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Centamin increases gold production in Egypt in second quarter, flags inflationary pressures

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(Kitco News) – Gold miner Centamin (TSX: CEE) reported today that in Q2 2022, its Sukari gold mine in Egypt produced 110,788 oz of gold, an 11% increase compared to Q2 2021 (100,228 oz).

The company said that production increase was attributable to the successful transition to owner mining alongside ongoing productivity improvements such as the use of lightweight high-capacity truck trays in the open pit.

Centamin also reaffirmed its production and cost guidance for 2022 while investing for operational consistency and growth. The company plans to produce between 430,000 and 460,000 oz of gold in 2022, at cash costs of US$900-1,000/oz produced and AISC of US$1,275-1,425/oz sold.

Importantly, the company said it acknowledges inflationary pressures continuing through H2 2022 and now anticipates cash costs and AISC for 2022 in the upper end of the guidance range.

Centamin added it is in a strong financial position, with net cash and liquid assets to US$176.4 million as at 30 June 2022. The company also noted it remains unhedged and debt-free, with an update on the capital structure review expected in Q3 2022. 

Centamin’s flagship asset is the Sukari gold mine, 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.

In addition, 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 approximately 3,000km2 of prospective exploration ground in Egypt’s Arabian Nubian Shield.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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