Centamin reiterates full-year 2017 production and cost guidance

Centamin´s levels of production for the first three months of the year were in-line with company guidance, leading management to reiterate its full-year forecasts.

Egypt-focused Centamin said the 13% year-on-year drop in gold output to 109,187 ounces was the result of the planned reduction in average grades from its open pit operations at Sukari.

The preliminary data meant gold output was 20% below the fourth quarter 2016 mark.

During the reporting period, the open pit had continued to develop a low-grade cutback in the east wall, as per the mine plan.

That saw open pit ore production rise 14% to 2,478 carats but the average head grade to its plant fell to 0.58 grammes per tonne, which was below both its reserve grade and forecast average grade for 2017.

Quarterly throughput at the process plant slipped by 1% from the previous quarter to 2,908 carats, but was in-line with Centamin's 2017 annual forecast of 11.75m tonnes milled.

Nonetheless, ore grades were expected to increase in the second quarter as the cutback in the east wall is further progressed.

Furthermore, given coninuing strong levels of productivity at its processing and underground mining operations Centamin chief Andrew Pardey reiterated the company's full-year 2017 production guidance of 540,000 ounces of gold at a cash operating cost of $580/oz. and all-in-sustaining cost of $790/oz..