TIDMCEY
RNS Number : 6005T
Centamin PLC
09 January 2017
For immediate 9th January 2017
release
Centamin plc ("Centamin" or "the Company")
(LSE:CEY, TSX:CEE)
Q4 2016 Preliminary Production Results, 2017 Production Guidance
and Dividend Policy Update
Centamin announces preliminary production results for the
quarter ended 31 December 2016 from its Sukari Gold Mine ("Sukari")
in Egypt.
Preliminary total gold production for the quarter was 136,787
ounces, an 8% decrease on the previous quarter and a 16% increase
on Q4 2015. This brings full year production to 551,036 ounces, a
25% increase on 2015 and above the guidance range of between
520,000 and 540,000 ounces.
Quarterly throughput at the process plant was 2,948kt, a 5%
increase on the previous quarter.
Open pit total material movement (ore plus waste) decreased 2%
on the previous quarter to 15,811kt. Open pit ore production
decreased by 25% to 2,183kt at an average mined grade of 0.84g/t.
The average head grade to the plant from the open pit was 0.85g/t.
The run of mine ore stockpile balance decreased by 592kt to 577kt
at the end of the period.
The underground operation delivered 228kt of ore, 10% less than
the previous quarter, at an average mined grade of 10.43g/t. Ore
from stoping was 125kt at 10.01g/t and ore from development was
103kt at 10.94g/t.
Q4 2016 (preliminary) Q3 2016 Q4 2015
---------------------------- ---------------------- -------- --------
Open Pit - Total Material
Movement (kt) 15,811 16,191 13,754
---------------------------- ---------------------- -------- --------
Open Pit - Ore Production
(kt) 2,183 2,936 2,229
---------------------------- ---------------------- -------- --------
Underground Ore Production
(kt) 228 255 300
---------------------------- ---------------------- -------- --------
Process Plant Throughput
(kt) 2,948 2,806 2,758
---------------------------- ---------------------- -------- --------
Process Plant Productivity
(tph) 1,415 1,437 1,345
---------------------------- ---------------------- -------- --------
Gold Produced (oz) 136,787 148,674 117,644
---------------------------- ---------------------- -------- --------
Forecast production for 2017 from the Sukari Gold Mine is
540,000 ounces at a cash operating cost of US$580 per ounce and
all-in-sustaining cost (AISC) of US$790 per ounce. This guidance is
based on a plant throughput of 11.75Mt and approximately 1Mt of
underground ore mined at a grade of 7.26g/t. During Q1 2017 the
open pit is scheduled to develop a low grade east wall cutback and
planned gold production will be lower than Q4 2016. With ongoing
optimisation, there remains scope for further increases in
productivity and production growth.
Centamin's full year results for 2016 are due to be released on
1 February 2017, at which time the Board of Directors expect to
propose a final dividend for 2016. Furthermore, due to the strong
financial position of the Company and the ongoing cash flow
generation from the Sukari Gold Mine, the Board expects the full
year dividend to exceed the maximum provided by the current policy.
Accordingly, the Board has approved an update to the Company's
dividend policy as follows:
The Company's dividend policy sets a minimum payout level
relative to cash flow while considering the financial condition of,
and outlook for, the Company. When determining the amount to be
paid the Board will take into consideration the underlying
profitability of the Company and significant known or expected
funding commitments. Specifically, the Board will aim to approve an
annual dividend of at least 30% of the Company's net cash flow
after sustaining capital costs and following the payment of Profit
Share due to the Government of Egypt.
Andrew Pardey, CEO of Centamin, commented:
"Production of 136,787 ounces from Sukari in the fourth quarter
marked a seventh successive year of growth, with 2016 full year
output of 551,036 ounces exceeding the top end of our revised
annual guidance range. Free cash flow generation from Sukari has
further strengthened Centamin's financial position during 2016, a
trend we expect to continue as we forecast 2017 production of
540,000 ounces at an all-in sustaining cost of US$790 per ounce.
Ongoing optimisation of the processing and mining operations
continues to offer scope for further increases in productivity.
Having considered the Company's financial outlook, as well as
our self-funded and staged approach towards project development,
the Board expects to propose a final 2016 dividend that is above
the level envisaged by our current policy.
We remain committed to our disciplined approach to capital
allocation, as well as the potential for exploration to deliver
significant shareholder value over the long-term. Results from our
programmes in Burkina Faso and Côte d'Ivoire continue to build
momentum and warrant further investment, and we again exit the year
with a robust financial and operating base on which to continue
delivering our growth strategy."
For more information, please contact:
Centamin plc Buchanan
Josef El-Raghy, Chairman Bobby Morse
Andrew Pardey, CEO + 44 (0) 20 7466
Andy Davidson, Head of Investor 5000
Relations
(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 announcement contains ongoing regulated information and
inside information for the purposes of Article 7 of EU Regulation
596/2014.
LEI: 213800PDI9G7OUKLPV84
Company No: 109180
This information is provided by RNS
The company news service from the London Stock Exchange
END
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