Gold miner Centamin Egypt confirmed analysts' fears of slow production ramp-up at its Sukari project when it announced gold production of just 1,118 ounces for the quarter to 31 December 2009. But slower-than-planned initial production growth is the norm in the mining industry and the company has reiterated its target to produce a substantial 200,000 ounces of gold in the current calendar year. The company has now completed stage one of its commissioning and the processing plant is performing in accordance with design specifications.
Centamin is also progressing the underground mine at Sukari. By accessing higher grade (five to 10 grammes per tonne of gold) ore than the current surface mining operations (two grammes per tonne of gold), underground mining should further boost production and could ultimately add another 100,000 ounces a year of gold.
What we said:
When: 22/05/09
Price: 82p
