Gold Production: 131,000 ounces produced in the quarter. Gold Sales: Just under 150,000 ounces sold. Cash Costs: $766 per ounce. All-In Sustaining Cost: Just over $250 per ounce. Revenue: $369 million generated in the period. Free Cash Flow: $103 million, a 730% increase year on year and nearly 220% increase quarter on quarter. Cash and Liquids: Just over $240 million. Gold Recovery Rate: Over 89%, a 1% increase year on year. Average Grade: 1.43 g per ton, a 14% increase year on year. Processing Volume: 3 million tonnes, an 8% increase year on year.

Warning! GuruFocus has detected 6 Warning Signs with CELTF.

Release Date: October 17, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Centamin PLC (CELTF) produced 131,000 ounces of gold in Q3, with sales of nearly 150,000 ounces due to timing from Q2. The company maintained strong cost control with cash costs of $766 per ounce and an all-in sustaining cost of just over $250 per ounce. Revenue for the quarter was $369 million, with a significant increase in free cash flow to $103 million, marking a 730% year-on-year increase. Centamin PLC (CELTF) has a robust balance sheet with over $240 million in cash and liquid assets. The company is on track to meet its production and cost guidance for the year, with continued momentum expected into Q4.

Negative Points

The company reported a couple of Lost Time Injuries (LTIs) during the quarter, highlighting safety concerns. There are ongoing restrictions on discussing certain details due to the UK takeover code related to the Anglo Gold transaction. The company is still awaiting finalization of government engagement and permitting processes in West Africa. Despite strong performance, there is uncertainty surrounding the future structure of the company due to the proposed acquisition by Anglo Gold. The company faces challenges in maintaining operational safety, with a group Lost Time Injury Frequency Rate (LTIFR) of 0.65 per million hours worked.

Q & A Highlights

Q: Can you provide an update on the Anglo Gold transaction and any restrictions on what can be discussed? A: Michael Stoner, Head of Corporate, mentioned that due to the UK takeover code, there are restrictions on discussing details beyond what is disclosed in the 2.7 announcement and the scheme document. The focus should remain on the operating performance for the quarter.

Q: How did Centamin perform in terms of production and cost control during Q3 2024? A: Martin Horgan, CEO, reported a strong performance with 131,000 ounces produced and sales of just under 150,000 ounces. Cash costs were $766 per ounce, and all-in sustaining costs were just over $250 per ounce. This performance allowed Centamin to maintain its production guidance and benefit from strong gold prices, generating $369 million in revenue and $103 million in free cash flow.



Q: What are the safety performance metrics for the quarter? A: Martin Horgan noted two lost time injuries (LTIs) during the quarter, one at the Sukari mine and another at the EDX exploration site in Egypt. The group LTIFR was 0.65 per million hours worked, with a total recordable injury rate of 1.96 per million hours. Safety remains a key focus with proactive measures being implemented.

Q: What progress has been made in the Sukari and West Africa projects? A: Martin Horgan highlighted the completion of the capital earthmoving project at Sukari and ongoing underground development. In West Africa, Centamin continues to engage with the government on permitting and mining license applications, with hopes to finalize by year-end. Engineering and community engagement efforts are ongoing.

Q: Were there any questions from the conference line or webcast? A: Michael Stoner confirmed that there were no questions from the conference line or webcast, leading to Martin Horgan's closing comments.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.