Centamin ('Centamin' or 'the Company') (LSE:CEY)(TSX:CEE) is pleased to provide the outcomes of the pre-feasibility study ('PFS') at its Doropo Gold Project ('Doropo') located in north-eastern Cote d'Ivoire, including maiden Mineral Reserves estimate, detailed project parameters and economics, with identified upside opportunities for evaluation during the definitive feasibility study ('DFS').
MARTIN HORGAN, CEO, commented: 'The results from the Doropo PFS demonstrate an economically robust project that meets Centamin's hurdle rates to proceed with a definitive feasibility study. A life of mine average production rate of approximately 175kozpa at US$1,000/oz AISC over 10 years delivering an IRR of 26% at a gold price of US$1,600/oz in a well-established mining jurisdiction represents an excellent outcome. We have identified opportunities to further optimise the project which will be assessed as part of the DFS which is scheduled for completion in mid-2024. A substantial part of the DFS fieldwork has already been completed in 2023 which derisks the timeline to completion and further confirms our faith in the potential of Doropo to support a commercially viable project which will bring significant investment and job creation to northeastern Cote d'Ivoire.'
HIGHLIGHTS[1]
Maiden Mineral Reserve Estimate of 1.87 million ounces ('Moz') of Probable Mineral Reserves, at an average grade of 1.44 grams per tonne of gold ('g/t Au'), supporting a 10-year life of mine ('LOM')
Average annual gold production of 173koz over the LOM, with an average of 210koz in the first five years
All-in sustaining costs ('AISC') of US$1,017 per ounce ('/oz') sold over the LOM, with an average AISC of US$963/oz for the first five years
The mine plan assumes conventional open pit mining of a sequence of shallow pits
Mineral processing via a 4.0 to 5.5 million tonnes per annum ('Mtpa') semi-autogenous grinding ('SAG') mill, ball mill and crusher ('SABC') circuit, and conventional carbon-in-leach ('CIL') circuit for an average LOM gold metallurgical recovery rate of 92%
Total construction capital expenditure ('capex') of US$349 million, inclusive of a 10% contingency, with a 2.3 year payback[2] at a US$1,600/oz gold price
Robust economics with a post-tax net present value of US$330 million and internal rate of return ('IRR') of 26%, using 5% discount rate ('NPV5%') and US$1,600/oz gold price
Definitive feasibility study ('DFS') and environmental and social impact assessment ('ESIA') completion expected in H1 2024 ahead of mining license submission deadline
Upside opportunities identified for potential resource and reserve growth and improvements to capital and operating expenditure estimates
The Company will host a webcast presentation of the Doropo project with the interim financial results on Wednesday, 26 July at 08.30 BST (UK time)
Link to print-friendly version of the announcement including PFS cash flow summary table
PRE-FEASIBILITY STUDY SUMMARY
WEBCAST PRESENTATION
The Company will host a webcast presentation with the interim results on Wednesday, 26 July 2023 at 08.30 BST to discuss the results and Doropo Gold Project, followed by an opportunity to ask questions.
PRINT-FRIENDLY VERSION of the announcement: www.centamin.com/media/companynews.
DOROPO GOLD PROJECT PRE-FEASIBILITY STUDY
OVERVIEW
The Doropo Gold Project is in the northeast of Cote d'Ivoire, situated in the north-eastern Bounkani region between the Comoe National Park and the international border with Burkina Faso, 480km north of the capital Abidjan and 50km north of the city of Bouna.
The license holding is currently 1,847 km2 and covers thirteen gold deposits, named Souwa, Nokpa, Chegue Main, Chegue South, Tchouahinin, Kekeda, Han, Enioda, Hinda, Nare, Kilosegui, Attire and Vako. Approximately 85% of the gold deposits are concentrated within a 7km radius ('Main Resource Cluster'), with Vako and Kilosegui deposits located within an approximate 15km and 30km radius, respectively.
Geologically, Doropo lies entirely within the Tonalite-Trondhjemite-Granodiorite domain, bounded on the eastern side by the Boromo-Batie greenstone belt, in Burkina Faso, and by the Tehini-Hounde greenstone belt on the west.
MINERAL RESOURCES AND RESERVES
The PFS is based on the 2022 Mineral Resource Estimate for Doropo published in November 2022 (link to regulatory announcement here). The maiden Mineral Reserve estimate has converted 74% of Mineral Resource ounces to Mineral Reserves.
There is potential for additional resource conversion and further resource growth. Several exploration targets have been identified across the license holding which have the potential to increase the resource and reserve base.
ABOUT CENTAMIN
Centamin is an established gold producer, with premium listings on the London Stock Exchange and Toronto Stock Exchange. The Company's flagship asset is the Sukari Gold Mine ('Sukari'), Egypt's largest and first modern gold mine, as well as one of the world's largest producing mines. Since production began in 2009 Sukari has produced over 5 million ounces of gold, and today has 6.0Moz in gold Mineral Reserves. Through its large portfolio of exploration assets in Egypt and Cote d'Ivoire, Centamin is advancing an active pipeline of future growth prospects, including the Doropo project in Cote d'Ivoire, and has over 3,000km2 of highly prospective exploration ground in Egypt's Nubian Shield.
Centamin recognises its responsibility to deliver operational and financial performance and create lasting mutual benefit for all stakeholders through good corporate citizenship, including but not limited to in 2022, achieving new safety records; commissioning of the largest hybrid solar farm for a gold mine; sustaining a +95% Egyptian workforce and, a +60% Egyptian supply chain at Sukari.
Contact:
Email: investor@centaminplc.com
FORWARD-LOOKING STATEMENTS
This announcement (including information incorporated by reference) contains 'forward-looking statements' and 'forward-looking information' under applicable securities laws (collectively, 'forward-looking statements'), including statements with respect to future financial or operating performance. Such statements include 'future-oriented financial information' or 'financial outlook' with respect to prospective financial performance, financial position, EBITDA, cash flows and other financial metrics that are based on assumptions about future economic conditions and courses of action. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as 'believes', 'expects', 'expected', 'budgeted', 'forecasts' and 'anticipates' and include production outlook, operating schedules, production profiles, expansion and expansion plans, efficiency gains, production and cost guidance, capital expenditure outlook, exploration spend and other mine plans. Although Centamin believes that the expectations reflected in such forward-looking statements are reasonable, Centamin can give no assurance that such expectations will prove to be correct. Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Centamin about future events and are therefore subject to known and unknown risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. In addition, there are a number of factors that could cause actual results, performance, achievements or developments to differ materially from those expressed or implied by such forward-looking statements; the risks and uncertainties associated with direct or indirect impacts of COVID-19 or other pandemic, general business, economic, competitive, political and social uncertainties; the results of exploration activities and feasibility studies; assumptions in economic evaluations which prove to be inaccurate; currency fluctuations; changes in project parameters; future prices of gold and other metals; possible variations of ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; climatic conditions; political instability; decisions and regulatory changes enacted by governmental authorities; delays in obtaining approvals or financing or completing development or construction activities and discovery of archaeological ruins. Financial outlook and future-ordinated financial information contained in this news release is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that any such financial outlook or future-ordinated financial information contained or referenced herein may not be appropriate and should not be used for purposes other than those for which it is disclosed herein. The Company and its management believe that the prospective financial information has been prepared on a reasonable basis, reflecting management's best estimates and judgments at the date hereof, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information or statements, particularly in light of the current economic climate and the significant volatility, the risks and uncertainties associated with the direct and indirect impacts of COVID-19. Forward-looking statements contained herein are made as of the date of this announcement and the Company disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.
CENTAMIN PLC 
