Centamin (CEY) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw strong operational and financial performance, with gold production momentum and cost discipline driving significant increases in free cash flow and earnings.

• Gold production reached 657koz for the group and 131,726 oz at Sukari, with notable year-over-year gains at several sites.

• The AngloGold Ashanti acquisition offer was announced, impacting disclosure and marking a potential final quarterly report for Centamin.

• Progress continued on organic growth projects, including Doropo and Eastern Desert Exploration, with Doropo's DFS completed and mining license application submitted.

• Guidance for 2024 production and costs remains unchanged, with both companies tracking toward their respective midpoints.

Financial highlights

• Group gold production was 657koz in Q3, with Centamin producing 131,726 oz and sales of 149,659 oz.

• Free cash flow surged to $347m for the group and $103m for Centamin, with group adjusted EBITDA at $746m.

• Average realised gold price was $2,459/oz for Centamin and $2,449/oz for the group, both up 28% YoY.

• Cash costs were $766/oz for Centamin and $1,172/oz for the group; AISC was $1,256/oz for Centamin and $1,616/oz for the group.

• Centamin ended the quarter with $242 million in cash and liquids, and group liquidity was $2.58bn.

Outlook and guidance

• 2024 group gold production guidance: 2,650–2,850koz; Centamin: 470,000–500,000 oz, both tracking toward midpoints.

• Group AISC guidance: $1,500–$1,600/oz; Centamin: $1,200–1,350/oz.

• CapEx guidance maintained for both, with Centamin's Q3 capex at $67 million and group guidance at $850–$1,050m.