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(Alliance News) - Centamin PLC said on Wednesday it expects to produce over 500,000 ounces of gold per year over the next decade following a bumper reserve increase at its Sukari mine in Egypt.
Gold mining company reported a net 1.1 million ounce mineral reserve growth at its Sukari mine, representing a 23% increase on proven and probable mineral reserves. This is the company's largest reserve increase in ten years.
Centamin also provided a three-year outlook and said it expects to produce 450,000 to 500,000 ounces in 2024 with an estimated capital expenditure of USD165 million.
Its USD100 million cost savings programme has been raised by 50% to USD150 million, and will be delivered by 2024.
Centamin said its roadmap to 500,000 ounces of gold per year was underpinned by a robust interim 12-year life of mine schedule which includes an underground expansion study set for completion in the second half of 2022.
The firm added that there are further upside drivers yet to be modelled, such as the emergence of "bonanza" high grade structures within its open pit and underground.
Chief Executive Martin Horgan said: "Today marks significant progress against our Sukari reset plans. The transformed approach to the management of Centamin has delivered excellent results including a net 1.1 million ounce mineral reserve growth at Sukari - representing the largest reserve increase in ten years. Within our Sukari 300,000 metre budgeted drill programme for 2022, we have an active pipeline of identified resource conversion and extensional drill targets which gives us significant confidence in continuing to grow this world class asset.
"Our improved geological model underpins our new robust 12 plus year mine schedule and from this we have identified a clear roadmap to consistently producing greater than 500,000 ounces per annum from the Sukari Gold Mine over the next decade."
Shares were up 0.1% at 92.23 pence on Wednesday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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