Mr. Martin Horgan reports

CENTAMIN PLC ANNOUNCES QUARTERLY REPORT

Centamin PLC has provided a quarterly update.

Martin Horgan, chief executive officer, commented: "We maintain our commitment to safety and are pleased to announce zero lost-time injuries in the quarter. Operationally, the decision to complete the plant maintenance demonstrates our commitment to the long-term stewardship of Sukari and, due to our operational flexibility, 2023 production guidance is maintained.

"Today's results reflect another period of disciplined cost management, putting us on target for the lower half of our 2023 cost guidance range. Our financial strength and the savings made against our 2023 budget have also given us the flexibility to accelerate some key 2024 capital expenditures into 2023 without impacting guidance."

Highlights

Strong cost performance:

• Zero lost-time injuries: There were no lost-time injuries in Q3, resulting in a lost-time injury frequency (LTIFR) of zero. The total recordable injury frequency rate (TRIFR) was 3.83 per one million hours worked.
• Gold production of 101,370 ounces -- as published on Oct. 12, 2023 -- bringing the total gold production for the nine months of the year (YTD) from the Sukari gold mine to 321,931 ounces (oz) and is on target for the lower end of the 2023 guidance range.
• Revenue of $200.4-million (U.S.) (YTD: $626-million (U.S.)), generated from gold sales of 103,807 oz (YTD: 323,000 oz) at an average realized gold price of $1,927 (U.S.)/oz sold (YTD: $1,933 (U.S.)/oz).
• Cash costs of $882 (U.S.)/oz produced (YTD: $859 (U.S.)/oz), targeting the lower half of the 2023 guidance range
• All-in sustaining costs (AISC) of $1,266 (U.S.)/oz sold (YTD: $1,240 (U.S.)/oz) targeting the lower half of the 2023 guidance range.
• Capital expenditure (capex) of $59.1-million (U.S.) (YTD $166-million (U.S.)), reflecting capital cost savings from lower fuel costs and optimization of the open-pit fleet maintenance strategy in line with the new Sukari life-of-mine plan.
• Sukari 30 MWAC (megawatts alternating current) solar plant has been operating at nameplate levels for 12 months as of September, successfully displacing 22 million litres of diesel fuel with renewable power to reduce greenhouse gas (GHG) emissions by approximately 59,000 tonnes of CO2-e (carbon dioxide equivalent).
• Delivered the Sukari new life-of-mine plan on Oct. 12, 2023, demonstrating the potential for increased long-term gold production, lower operational costs, reduced operational risk and significantly reduced carbon emissions.
• New Egyptian mining regulatory framework agreed in principle, establishing a clear, competitive exploitation structure for the development of new mining concessions. This framework will apply to commercial discoveries made on Centamin's highly prospective 3,000-square-kilometre Eastern Desert exploration blocks (EDX).
• Strong and flexible balance sheet with available cash and liquid assets of $126-million (U.S.) (at Sept. 30, 2023) after the distribution of $23-million (U.S.) to shareholders as an interim dividend, and total liquidity of $276-million (U.S.), including the undrawn $150-million (U.S.) sustainability-linked revolving credit facility.

Outlook 2023

Annual guidance on target:

• Gold production guidance range of 450,000 oz to 480,000 oz per annum and targeting the lower end;
• Cash cost guidance range of $840 (U.S.)/oz to $990 (U.S.)/oz produced and AISC guidance range of $1,250 (U.S.)/oz to $1,400 (U.S.)/oz sold, now targeting the lower half;
• Capex guidance is maintained at $273-million (U.S.), with further detail below;
• Exploration spend is results driven -- 2023 exploration expenditure budget is $30-million (U.S.), including $23-million (U.S.) for the predevelopment study work on the Doropo gold project.

Key deliverables:

• Group mineral resource and reserve update (Q4 2023);
• Group exploration update (Q4 2023);
• Doropo gold project definitive feasibility study (mid-2024).

