CEY Centamin Plc

 

TIDMCEY 
 
RNS Number : 5491S 
Centamin Egypt Limited 
13 September 2010 
 

 
 
 
 
 
 
 
+---------------------------------+---------------------------------+ 
| For Immediate Release           |               13 September 2010 | 
+---------------------------------+---------------------------------+ 
 
              Centamin Egypt Limited ("Centamin" or "the Company") 
                              (LSE: CEY, TSX:CEE) 
 
 
 
PRODUCTION UPDATE 
 
Centamin, the gold mining group with operations in Egypt, announces a downward 
revision to its 2010 guidance. The Company now expects gold production for 2010 
to be in the range of 160-170,000 ounces of gold, due to the following 
combination of factors: 
 
v In the process plant, intermittent SAG mill liner and lifter failures have 
continued throughout the quarter impacting steady state production. The Company 
remains on track to change the polymetallic liner and lifter system to steel in 
October. 
 
v Initial grade reconciliations against the original reserve model in the 
sulphide ore are indicating 10% higher ore tonnes however at 10% lower grade. 
Whilst overall resource and reserve ounces remain intact, in the short term this 
has reduced expected gold production.  An updated pit optimisation is currently 
nearing completion using a slightly revised resource model developed by 
consultants, Hellman and Schofield. 
 
v Whilst the supply of additional air and hydrogen peroxide into the flotation 
and leach circuits has been successful in increasing metallurgical recoveries to 
design level of 90%, the implementation of these measures on a consistent and 
controlled basis is taking longer than anticipated and, as such, recoveries have 
been marginally lower. 
 
v The reduction in production will have an expected commensurate increase in 
cash cost per ounce particularly in the current (3rd) quarter. However unit 
costs remain in line with management forecasts and the Company remains confident 
of returning a total cost of around $400 per ounce in the final quarter of 2010. 
 
v The Company's expansion projects remain on schedule and budget and the target 
for a 500,000 oz production rate in 2012 remains unchanged. 
 
Commenting on the revision, Josef El-Raghy, Chairman of Centamin, said: 
 
"The short term impediments to production performance highlighted above are well 
understood and are being progressively removed or resolved. Further adjustments 
to the production plant will be made throughout September, and we believe that 
the final quarter of 2010 will provide a more accurate demonstration of the 
normalised run rate of Sukari". 
 
 
For Centamin Egypt Limited 
 
 
 
 
Josef El-Raghy 
Chairman 
13 September 2010 
 
 
For more information please contact: 
 
+------------------------------+-----------------------------------+ 
| Centamin Egypt Limited       |   Buchanan Communications Limited | 
| + 203 5411 259 or + 61 8     |             + 44 (0) 207 466 5000 | 
| 9316 2640                    |                       Bobby Morse | 
| Josef El-Raghy               |                 Katharine Sutton  | 
| www.centamin.com             |                                   | 
+------------------------------+-----------------------------------+ 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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