ACCESSWIRE - Tue Jan 19, 1:00AM CST
QUARTERLY REPORT
for the three months ended 31 December 2020
PERTH, AUSTRALIA / ACCESSWIRE / January 19, 2021 / MARTIN HORGAN, CEO, commented : "Today's Q4 and subsequent full year 2020 results were delivered in-line with the revised guidance we issued in October. This follows the capital markets event we hosted in December, where we presented the conclusions of the Phase 1 Life of Asset review and three-year outlook, detailing clear cost-saving, exploration and productivity initiatives, forming part of our plans to unlock Sukari's potential."
HIGHLIGHTS [1]
Q4 and FY results delivered in line with guidance
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Gold production from the Sukari Gold Mine ("Sukari") for the fourth quarter ("Q4"), was 67,996 ounces ("oz"), which is in-line with the quarterly guidance range of 60,000 to 70,000 oz; Gold production for 2020 ("FY") was 452,320 oz and in-line with annual production guidance of 445,000 to 455,000 oz
· Q4 revenue of US$150 million, generated from gold sales of 79,535 oz at an average realised gold price of US$1,887/oz sold; FY revenue of US$829 million, generated from gold sales of 468,681 oz at an average realised gold price of US$1,766/oz
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Q4 cash costs of US$1,080/oz produced, outside of the quarterly guidance of US$950-1,050/oz produced, and all-in sustaining costs ("AISC") of US$1,613/oz sold, in-line with quarterly guidance range of US$1,450-1,650/oz sold; FY cash costs of US$719/oz produced, delivered below the annual guidance of US$740-790/oz produced, and AISC of US$1,036/oz, which was in-line with annual guidance range of US$950-1,050/oz sold
· Q4 adjusted Group free cash flow of US$3 million, after US$48 million of capital expenditure and US$21 million distributed to the Egyptian government in profit share payments and royalties [2] ; FY adjusted Group free cash flow of US$142 million, after US$138 million of capital expenditure and US$199 million was distributed to the Egyptian government in profit share payments and royalties
· In December 2020, the Company contracted Capital Ltd ("Capital") to complete a 120Mt waste-stripping programme over four years. Capital are well progressed with the mobilisation of their fleet and team on site and are on track to commence material movement in H1 2021
| | | | QoQ comparative | YoY comparative | | YoY comparative |
| | Q4 2020 | Q3 2020 | % | Q4 2019 | % | | FY 2020 | FY 2019 | % |
| Open pit | | | | | | | | | |
| Total material mined (kt) | 21,324 | 17,682 | 21% | 17,385 | 23% | | 79,774 | 78,391 | 2% |
| Ore mined (kt) | 3,553 | 3,805 | (7%) | 4,006 | (11%) | | 15,656 | 14,372 | 9% |
| Ore grade mined (g/t Au) | 0.74 | 1.01 | (27%) | 0.98 | (24%) | | 0.97 | 0.8 | 21% |
| Underground | | | | | | | | | |
| Ore mined (kt) | 165 | 139 | 19% | 232 | (29%) | | 625 | 1,087 | (43%) |
| Ore grade mined (g/t Au) | 3.66 | 5.38 | (32%) | 6.45 | (43%) | | 4.99 | 5.32 | (6%) |
| Processing | | | | | | | | | |
| Ore processed (kt) | 2,911 | 2,931 | (1%) | 3,044 | (4%) | | 11,913 | 12,859 | (7%) |
| Feed grade (g/t Au) | 0.86 | 1.48 | (42%) | 1.6 | (46%) | | 1.35 | 1.28 | 5% |
| Gold recovery (%) | 88.6 | 87.4 | 1% | 89.5 | (2%) | | 87.8 | 88.1 | 0% |
| Gold production (oz) | 67,996 | 128,240 | (47%) | 148,387 | (54%) | | 452,320 | 480,528 | (6%) |
| Gold sold (oz) | 79,535 | 118,617 | (33%) | 137,065 | (42%) | | 468,681 | 470,020 | 0% |
| Cash costs (US$/oz produced) | 1,080 | 682 | 58% | 605 | 79% | | 719 | 699 | 3% |
| AISC (US$/oz sold) | 1,613 | 961 | 68% | 792 | 104% | | 1,036 | 943 | 10% |
| Avg gold price (US$/oz) | 1,887 | 1,933 | (2%) | 1,487 | 27% | | 1,766 | 1,399 | 26% |
OUTLOOK [4]
Investing for operating reliability and consistency
Guidance unchanged:
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2021 gold production of 400,000 to 430,000 oz, at cash costs of US$800-900/oz produced and AISC of US$1,150-1,250/oz sold
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2021 capital expenditure ("capex") is estimated at US$225 million, including investment to improve mining flexibility (increased open pit stripping programme and increased underground development) and identified growth projects
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Sukari Life of Asset review ("LOA") Phase 2 is underway and will result in an updated life of mine plan in Q4 2021
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The West African portfolio review will be completed in H1 2021, including updated mineral resource estimates.
CONFERENCE CALL
The Company will host a conference call today, Tuesday, 19 January at 08.30 GMT (UK time) to discuss the results with investors and analysts, followed by an opportunity to ask questions. Please find below the required participation details for the call. A replay will be made available on the Company website.
Dial-in telephone numbers:
United Kingdom (and all other locations) +44 (0) 203 936 2999
United States +1 646 664 1960
South Africa +27 (0)87 550 8441
Participation access code: 732502
FOR MORE INFORMATION please visit the website www.centamin.com or contact: