Egypt-focused Centamin (LON: CEY) (TSX: CEE) has unveiled a new, more ambitious mining plan for its Sukari gold mine.
According to the company, the new mine is planned to increase production to an average of 506,000 ounces per year over the next nine years and will have all-in sustaining costs of less than $1,000 per ounce, helping to increase the mine’s total gold production by 5%. of total gold production. 11 years of running life.
Gold production guidance for 2023 remains in the range of 450,000 to 480,000 ounces, targeting the lower end of the range.
The Sukari Gold Mine is currently the largest and first modern gold mine in Egypt and one of the largest producing gold mines in the world. Since production began in 2009, more than 5 million ounces have been produced. gold, with a current expected mine life of 14 years.
The company also announced a connection to Egypt’s electricity grid, which is expected to result in annual cost savings of $41 million based on current diesel prices.
The company will report third-quarter results next Thursday, October 19, 2023.
Centamin said it backed its full-year cost forecast and lowered its production target after lower-than-expected output in the third quarter, while improving the long-term outlook for Egypt’s Sukari gold mine.
The gold miner said on Thursday it expected annual production from the Sukari mine to average 506,000 ounces between 2024-2032 and 475,000 ounces over the life of the mine from 2024-2034.
Sukari has a lifespan (i.e. the time it takes for the ore reserves to be extracted from the mine) until 2034.
At the same time, Centamin expects average all-in sustaining costs (AISC) for the mine to be $922 per ounce of gold, below the $1,000 target threshold and placing Sukari in the lower half of the global cost curve. AISC decreased by 34% compared to 2022.
