Centamin describes successful end to 2022 operations

The FTSE 250 company said annual revenue was $787m, with revenue in the fourth quarter coming in at $188m from an average realised gold price of $1,735 per ounce.

Its average realised gold price for the full year was $1,794 per ounce sold.

Costs were in line with guidance, with fourth quarter cash costs of $997 per ounce produced and all-in sustaining costs of $1,445 per ounce sold.

Full-year cash costs came in at $913 per ounce produced, with all-in sustaining costs of $1,399 per ounce.

The firm reported capital expenditure of $224.3m, in line with guidance, with its fourth quarter spend totalling $64.8m as it made “excellent progress” on key capital projects, including the commissioning of the 36Mw Sukari solar plant, while the paste plant build remained on track for commissioning in the first half of 2024.

Full-year capital expenditure totalled $224.3m, including the underground transition to owner-operator, the accelerated open pit waste stripping campaign, and Sukari mining concession exploration.

Centamin said its geological focus delivered a second year of reserve growth at Sukari, with total measured and indicated mineral resources of 320 million tonnes at 1.08 grams of gold per tonne for 11.11 million ounces of contained gold, reflecting a 13% increase in ounces after depletion.

That included proven and probable reserves of 163 million tonnes at 1.1 grams of gold per tonne for six million tonnes per ounces, reflecting additions of 0.8 million ounces in the open pit and underground before depletion.

The board noted the confirmed underground expansion potential for Sukari, increasing underground ore mining rates to 1.5 million tonnes, which would be more than 30% above the current life-of-mine averages, driving future production growth from the mine.

Centamin also upgraded the Doropo resource, with a total indicated resource of 51.2 million tonnes at 1.52 grams of gold per tonne for 2.52 million ounces of contained gold, including a 22% increase in grade and “significant” exploration upside potential.

The board said the Doropo pre-feasibility study was “well-progressed”, adding that more work was underway on the processing circuit assessing potential capital and operating cost savings.

Completion of the pre-feasibility study was expected in the first half of this year.

The company secured a $150m sustainability-linked revolving credit facility in the year, which the board said would provide it with “greater financial capacity and flexibility” to fund identified growth and enhancement opportunities across its portfolio.

It said the sustainability targets would track tangible progress in reducing Centamin’s environmental footprint, and strengthening its social licence to operate.

Finally, the directors described a “robust” balance sheet, with cash and liquid assets totalling $156.6m as at 31 December.

“The fourth quarter performance represented a successful conclusion to the year,” said chief executive officer Martin Horgan.

“Our operating team delivered on our 2022 guidance for both ounces and costs at Sukari, despite the impact of industry-wide inflationary pressures.

“Even more importantly, we are proud to report a new safety record of over eight million hours worked without a lost time injury reflecting our focus on safety across the company.”

Horgan described the fourth quarter as “busy”, as the company commissioned the 36MW Sukari solar plant, delivering immediate cost savings and reductions in carbon emissions.

“During 2023, we look forward to further increasing gold production from Sukari year-on-year while continuing to manage cost pressures, and progressing the multiple identified opportunities across our portfolio.”

Centamin said it would publish its audited full-year results for 2022 on 16 March.

At 1223 GMT, shares in Centamin were down 3.73% at 112.4p.

Reporting by Josh White for Sharecast.com.