Centamin EBITDA up 26% in H1, shares advance – Resource World Magazine – Nokturnal

Centamin PLC [CEE-TSX; CEY-LON] on Wednesday announced its interim results for the first half of 2023, and said it is on track to meet its production targets for the year.

The company said it produced 200,561 ounces of gold from its Sukari mine in Egypt in the first six months of 2023, putting it in a good position to meet yearly guidance of between 450,000 and 480,000 ounces.

Operational highlights in the first half included all-in-sustaining costs (AISC) of US$1,228 per ounce.

In its first half results statement Centamin noted that earnings before interest tax depreciation and amortization (EBITDA) increased by 26% year-on-year to $193 million, resulting in earnings per share of $0.78 and net profit after tax attributable to shareholders of $91 million.

“This marks Centamin’s third consecutive six-month period of improved EBITDA, driven by our focus on operating performance and cost management, whilst also benefiting from an improved gold price,” said Centamin CEO Martin Horgan.

Centamin shares advanced on the news, rising 3.7% or $0.06 to $1.67. The shares are currently trading in a 52-week range of $2.05 and $1.16.

Centamin Plc is a mineral exploration and development mining company with a dual listing on the London and Toronto stock exchanges.

Centamin’s principal asset, the Sukari Gold Mine, is located in Egypt. It began production in 2009 and is the first large scale modern mine in Egypt. Base case production is 500,000 ounces per year, with the potential to exceed this level as optimisation of the mining and processing operations continues.

The company previously said it hoped to achieve “first mover advantage in Egypt” through a two-year exploration program with targets generated across 3,000 square kilometres of exploration ground in Egypt’s highly prospective Arabian Nubian Shield.

The company’s other key asset is the Doropo Project, which is located in northeast Cote d’Ivoire between Comoe National Park and the international border with Burkina Faso, 480 kilometres north of the capital, Abidjan and 50 kilometres north of the city of Bouna.

The Doropo Project covers 13 deposits over an area of 1,874 square kilometres.

On Wednesday, Horgan said the company’s operational track record and strong balance sheet put Centamin in a robust position to deliver the next stage of growth, including further optimisation at Sukari and continued development of the Doropo project.

Centamin recently said it will conduct a definitive feasibility study at Doropo after a pre-feasibility study showed “an economically robust project.’’

The pre-feasibility study estimated average production of 173,000 ounces annually during a 10-year mine life. The construction capital expenditure is estimated at $349 million, including a 10% contingency, with a 2.3-year payback period at a gold price of US$1,600 an ounce.