JOHANNESBURG (miningweekly.com) – Toronto- and London-listed Centamin on Wednesday reported that the Stage 4 plant expansion of its Sukari gold mine, in Egypt, to ten-million tons a year, remained on track for the bulk of commissioning to start, and be completed, in the second half of 2013.
To date, expenditure was $274.4-million, of the total forecast of $325-million, including contingency, with the remaining balance to continue to be funded from cost recoveries.
The plant expansion programme, which started in 2011, targeted 450 000 oz/y to 500 000 oz/y production from 2015 onward.
During the three months ended March 31, Centamin achieved record production at Sukari of 87 016 oz, up 2% quarter-on-quarter and 77% on the prior-year period.
The company also reported record quarterly earnings before interest, taxes, depreciation and amortisation of $81.7-million, up 6% from that achieved in the fourth quarter of 2012 and 71% on the prior-year period, before exceptional charges.
“Following on from record 2012 financial results, the team at Sukari have delivered a second successive quarter of record gold production, with further improvements across all areas of the operation,” chairperson Josef El-Raghy stated, adding that output remained on target to achieve the 2013 guidance of 320 000 oz.
Meanwhile, Centamin remained debt-free and unhedged, with cash, bullion on hand, gold sales receivables and available-for-sale financial assets of $188.7-million during the period under review.
Drilling continued in the V-Shear and Kurdeman prospects, with Centamin indicating that ongoing drilling to the south of Kurdeman offered the potential to fast-track near-surface, high-grade ore to supplement the existing production.
Initial drilling results at the company’s licence areas, in Ethiopia’s northern Tigray region, confirmed the existence of low-grade mineralisation, with drilling continuing.
Further, Centamin indicated that the diesel fuel oil and concession agreement litigation actions progressed in line with expectations during the quarter. In respect of the concession agreement, the Supreme Administrative Court of Egypt, in March, upheld the company’s application to suspend enforcement of the initial decision until the court is able to rule on the merits of the appeal.