UK owner ramps up output at Egypt’s largest gold mine

Centamin

London Stock Exchange-listed Centamin expects annual gold production of between 470,000 and 500,000 ounces in 2024 from its flagship Sukari gold mine in Egypt.

The annual output stood at 450,000 ounces in 2023.

The company, which is based in Jersey and listed on the London and Toronto stock exchanges, reported that total revenue reached $892 million last year, generated from sales of 456,625 ounces at an average price of $1,948 per ounce. The fourth quarter alone contributed $265 million. 

• Egypt and Turkey among top gold buyers
• Egypt finalises mining terms with UK and Canadian firms
• Egypt set to issue tenders for precious metal mining

“We look forward to 2024, guiding for another increase in annual gold production,” said Centamin CEO Martin Horgan.

“Combined with our disciplined approach to managing operating costs, we are extremely well-positioned to benefit from the current strong gold price environment as we complete our capex reinvestment programme and connect Sukari (50 megawatts) to the Egyptian national grid.”

Horgan added that the company’s strategic focus remains on growth as it continues to define and convert resources to reserves at Sukari mine.

Sukari gold mine produced 128,127 ounces in the fourth quarter of 2023, a 17 percent increase year on year, mainly driven by an increased contribution from underground ore mined and high-grade ore stockpiled from the previous quarter.

During the last quarter, the plant processed 3.2 metric tonnes of ore, a five percent increase year on year. The metallurgical gold recovery rate was 89.1 percent for the quarter, above budget, driven by higher grades, usage of new reagents and improved comminution control.

The Sukari gold mine is Egypt’s largest and one of the world’s largest producing mines. Since production began in 2009, the mine has produced over five million ounces of gold and is expected to continue producing until 2035.

Centamin will focus on completing its maiden drill programme at the Eastern Desert Exploration (EDX) site adjacent to the Sukari mining concession. 

In 2024, the budgeted exploration spend allocated is $23 million, including $9 million for EDX exploration.