Centamin builds gold output

Centamin Egypt reduced pre-tax losses to $0.5m (£0.3m) in the six months to 31 December 2009 compared with $24.4m a year earlier as gold production continues to build at its Sukari mine. The company is producing around 4,000 to 5,000 ounces of gold a week (annualised 200,000 ounces), with recoveries running at some 90 per cent, and operations are now cash flow positive. Bank of America Merrill Lynch believes Sukari output could eventually reach 700,000 ounces per year based on the mine design capacity.

Meanwhile, work continues on the underground operations that could lift the annualised output rate to over 300,000 ounces next year. With its higher ore grade, underground mining will also reduce overall cash costs.