JOHANNESBURG (miningweekly.com) – Following a strong performance in the first half of this year, gold miner Centamin has raised its production guidance for the full year to between 520 000 oz and 540 000 oz, compared with the previously anticipated 470 000 oz.

Cash cost of production for the full year is also expected to be lower, at between $530/oz and $550/oz, compared with the previously expected $680/oz, while all-in sustaining costs (AISC) are expected to be between $720/oz and $750/oz, compared with the previously guided $900/oz.

“The Sukari operation has continued to build on the strong start to the year, with total first-half production of 265 574 oz of gold. The continued optimisation of the processing operation saw plant throughput increase further during the second quarter, remaining above our base case forecast rate of 11-million tonnes a year.

“The openpit delivered an increase in ore material movement and the underground mine continued to deliver both tonnes and grade in excess of our base case forecast,” CEO Andrew Pardey said on Wednesday.

The LSE- and TSX-listed company’s Sukari mine produced 140 306 oz of gold in the second quarter of the year, up 12% on that produced in the first quarter and 30% higher than that produced in the second quarter of 2015, as the Sukari process plant achieved higher throughput rates, higher grades and improved metallurgical recoveries.

A reduction in the unit cash cost of production from $603/oz in the first quarter to $461/oz in the second quarter, was primarily driven by higher gold output and a 5% decrease in mine production costs to $67.8-million. 
 

Sukari's solid cash flow margins were also highlighted by an $89/oz quarterly reduction in AISC to $669/oz.

Higher realised gold prices and higher gold sales, together with improved operational efficiencies and lower costs, pushed Centamin’s earnings before interest, taxes, depreciation and amortisation to $101.6-million for the second quarter, up 51% on the $67.48-million achieved in the first quarter and up 172% on the $37.3-million achieved in the second quarter of 2015.

“With gold output now established at target levels for the expanded Sukari operation, we remain focused on realising further increases in productivity and cost efficiencies,” said Pardy.