By Michael Susin

Centamin backed its targets for 2024, supported by robust gold prices and continued positive momentum for the third quarter to date at its Sukari gold mine in Egypt.

The miner said Tuesday that gold production from the Sukari mine for the two months ended Aug. 31 was 93,278 ounces, and reported gold sales of 102,563 ounces.

The company said cash costs were $715 for each ounce produced, and all-in sustaining costs were $1,290 for each ounce sold.

The trading update for the first two months of the third quarter comes in light of the acquisition of Centamin by AngloGold Ashanti announced today, it said. The full third-quarter results will be released in October, in line with its normal reporting cycle.

"Sukari continues to perform safely and the positive operational momentum achieved during the second quarter has continued into July and August. Strong production and cost discipline has enabled us to benefit from the robust gold price, generating $76 million of free cash flow in the first two months of the third quarter, 77% higher than the $43 million generated in the first half of the year," Chief Executive Martin Horgan said.

Centamin said it continues to expect annual gold production in the range of 470,000 to 500,000 ounces, with production weighted toward the second half. It added that production performance is tracking toward the mid-point of guidance.

Cash costs for the year are guided to be in the range of $700 to $850 for each ounce produced, and adjusted capital expenditure is forecast to be $215 million.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

September 10, 2024 02:51 ET (06:51 GMT)

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