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Centamin reports gold production decline in Q2, says on track to meet 2021 guidance

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(Kitco News) - Centamin (TSX: CEE) announced today that gold production at its Sukari mine in Egypt was 100,228 oz in Q2 2021, a 23% decline over Q2 2020 (130,994 oz), bringing production for the first half of the year ("H1") to 204,275 oz, which is in line with the budget.

Gold sales for the quarter were in line with budget at 97,229oz (H1: 203,802 oz), a 9% decrease QoQ. The average realised gold price for the quarter was US$1,822/oz (H1: US$1,799/oz), up 2% QoQ. Revenues generated of US$177.5 million (H1: US$367.4m), were down 7% QoQ, driven by scheduled lower gold sales and offset by a higher realised gold price.

Total all-in sustaining costs ("AISC") were better than budget at US$125.4 million for the quarter (H1: US$241.7m), due to certain non-critical sustaining capital items moving from Q2 to Q3. This marked an 8% increase QoQ. Unit AISC of US$1,290/oz sold (H1: US$1,186/oz), an 18% increase QoQ, reflecting the increased tonnes mined and lower gold sales.

The company said it is on track to meet full year production guidance of 400,000 to 430,000 oz of gold at cash costs of US$800-900/oz produced and AISC of US$1,150-1,250/oz sold.

CEO Martin Horgan commented, "Centamin has delivered another solid operational performance and we remain on track to meet full year cost and production guidance. During the quarter, excellent progress was made with the Sukari waste-stripping programme which has significantly outperformed budget and resulted in record material mined. We look forward to announcing our detailed half-year financials and declaring the interim dividend on Thursday 5th August."

The company said it is in a strong financial position, building net cash and liquid assets to US$312.1 million as at 30 June 2021, and after distribution of the 2020 final dividend totalling US$34.5 million. The company added it remains unhedged and debt-free.

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