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Centamin cuts 2020 guidance on safety grounds

Gold miner says area of openpit Sukari mine not safe to operate in and drops forecast production for 2020 by at least 13 per cent
Centamin cuts 2020 guidance on safety grounds

Centamin (CEY) will produce more than 50,000 ounces (oz) gold less than expected this year after a section of the Sukari mine in Egypt became unsafe to mine. 

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The company said there had been “movement in a localised area” of the pit wall and has deferred work in this area as a result. Centamin’s share price fell by almost a fifth in early trading. 

Guidance has been dropped to around 445,000oz for the year, down from 510,000-525,000oz. The company said mining from the unstable high-grade area would be replaced with stockpile ore, which contains much less gold. 

The question is whether the area of the “movement” will be able to mined later on, which Centamin said would be determined in a new geotechnical study of the area.