Centamin helped by lower production costs in 2023

Gold miner Centamin pointed to a further increase in annual production in 2024 after meeting forecasts with last year's output, with costs coming in below guidance.

In a fourth-quarter update, the company said quarterly production came to 128,127 ounces (oz), driving full-year output to 450,058 oz for 2023, at the low end but within the 450-480k oz guidance.

Fourth-quarter revenues totalled $265m, pushing the full-year result to $892m.

However, annual cash costs delivered at the lower half of the 2023 guidance range ($840-990/oz), while all-in sustaining costs came in at $1,220/oz, below the $1,250-1,400/oz guidance. As a result, annual capital expenditure of $204 million was well below the target of $272 million.

Looking ahead, the company said it expects to produce 470-500k oz of gold in 2024.

"We look forward to 2024, guiding for another increase in annual gold production. Combined with our disciplined approach to managing operating costs, Centamin is extremely well-positioned to benefit from the current strong gold price environment, as we complete our capex reinvestment programme and connect Sukari to the Egyptian national grid," said chief executive Martin Horgan.

The stock was up 2.2% at 93.53p by 0852 GMT.