Webcast and conference call

The company will host a webcast and conference call today, Thursday, Oct. 19, 2023, at 8:30 a.m. BT to discuss the results, followed by an opportunity to ask questions.

Webcast:  access on-line

Dial-in telephone numbers:

• United Kingdom (and all other locations): 44-0-204-587-0498;
• United States: 1-646-664-1960.

Participation access code:  686280

Health and safety

The company remains focused on the protection of its work force and the local communities where it operates. Centamin's safety performance continues to be strong, while noting that the company's ultimate ambition is to create a zero-harm workplace. Centamin had no lost-time injuries in Q3 2023 across the group. Notwithstanding, there has been an increase in low-consequence, minor injuries. Pro-active measures have been taken to understand these injuries, identify trends and implement mitigations.

In Q3, the group LTIFR was zero and 0.10 per one million hours worked year-to-date, and the company is on target to meet the annual LTIFR target of 0.34. The group TRIFR was 3.83 per one million hours worked, bringing YTD to 3.43, which is tracking ahead of the annual TRIFR target of 2.78.

Sukari gold mine, Egypt (Q3 2023 versus Q3 2022)

Production

Sukari gold production for Q3 totalled 101,370 oz (YTD: 321,931), a 21-per-cent decrease YoY (year-over-year). As announced on Oct. 12, 2023, a potential issue was identified on SAG mill 1 following routine mill relining and the decision was taken to undertake pre-emptive repairs. However, the buildup of high-grade material on the ROM (run-of-mine) pad and increased operational flexibility in the mine plan means that 2023 annual production guidance remains on target at the lower end of guidance.

Open-pit mining

Total material moved (waste and ore) of 31.7 million tonnes (Mt), an 11-per-cent decrease YoY, driven by lower waste mined and a focus on Sukari hill, which increased ore tonnes mined.

Total open-pit waste material mined for the quarter was 27.2 Mt, a 17-per-cent decrease YoY. This includes 9.4 Mt of contracted waste stripping as part of the accelerated waste-stripping program, with a similar performance expected in Q4. The strip ratio for the quarter was 6:1 (waste: ore).

During Q3, open-pit ore was mined from multiple working areas, with contributions from Stage 5 North, East and West, and Stage 7. Total open-pit ore mined for the quarter was 4.5 Mt, a 60-per-cent increase YoY, at an average mined grade of 0.74 gram per tonne (g/t) of gold (Au), a 28-per-cent decrease YoY. This was driven by a greater conversion of waste to ore from Stage 7 of the open pit, which resulted in more-than-scheduled low-grade ore mined and less waste mined. Grades are expected to improve moderately throughout the year, averaging approximately 0.8 g/t for 2023.

During the quarter, the low-grade stockpiles increased by 363,000 tonnes (t) to 17.8 Mt at an average grade of 0.45 g/t Au.

Underground mining

Total material mined (waste and ore) was 359,000 t, a 34-per-cent increase YoY, reflecting the ramp-up in mining rates following the transition to owner mining in H1 2022. Total ore mined was 245,000 t at an average combined (stoping and development) grade of 4.61 g/t Au. This represented a 16-per-cent increase in ore tonnes YoY and a minus-26-per-cent increase in grade YoY.

The underground ore was made up of 161,000 t of ore mined from stopes at an average grade of 5.31 g/t Au and 83,000 t of ore mined from development at an average grade of 3.24 g/t Au.

Processing

The plant processed 2.8 Mt of ore, a 14-per-cent decrease YoY, at an average feed grade of 1.25 g/t Au, a 9-per-cent decrease YoY due to the pre-emptive repairs. The work was successfully completed and SAG1 has been fully operational since Oct. 1, 2023.

The metallurgical gold recovery rate was 88.5 per cent for the quarter, a 1-per-cent increase YoY.

