Centamin reports 51% jump in Q4 gold production amid Endeavour takeover attempt

Egypt-focused gold miner Centamin improved gold output from its flagship Sukari mine by 51% in the final quarter of 2019, driven by better feed grades, metallurgical recoveries and a year-end plant drawdown of gold in-circuit.

The London-listed firm produced 148,387 ounces of gold in Q4, contributing to a total of 480,529 ounces over the 12 months of 2019 – a 2% year-on-year improvement. 2020 production estimates remained unchanged at between 510,000-540,000 ounces.

“As expected, the fourth quarter production result represents one of the strongest quarterly results from Sukari and is a significant achievement for our operational team”, said Centamin chief executive Ross Jerrard.

“During 2019 there have been substantial changes in senior management and this transition in leadership is beginning to be reflected in our improved operating performance.”

Centamin’s production update comes on the back of a US$1.9 billion takeover bid from Canada’s Endeavour Mining last month, which was subsequently rejected by Centamin’s board.

In response, Endeavour has publicly encouraged Centamin to engage in discussions regarding the takeover, an approach that has been unanimously rejected by Centamin’s management.

Endeavour had until 31 December to make a firm offer for the group, however this was extended to 14 January at the request of Centamin.