Centamin expects higher gold output on Sukari boost

The company produced 452,320 ounces of gold in 2020

  
Image used for illustrative purpose only. A worker at Ashanti goldfields' big mine in Obuasi, Ghana, supervises the pouring of gold heated to around 1,600 centigrade. Ashanti, one of Africa's biggest gold mining companies, is the subject of rival merger bids.

Image used for illustrative purpose only. A worker at Ashanti goldfields' big mine in Obuasi, Ghana, supervises the pouring of gold heated to around 1,600 centigrade. Ashanti, one of Africa's biggest gold mining companies, is the subject of rival merger bids.

REUTERS/Luc Gnago

Centamin Plc said on Wednesday that a review of its Sukari mine in Egypt indicated the largest reserve growth in a decade.

The London-listed miner said the increased reserve in excess of one million ounces at Sukari, its sole gold mine, underpins its plans to produce 500,000 ounces per annum of gold over the next 10 years. The company produced 452,320 ounces of gold in 2020. 

The review of the mine, which experienced production challenges in October last year after a problem with stability in one of the open pit walls, also aimed at improving productivity.

The company also provided a three-year outlook and expects to produce 450-500,000 ounces in 2024 with an estimated capital expenditure of $165 million.

Centamin said a $100 million cost-savings programme has been increased by 50%, to be achieved by 2024.

Shares of the FTSE midcap constituent were up 1% at 93.06 pence at 0814 GMT, outperforming a 0.3% rise in the wider index.

(Reporting by Shanima A in Bengaluru; Editing by Sriraj Kalluvila) ((shanima.a@thomsonreuters.com; (Direct: +91 77 6034 7399 );))