TIDMCEY
RNS Number : 4076B
Centamin PLC
30 January 2020
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY (IN WHOLE OR IN PART) IN, INTO OR FROM ANY JURISDICTION
WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF
SUCH JURISDICTION
FOR IMMEDIATE RELEASE
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%
-------------- --------------- ------------ ----------- -------- -------- ------ -------- -------- ------
US$'000
Cash costs produced 89,676 83,917 7% 82,579 9% 333,037 289,394 15%
AISC US$'000 sold 108,333 123,624 (12%) 118,911 (9%) 439,318 420,116 5%
Unit cash US$/oz
costs produced 605 860 (30%) 609 (1%) 699 624 12%
Unit AISC US$/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
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
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 + 44 (0) 20 7466 5000
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 or visit www.rns.com.
END
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