potential gold systems.
The 2D seismic de-risking, comprising 35km line along three independent
sections, was completed during the quarter, with data analysis and reporting
scheduled for completion in the near term.
Good surface anomalies were found at the V-Shear East prospect which will be
followed up by mapping and geological modelling. Resource definition drilling
of Quartz Ridge, V Shear South and V Shear North is planned during 2020.
Table 4. Sukari Q4 2019 Drill Highlights
Tenement ID Prospect ID Hole ID Level (mRL) Interval (m) Grade (Au g/t)
Sukari Gold Mine AMUN UGRSD2021 502.02 2 9.23
Sukari Gold Mine AMUN UGRSD2022 557.68 1.2 13.8
Sukari Gold Mine AMUN UGRSD2025 573.65 1 10.64
Sukari Gold Mine CLEO CUD170 1106.48 1 83.6
Sukari Gold Mine CLEO CRSD133 902.61 4.1 7.41
Sukari Gold Mine CLEO CUD218 1079.11 3 8.04
Sukari Gold Mine CLEO CRSD175 961.9 0.85 26.17
Sukari Gold Mine CLEO CUD170 1114.83 1.2 14.87
Sukari Gold Mine CLEO CUD195 1172.01 1 16.8
Sukari Gold Mine CLEO CRSD132 1011.21 1 11.61
Sukari Gold Mine CLEO CUD223 1052.11 0.3 23.9
Sukari Gold Mine CLEO CUD215 1057.75 0.75 12
Sukari Gold Mine HORUS UGRSD2022_W1 323.83 1 31.9
Sukari Gold Mine HORUS UGRSD2022 280.39 0.5 25
Sukari Gold Mine HORUS UGRSD2022 341.83 1 7.99
Sukari Gold Mine HORUS UGRSD2026 427.68 0.6 10.4
Sukari Gold Mine PTAH UGRSD1096 624.61 0.6 1187
Sukari Gold Mine PTAH UGRSD0948 613.58 1.4 292.5
Sukari Gold Mine PTAH UGRSD1095A 544.82 0.5 547
Sukari Gold Mine PTAH UGRSD1097 638.2 1 271
Sukari Gold Mine PTAH UGRSD1077 607.44 0.65 204
Sukari Gold Mine PTAH UGRSD1096 585.02 1 127
Sukari Gold Mine PTAH UGRSD1089 697.95 1 107
Sukari Gold Mine PTAH UGRSD0948 610.22 1.8 48.6
Sukari Gold Mine PTAH UGRSD1097 624.01 1 81.1
Sukari Gold Mine PTAH UGRSD1068 700.11 1 75.4
Sukari Gold Mine PTAH UGRSD0948 640.38 0.6 119
Sukari Gold Mine PTAH UGRSD1095 546.79 1.5 42.66
Sukari Gold Mine PTAH UGRSD0948 618.38 0.5 83.5
Sukari Gold Mine PTAH UGRSD1063 605.49 2.2 18.84
Sukari Gold Mine PTAH UGRSD1096 626.42 1 31.5
Sukari Gold Mine PTAH UGRSD1051 693.02 1 31
Sukari Gold Mine PTAH UGRSD1094 535.67 0.6 50
Sukari Gold Mine PTAH UGRSD1094 655.31 2 13
Sukari Gold Mine PTAH UGRSD1066 704.93 1 23.5
Sukari Gold Mine PTAH UGRSD1095 608.1 1.4 10.46
Sukari Gold Mine PTAH UGRSD1094 644.08 1 14.2
Sukari Gold Mine PTAH UGRSD1063 601.22 1 12.6
Sukari Gold Mine PTAH UGRSD1079 706.1 0.6 19.5
Sukari Gold Mine PTAH UGRSD1071 585.47 1 11.2
Sukari Gold Mine PTAH UGRSD1097 619.32 1 10.3
Doropo Project, Côte d'Ivoire
Doropo is an advanced exploration project within the Company's portfolio
outside Egypt. The 2019 drill programme was very successful with a resource
update of 2.44Moz measured and indicated, published in Q3. Drilling in Q4
was impacted by the unusually heavy wet season. The 2020 exploration programme
will focus on growing the Varale and Kilosegui deposits.
In 2020, the focus in H1 will be on resource drilling and better understanding
the resource growth potential from Kilosegui deposit before progressing
feasibility infrastructure conceptual layouts.
