REG - Centamin PLC - Sukari Power Update

CentaminAnnouncement

13/10/2022 07:01

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RNS Number : 7115C  Centamin PLC  13 October 2022

13 October 2022

Centamin plc

("Centamin" or "the Company")

LSE: CEY / TSX: CEE

 

Sukari power update - reducing costs and greenhouse gas emissions

Centamin is pleased to announce the solar plant at its Sukari Gold Mine has
entered the final stages of commissioning and is delivering savings ahead of
expectations. Furthermore, continued progress has been made to assess the
opportunity to utilise Egyptian grid power at Sukari.

SUKARI Solar power plant COMMISSIONING

Reduction in fuel consumption and costs

·      Consistent delivery of 36MW(DC) (nameplate capacity), converting
to 30MW(AC) of power since early September

·      Reduction in exposure to volatile fuel pricing with commissioning
saving up to 70,000 litres of diesel per day and averaging a reduction in
diesel consumption of 22 million litres per annum

·      Potential US$20 million in annual cost savings at current diesel
prices

·      Expected reduction in Scope 1 GHG emissions by 60,000 tonnes CO2
equivalent per annum and a subsequent reduction in volume of diesel trucked to
site

·      Full commissioning expected in Q4 2022.

EGYPTIAN GRID POWER STUDY

Potential to further reduce reliance on diesel

·      Active engagement with government and independent power
providers. Initial proposals to supply 30-50MW(AC) of grid power to Sukari
have been received and an internal evaluation is underway for potential
integration from 2024

·      50MW(AC) grid power supply creates the potential to fully
displace the use of diesel for power generation at Sukari. The minimum
30MW(AC) grid power combined with the existing 30MW(AC) of solar power creates
the potential to operate during daylight hours without using any diesel power
generation and substantially offsets diesel consumption during night time
hours

·      Grid proximity to site and existing infrastructure indicate a low
capital intensity

·      The Egyptian grid power is generated from natural gas and a mix
of renewables, such as hydro, solar and wind, creating the opportunity to
further reduce Sukari's GHG emissions.

·      Potential for further cost savings. Egyptian industrial grid
tariffs are significantly cheaper than the cost of power generation using
diesel fuel.

Martin Horgan, CEO, commented: "Delivery of this critical project is
instrumental to our ongoing commitment to reduce our reliance on diesel fuel,
minimise greenhouse gas emissions and realising material cost-savings. The
solar plant and potential to integrate grid power will contribute materially
to our environmental stewardship philosophy and our strategic objective of
maximising returns for all stakeholders."

 

About Centamin

Centamin is an established gold producer, with premium listings on the London
Stock Exchange and Toronto Stock Exchange. The Company's flagship asset is the
Sukari Gold Mine ("Sukari"), Egypt's largest and first modern gold mine, as
well as one of the world's largest producing mines. Since production began in
2009 Sukari has produced circa 5 million ounces of gold, and today has a
projected mine life of 12 years.

Through its large portfolio of exploration assets in Egypt and West Africa,
Centamin is advancing an active pipeline of future growth prospects, including
the Doropo Project in Côte d'Ivoire, and over 3,000km(2) of highly
prospective exploration ground in Egypt's Arabian Nubian Shield.

Centamin practices responsible mining activities, recognising its
responsibility to not only deliver operational and financial performance but
to create lasting mutual benefit for all stakeholders through good corporate
citizenship.

FOR MORE INFORMATION please visit the website www.centamin.com
(http://www.centamin.com) or contact:

 Centamin plc                                                 Buchanan

 Alexandra Barter-Carse, Corporate Communications             Bobby Morse/Ariadna Peretz/George Cleary

 +44 (0) 7700 713 738                                         + 44 (0) 20 7466 5000

 investor@centaminplc.com (mailto:investor@centaminplc.com)   centamin@buchanan.uk.com (mailto:centamin@buchanan.uk.com)

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. Such statements include "future-oriented financial information"
or "financial outlook" with respect to prospective financial performance,
financial position, EBITDA, cash flows and other financial metrics that are
based on assumptions about future economic conditions and courses of action.
Generally, these forward-looking statements can be identified by the use of
forward-looking terminology such as "believes", "expects", "expected",
"budgeted", "forecasts" and "anticipates"." and include production outlook,
operating schedules, production profiles, expansion and expansion plans,
efficiency gains, production and cost guidance, capital expenditure outlook,
exploration spend and other mine plans. 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; the risks and uncertainties associated with the ongoing impacts of
COVID-19 or other pandemic, 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. Financial outlook and future-ordinated financial
information contained in this news release is based on assumptions about
future events, including economic conditions and proposed courses of action,
based on management's assessment of the relevant information currently
available. Readers are cautioned that any such financial outlook or
future-ordinated financial information contained or referenced herein may not
be appropriate and should not be used for purposes other than those for which
it is disclosed herein. The Company and its management believe that the
prospective financial information has been prepared on a reasonable basis,
reflecting management's best estimates and judgments at the date hereof, and
represent, to the best of management's knowledge and opinion, the Company's
expected course of action. However, because this information is highly
subjective, it should not be relied on as necessarily indicative of future
results. 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, particularly in
light of the current economic climate and the significant volatility,
uncertainty and disruption caused by the outbreak of COVID-19. 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.

LEI: 213800PDI9G7OUKLPV84

Company No: 109180

 

 

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