Centamin PLC (LSE:CEY, TSX:CEE, OTC:CELTF) reported an 11% increase in gold production for the second quarter, helped by higher gold grades and said it remains on track to meet its full-year guidance.
Revenue for the second quarter jumped 17% year-on-year to US$207.2mln, generated from gold sales of 111,027 ounces at an average realised gold price of US$1,863 an ounce.
It produced 110,788 ounces of gold from its Sukari mine in Egypt, up from 100,228 ounces in the year-earlier quarter and 19% higher than the first quarter of 2022.
“Sukari delivered the planned increase in production during Q2 2022 and we remain on track to meet full year production and cost guidance,” said chief executive Martin Horgan.
It expects to produce 430,000 to 460,000 ounces for the full year at cash costs of between US$900 and US$1,000 an ounce.
Cash costs fell 2% from the first quarter to US$868 per ounce, although all-in sustaining costs (AISC) climbed 5% to US$1,357 an ounce.
It said it continues to monitor consumables pricing and review opportunities to offset price increases with cost savings initiatives such as its solar power project.
The FTSE-250 company now expects its AISC for 2022 to be at the upper end of its US$1,275-US$1,425 per ounce guidance range as inflationary pressures are anticipated to continue in the second half.
“Q2 2022 was the first full quarter of underground owner operations at Sukari following the transition from contractor operations during Q1 2022 and the Sukari team delivered significant improvements in both productivity and costs,” said Horgan.
“Continued progress was made at our key projects and we remain focussed on cost control across all our operations with a number of initiatives targeting completion in H2 2022 that are expected to partially offset the current inflationary environment.”