Centamin pt121 Oct 2020 08:06
QUARTERLY REPORT AND UPDATED OUTLOOK
for the three months ended 30 September 2020[1]
MARTIN HORGAN, CEO, commented: "The third quarter marked another solid performance, bringing 2020 year to date free cash flow generated to US$137 million, with a strong balance sheet of US$345 million in net cash and liquid assets.
Following our operational update on 2 October, today we have refined our 2020 guidance to 445,000 - 455,000 ounces of gold produced. Reflecting the continued work required to improve operational flexibility in the open pit, 2021 production is forecast at 400,000 - 430,000 ounces. We have already commenced an increased waste stripping programme to improve optionality in the open pit, the benefits of which are expected to start to flow through in 2022.
We will present the conclusions of the Phase 1 Life of Asset review on 2 December 2020. This will cover in more detail the three-year outlook for Sukari, as well as a series of initiatives targeted at improving costs and productivity.
Operational safety remains a primary focus for management, and this quarter's safety record is evidence of the continued progress in this area. We have strengthened the leadership team, notably in the areas of geology, projects and environmental & social. These appointments add further depth to our management capacity and operational capability.
During September, Centamin submitted applications for several new exploration licences in Egypt and we look forward to continuing to work with our partners at EMRA and the Ministry of Petroleum to further develop Egypt's gold industry."
HIGHLIGHTS[2]
· Zero Lost Time Injuries ("LTI") during Q3, resulting in a Group Lost Time Injury Frequency Rate ("LTIFR") of zero (YTD: LTIFR of 0.16[3]). The COVID-19 management plan continues to successfully support operations
· Gold production[4] in the third quarter ("Q3") of 128,240 ounces ("oz") from the Sukari Gold Mine ("Sukari"), bringing production for the nine months of the year ("YTD") to 384,324 oz. Revenue generated of US$230 million (YTD: US$678m) from gold sales of 118,617 oz at an average realised gold price of US$1,933/oz sold
· Cash costs for Q3 of US$682/oz produced (YTD: US$655/oz) and all-in sustaining costs ("AISC") of US$961/oz sold (YTD: US$918/oz), reflecting the scheduled increase in capital expenditure
· Adjusted Group free cash flow of US$36 million was generated in Q3 (YTD: US$137m), after US$39 million of capital expenditure (YTD: US$90m) and US$64 million was distributed to the Egyptian government in profit share payments and royalties accrued (YTD: US$178m)
· Net cash and liquid assets[5] of US$345 million, as at 30 September 2020, after payment of the second interim dividend of US$69 million on 11 September 2020
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