TIDMCEY
RNS Number : 0760L
Centamin PLC
07 January 2016
For immediate 7th January 2016
release
Centamin plc ("Centamin" or "the Company")
(LSE:CEY, TSX:CEE)
Q4 2015 Preliminary Production Results and 2016 Production
Guidance
Centamin announces preliminary production results for the
quarter ended 31 December 2015 from its Sukari Gold Mine ("Sukari")
in Egypt.
Preliminary total gold production for the quarter was 117,644
ounces, a 12% increase on the previous quarter and an 8% decrease
on Q4 2014. This brings full year production to 439,072 ounces, a
16% increase on 2014 and within guidance of between 430,000 and
440,000 ounces for 2015.
Open pit total material movement decreased 4% on the previous
quarter to 13,754kt with open pit ore production increasing by 1%
to 2,229kt. The run of mine ore stockpile balance decreased by
328kt to 704kt at the end of the period.
During the quarter an unfortunate incident occurred within the
open pit operation, when a contractor's employee was involved in a
rock collapse whilst relocating a grade control drill rig. The
operator, and sole occupant of the drill rig, was fatally injured
in the incident.
A full review of the relevant operating procedures has been
completed, subsequent to which open pit mining rates have increased
towards target levels.
The underground operation delivered 300kt of ore, a 4% decrease
on Q3 2015.
Quarterly throughput at the process plant was 2,758kt, a 3%
increase on the previous quarter and in line with our target rate
of 11 million tonnes per annum (Mtpa).
Q4 2015 (preliminary) Q3 2015 Q4 2014
---------------------------- ---------------------- -------- --------
Open Pit - Total Material
Movement (kt) 13,754 14,344 13,804
---------------------------- ---------------------- -------- --------
Open Pit - Ore Production
(kt) 2,229 2,204 4,123
---------------------------- ---------------------- -------- --------
Underground Ore Production
(kt) 300 312 284
---------------------------- ---------------------- -------- --------
Process Plant Throughput
(kt) 2,758 2,673 2,597
---------------------------- ---------------------- -------- --------
Process Plant Productivity
(tph) 1,345 1,342 1,330
---------------------------- ---------------------- -------- --------
Gold Produced (oz) 117,644 105,413 128,115
---------------------------- ---------------------- -------- --------
Forecast production for 2016 from the Sukari Gold Mine is
470,000 ounces at a cash operating cost of US$680 per ounce and
all-in-sustaining cost (AISC) of US$900 per ounce. This would
represent a 7% increase on 2015 production and a reduction over
2015 cost guidance of US$700 per ounce cash operating cost and
US$950 per ounce AISC.
Andrew Pardey, CEO of Centamin, commented:
"During the fourth quarter the Sukari operation reached its
target production rate of 450,000 to 500,000 ounces of gold per
annum. This significant milestone provides a solid platform for
additional productivity increases as the various areas of the
expanded Sukari operation continue to be optimised. Full year
production is towards the top end of the revised guidance range for
2015 and we look forward to delivering a seventh successive year of
growth in 2016.
The ramp-up in productivity from the process plant continued and
during the quarter achieved our base case rate of 11Mtpa capacity,
in line with our expectations. The underground operation continued
to deliver production rates in excess of our forecast and with
consistent grades of at least 6g/t. Despite the ongoing weak gold
price environment, we again exit the year with a robust financial
and operating base on which to continue delivering our growth
strategy.
The strong operational performance was, however, overshadowed by
the fatality that occurred within the open pit during the quarter.
We are all deeply saddened by this loss and I wish to express our
sincere condolences to the family and colleagues of the
deceased."
For more information, please contact:
Centamin plc Buchanan
Josef El-Raghy, Chairman Bobby Morse, Robbie
Andrew Pardey, CEO Ceirog-Hughes
Andy Davidson, Head of Investor + 44 (0) 20 7466
Relations 5000
(andy.davidson@centamin.je) +44
(0) 1534 828708
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
There are risks associated with an investment in the shares of
Centamin. Recipients of this presentation should review the risk
factors and other disclosures regarding Centamin contained in the
preliminary prospectus and subsequent annual reports and Management
Discussion and Analysis reports of Centamin that have been filed
with Canadian securities regulators and are available at
www.sedar.com.
This announcement contains "forward-looking information" (or
"forward-looking statements") which may include, but are not
limited to, statements with respect to the future financial or
operating performance of the Company, its subsidiaries and its
projects (including the Sukari Project), the future price of gold,
the estimation of mineral reserves and resources, the realization
of mineral reserve estimates, the timing and amount of estimated
future production, revenues, margins, costs of production, capital,
operating and exploration expenditures, costs and timing of the
development of new deposits, costs and timing of construction,
costs and timing of future exploration, the timing for delivery of
plant and equipment, requirements for additional capital, foreign
exchange risk, government regulation of mining and exploration
operations, environmental risks, reclamation expenses, title
disputes or claims, insurance coverage and the timing and possible
outcome of pending litigation and regulatory matters. Often, but
not always, forward-looking statements can be identified by the use
of words such as "plans", "hopes", "expects", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates", or "believes" or variations (including negative
variations) of such words and phrases, or state that certain
actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved.
Forward-looking information involves and is subject to known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company and/or
its subsidiaries to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking information. Such factors include, among others,
general business, economic, competitive, political and social
uncertainties; the actual results of current exploration activities
and feasibility studies; assumptions in economic evaluations which
prove to be inaccurate; fluctuations in the value of the United
States dollar and the Canadian dollar relative to each other, to
the Australian dollar and to other local currencies in the
jurisdictions in which the Company operates; changes in project
parameters as plans continue to be refined; future prices of gold
and other metals; possible variations of ore grade or recovery
rates; failure of plant, equipment or processes to operate as
anticipated; accidents, labour disputes or slow downs and other
risks of the mining industry; climatic conditions; political
instability, insurrection or war; arbitrary decisions by
governmental authorities; delays in obtaining governmental
approvals or financing or in the completion of development or
construction activities. Discovery of archaeological ruins of
historical value could lead to uncertain delays in the development
of the mine at the Sukari Project.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking information,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended.
Forward-looking information contained herein is made as of the date
of this announcement and the Company disclaims any obligation to
update any forward-looking information, whether as a result of new
information, future events or results or otherwise. There can be no
assurance that forward-looking information or statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such information or
statements. Accordingly, readers should not place undue reliance on
forward-looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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