Project Studies
Environmental, social and community
Digby Wells UK Ltd. and PAH (CDI) SARL Ltd completed a preliminary
environmental, social and community screening assessment review (EIES-RAP).
Hydrogeology
GCS Water Consultants PTY Ltd completed a water resources and management
assessment including feasibility for local raw water feed options for the
future processing plant and associated infrastructure.
Geotechnical
SRK (UK) Ltd is scheduled to update the geotechnical review of the open pit(s)
on the updated resource model. The original work completed in Q4 2018,
included open pit geotechnical slope stability analysis. Geotechnical
assessments of caveability, fragmentation, subsidence and ground support
requirements were carried out based on geotechnical characterizations
developed from geological assessments and core logging data.
Mining
Engineering studies were initiated with the appointment of AMDAD PTY Ltd
mining engineering consultants, in conjunction with H&S PTY Ltd resource
consultants, have been progressing the project engineering studies. AMDAD are
updating the open pit mining preliminary optimisations and efficiency
analysis, with a focus on mining cost optimisations and sensitivity analysis.
Metallurgy and processing
Metallurgical test work was conducted by ALS-AMMTEC PTY (Perth), whilst
Lycopodium Minerals are providing the processing flowsheet, and the
preliminary development and operating expenditure estimates.
Knight Piesold completed the preliminary acid rock drainage and tailings dam
conceptual studies and layout analysis.
ABC Project, Côte d'Ivoire
ABC exploration drilling, originally planned for Kona Central and South, was
reduced in H2 2019 as additional resources were seconded to the Doropo Project
and assigned to the Kilosegui target.
Field exploration in Q4, focussed on the underexplored northern FarakoNafana
permit. The permit hosts a strong, 16km continuous arsenic-gold rich corridor
interpreted to be the strike extension of the resource-hosting Lolosso Gold
Corridor in the Kona permit. At Kona South and Central deposits, 3D modelling
continued, focusing on the resource geology model and high-grade-plunge
modelling for infill drill planning, targeting resource category and plunge
upgrade.
BATIE WEST PROJECT, BURKINA FASO
During 2019, field exploration at Batie West has been limited, whilst an
internal review of the project is concluded. The Company is currently
assessing the results of this review and has commenced building an internal
project team at the corporate and West African regional centres.
Forward-looking Statements
This announcement (including information incorporated by reference) contains
"forward-looking statements" and "forward-looking information" under
applicable securities laws (collectively, "forward-looking statements"),
including statements with respect to future financial or operating
performance. Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as "believes", "expects",
"expected", "budgeted", "forecasts" and "anticipates". Although Centamin
believes that the expectations reflected in such forward-looking statements
are reasonable, Centamin can give no assurance that such expectations will
prove to be correct. Forward-looking statements are prospective in nature and
are not based on historical facts, but rather on current expectations and
projections of the management of Centamin about future events and are
therefore subject to known and unknown risks and uncertainties which could
cause actual results to differ materially from the future results expressed or
implied by the forward-looking statements. In addition, there are a number of
factors that could cause actual results, performance, achievements or
developments to differ materially from those expressed or implied by such
forward-looking statements; general business, economic, competitive, political
and social uncertainties; the results of exploration activities and
feasibility studies; assumptions in economic evaluations which prove to be
inaccurate; currency fluctuations; changes in project parameters; future
prices of gold and other metals; possible variations of ore grade or recovery
rates; accidents, labour disputes and other risks of the mining industry;
climatic conditions; political instability; decisions and regulatory changes
enacted by governmental authorities; delays in obtaining approvals or
financing or completing development or construction activities; and discovery
of archaeological ruins. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such information or
statements. Forward-looking statements contained herein are made as of the
date of this announcement and the Company disclaims any obligation to update
any forward-looking statement, whether as a result of new information, future
events or results or otherwise. Accordingly, readers should not place undue
reliance on forward-looking statements.
1 Cash cost of production, AISC, and cash, bullion on hand, gold sales
receivables, and free cash flow are non-GAAP measures, referenced in 2018
Audited Annual Report and Accounts.
2 Gold produced is gold poured and does not include gold-in-circuit at
period end
3 Cash and cash equivalents, bullion on hand, gold sales receivables and
financial assets at fair value through profit or loss.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
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