Centamin PLC (TSX:CEE, LSE:CEY, OTC:CELTF) expects to produce up to 500,000 ounces of gold in 2024 from its flagship Sukari mine in Egypt, the company said as it unveiled its three-year outlook ahead of an investor presentation today.
"Today marks significant progress against our Sukari reset plans,” said chief executive Martin Horgan. “The transformed approach to the management of Centamin has delivered excellent results including a net 1.1 million ounce mineral reserve growth at Sukari - representing the largest reserve increase in 10 years.”
The gold producer delivered mineral reserve growth in excess of one million ounces net of six months mining depletion, representing a 23% increase in Sukari proven and probable reserves. The growth was helped by a 200% jump in underground proven and probable reserves at Sukari.
“Within our Sukari 300,000 metre budgeted drill programme for 2022, we have an active pipeline of identified resource conversion and extensional drill targets which gives us significant confidence in continuing to grow this world class asset,” said Horgan.
“Our improved geological model underpins our new robust 12+ year mine schedule and from this we have identified a clear roadmap to consistently producing greater than 500,000 ounces per annum from the Sukari gold mine over the next decade."
It expects to produce between 430,000 and 460,000 ounces of gold next year, rising to 450,000-475,000 in 2023 and 450,000-500,000 in 2024.
Further upside drivers yet to be modelled, include the emergence of 'bonanza' high grade structures within the open pit and underground, it noted.
Centamin also increased US$100mln cost savings programme to US$150mln, to be delivered by 2024.