(Alliance News) - Centamin PLC on Thursday reported one of the best ever quarterly results from the Sukari mine in Egypt.
Sukari, the company's only producing mine, achieved output of 148,387 ounces of gold in the fourth quarter of 2019, 51% higher than the prior quarter. This was due to improved grades, recoveries, and a year-end drawdown of gold-in-circuit.
However, this was not enough for Centamin to meet annual guidance. In October, the firm said the bottom end of prior guidance, 490,000 ounces, was still achievable.
On Thursday, Centamin reported 2019 gold production of 480,529 ounces, 2% higher than the year prior but short of that target.
For 2020, Centamin has issued guidance of between 510,000 ounces and 540,000 ounces of gold.
The company has been beset by operational difficulties at Sukari throughout 2019. This led third-quarter production to fall 17% on both the previous quarter and the same period a year earlier. There were also issues in 2018, with production that year 13% lower than in 2017.
"As expected, the fourth-quarter production result represents one of the strongest quarterly results from Sukari and is a significant achievement for our operational team," said Chief Executive Ross Jerrard.
"During 2019 there have been substantial changes in senior management and this transition in leadership is beginning to be reflected in our improved operating performance."
Jerrard has only recently taken up the role of CEO, with predecessor Andrew Pardey announcing his departure at the start of October.
Centamin recently became the target of a takeover bid. Canada's Endeavour Mining at the start of December made an all-share merger proposal that values Centamin at GBP1.47 billion, giving Centamin shareholders 47% of the combined firm.
Centamin was 0.6% higher on Thursday morning in London at 122.35 pence per share, giving it a market capitalisation about GBP1.40 billion.
The two have not been able to come to an agreement, however, and have criticised each other's behaviour. In the most recent update, just before Christmas, Centamin confirmed it had asked for an extension until January 14 - Tuesday next week - for Endeavour to decide whether to make a firm offer.
Centamin has said the current Endeavour proposal undervalues the company.
Toronto-listed Endeavour has five producing mines: Karma and Hounde in Burkina Faso, Ity and Agbaou in the Ivory Coast, and Tabakoto in Mali.
By George Collard; georgecollard@alliancenews.com
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Centamin PLC (CEY)