MARTIN HORGAN, CEO,commented: 'We maintain our commitment to safety and are pleased to announce zero lost time injuries in the quarter.
Operationally, the decision to complete the plant maintenance demonstrates our commitment to the long-term stewardship of Sukari and due to our operational flexibility 2023 production guidance is maintained.
Today's results reflect another period of disciplined cost management, putting us on target for the lower half of our 2023 cost guidance range. Our financial strength and the savings made against our 2023 budget have also given us the flexibility to accelerate some key 2024 capital expenditures into 2023 without impacting guidance.'
HIGHLIGHTS
Strong cost performance
Zero lost time injuries: There were no lost time injuries Q3 resulting in a lost time injury frequency ('LTIFR') of zero. The total recordable injury frequency rate ('TRIFR') was 3.83 per one million hours worked
Gold production of 101,370 ounces - as published on 12 October 2023 - bringing the total gold production for the nine months of the year ('YTD') from the Sukari Gold Mine ('Sukari') to 321,931 oz and is on track for the lower end of the 2023 guidance range
Revenue of US$200.4 million (YTD: US$626m), generated from gold sales of 103,807 oz (YTD:323koz) at an average realised gold price of US$1,927/oz sold (YTD: US$1,933/oz)
Cash costs of US$882/oz produced (YTD: US$859/oz) targeting the lower half of the 2023 guidance range
All-in sustaining costs ('AISC') of US$1,266/oz sold (YTD: US$1,240/oz) targeting the lower half of the 2023 guidance range
Capital expenditure ('capex') of US$59.1 million (YTD US$166m) reflecting capital cost savings from lower fuel costs and optimisation of the open pit fleet maintenance strategy in line with the new Sukari life of mine plan
Sukari 30MWAC solar plant has been operating at nameplate levels for twelve months as of September, successfully displacing 22 million litres of diesel fuel with renewable power to reduce greenhouse gas ('GHG') emissions by approximately 59,000 tonnes of CO2-e
Delivered the Sukari new life of mine plan on 12 October 2023 demonstrating the potential for increased long-term gold production, lower operational costs, reduced operational risk and significantly reduced carbon emissions (link to RNS here)
New Egyptian mining regulatory framework agreed in principle establishing a clear, competitive exploitation structure for the development of new mining concessions. This framework will apply to commercial discoveries made on Centamin's highly prospective 3,000km2 Eastern Desert Exploration blocks ('EDX') (link to RNS here)
Strong and flexible balance sheet with available cash and liquid assets of US$126 million (at 30 September 2023) after the distribution of US$23 million to shareholders as an interim dividend, and total liquidity of US$276 million including the undrawn US$150 million sustainability linked revolving credit facility
2023 OUTLOOK
Annual guidance on track
Gold production guidance range of 450,000 to 480,000 oz per annum and targeting the lower end
Cash cost guidance range of US$840-990/oz produced and AISC guidance range of US$1,250-1,400/oz sold, now targeting the lower half
Capex guidance is maintained at US$273 million with further detail below
Exploration spend is results-driven. 2023 exploration expenditure budget is US$30 million, including US$23 million for the pre-development study work on the Doropo Gold Project
KEY DELIVERABLES
Group Mineral Resource and Reserve update (Q4 2023)
Group Exploration Update (Q4 2023)
Doropo Gold Project definitive feasibility study (mid-2024)
WEBCAST AND CONFERENCE CALL
The Company will host a webcast and conference call today, Thursday, 19 October 2023 at 08.30 BST to discuss the results, followed by an opportunity to ask questions.
Dial-in telephone numbers:
United Kingdom (and all other locations) +44 (0) 204 587 0498
United States +1 646 664 1960
Participation access code: 686280
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 direct or indirect 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, the risks and uncertainties associated with the direct and indirect impacts 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
Reclassified from operating expenditure, from 2021, the Company implemented a more granular methodology to the accounting and classification of waste-stripping costs, in line with IFRS accounting standards. As such, there is an accounting reclassification of open pit waste mining costs, resulting in a reduction in total cash costs with a corresponding equal increase in the sustaining expenditure and therefore AISC, with no impact on net cash flow.
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 or visit www.rns.com.
CENTAMIN PLC 
