Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Centamin Aims to Increase Annual Gold Output to 500,000 Ounces at Egypt's Sukari Mine

Gold Prices

Thu 21 Mar 2024 | 11:19 PM
Waleed Farouk

Centamin, a leading gold mining company, has set an ambitious target to ramp up its annual gold production to 500,000 ounces at the Sukari Mine, positioned as part of its long-term strategy following the completion of this year's reinvestment program. The company reported a significant cash contribution from the Sukari Mine of $121 million for the year 2023, with the Egyptian government receiving around $139 million in profits and royalties in the same period.

The company, which is listed on the London and Toronto stock exchanges, experienced a notable 25% increase in its adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in 2023, reaching $398 million, according to reports by the Arab World News Agency.

Centamin's forecasts for the Sukari Mine remain optimistic, with expected gold production to oscillate between 470,000 and 500,000 ounces annually. Since starting operations in 2009, the mine has already produced approximately 5.7 million ounces of gold.

In addition to the operations at Sukari, Centamin's exploration efforts in Egypt's Eastern Desert have yielded promising results. The company's exploratory drilling in eight areas near Sukari has identified two potential commercial mining zones, namely Little Sukari and Um Majal, early this year.

Centamin has announced plans to build on this success with continued exploration in the Nugrus area, focusing on these promising sites throughout the current year.

Looking ahead, Centamin is also advancing exploration in the Am Rus and Nagd areas, with potential drilling targets that could be explored towards the end of 2024 to 2025, depending on the success of initial results.

The expansion of Centamin's exploration footprint in 2021, securing 19 new licenses covering over 3,000 square kilometers in Egypt's Eastern Desert, highlights the company's commitment to enhancing its gold production capacity and contributing significantly to the development of Egypt's mining sector.