Centamin hits gold targets at Sukari, but marred by fatality

7th Jan 2016 07:44

(ShareCast News) - Gold-mining company Centamin has produced a set of mostly positive production results for the fourth quarter at its Sukari Mine in Egypt.The FTSE 250 company said on Thursday that total gold production for the quarter was 117,644 ounces, up 12% on the previous quarter but an 8% drop in the same period in 2014.It brought full year production to 439,072 ounces, within the guidance of between 430,000 and 440,000 ounces for the year and a 16% increase on 2014.The fourth quarter's open pit total material movement was relatively flat on the previous year at 13,754kt, while open pit ore production plunged 46%to 2,229kt. The run of mine ore stockpile balance decreased by 328kt to 704kt at the end of the period.However the results were marred by news of a fatal incident in the open pit operation during the period, when a contractor's employee was involved in a rock collapse while relocating a grade control drill rig.The company said a full review of the relevant operating procedures has been completed.Centamin said forecast production for 2016 from the mine is 470,000 ounces - a 7% increase of 2015's production levels.That comes at a cash operating cost of $680 per ounce and all-in-sustaining cost of $900 per ounce, less than last year.Chief executive Andrew Pardey said full year production is towards the top end of the revised guidance range for the year."This significant milestone provides a solid platform for additional productivity increases as the various areas of the expanded Sukari operation continue to be optimised," he said."The strong operational performance was, however, overshadowed by the fatality that occurred within the open pit during the quarter."We are all deeply saddened by this loss and I wish to express our sincere condolences to the family and colleagues of the deceased."