Sukari mining concession (SMC) exploration

Brownfield exploration across the 160-square-kilometre Sukari concession amounted to $3.7-million (U.S.) in the quarter. This is capitalized and captured within the 2023 capex guidance.

Work focused on the development of additional mineral resources within the SMC that can be converted to mineral reserves and incorporated into the mine plan. In Q3, a total of 10,864 metres were drilled across a number of targets, including at V Shear East, Wadi Alam, Quartz Ridge and ARC prospects.

Capital expenditure

Key capital projects progressed well during Q3, with activities focused around underground development, tailings storage facility 2, equipment rebuilds and the contracted waste-stripping program.

The total capex in Q3 was $59.1-million (U.S.) and, after removing the impact of the waste mining accounting treatment, adjusted capex was $56.5-million (U.S.).

The 2023 capital expenditure guidance remains unchanged at $273-million (U.S.). This includes a lower deferred sustaining stripping cost of $25-million (U.S.), predominantly driven by a conversion of waste to ore, which has reduced the strip ratio and reclassified some sustaining capex to operating expenditure.

However, forecasted annual capital cost savings of $24-million (U.S.), partially offset by continuing outperformance on the contracted waste-stripping program, has meant that the company can accelerate certain key capital projects, previously scheduled for 2024, into 2023 without the need to revise guidance.

Forecasted 2023 capital savings of approximately $24-million (U.S.), primarily from:

• Lower overall open-pit mining costs resulting from fuel savings;
• Optimized open-pit fleet management strategy, as per the new Sukari life-of-mine plan.

Partially offset by:

• 2023 contracted waste-stripping outperformance is expected to result in 21 per cent more tonnes moved than scheduled but, due to lower fuel prices, only result in a 6-per-cent additional capital cost.

Accelerated capital spend into 2023:

• $12.5-million (U.S.) toward the Sukari grid power connection;
• $6.6-million (U.S.) spend toward new open-pit 785C truck purchases.

Sales and costs

Gold sales for the quarter were 103,807 oz, an 18-per-cent decrease YoY. The average realized gold price for the quarter was $1,927 (U.S.)/oz, up 12 per cent YoY. Revenues generated of $200.4-million (U.S.), 8 per cent lower YoY, driven by lower production volumes and subsequent gold sales.

Cash costs of production were $89.4-million (U.S.) for the quarter, an 14-per-cent improvement YoY, due to lower input costs such as fuel and consumables. Unit cash costs of production were $882 (U.S.)/oz produced, a 9-per-cent increase YoY, due to lower production volumes.

Total all-in sustaining costs were $131.4-million (U.S.) for the quarter, a 19-per-cent improvement YoY, reflecting lower sustaining capital expenditure. Unit AISC of $1,266 (U.S.)/oz sold, a 2-per-cent improvement YoY.

Exploration projects

The total greenfield exploration spend for the quarter was $5.5-million (U.S.) (YTD: $24.5-million (U.S.)).

Doropo project, Ivory Coast

During Q3, fieldwork continued at Doropo, including infill drilling within the main resource cluster and testing regional deposits outside the existing project resource. Total spend in the quarter amounted to $3.7-million (U.S.) (YTD: $19.6-million (U.S.)):

• 997 metres of core infill and twin hole drilling at the Vako, Sanbayoro and Attire prospects;
• 24,938 metres of reverse circulation pulp samples were analyzed using an X-ray fluorescence (XRF) machine.

The DFS (definitive feasibility study) and ESIA (environmental and social impact assessment) work continued and is expected to be completed by June, 2024.

Eastern Desert exploration, Egypt

During Q3, the focus was on advancing the company's maiden drill program on the Nugrus block, adjacent to the Sukari mining concession. The initial 10,000-metre drill program was increased to 15,000 metres with the identification of additional drill targets:

• 10,910 metres of exploration drilling was completed in Q3;
• Drilling focused on eight targets which were identified through an comprehensive fieldwork program;
• The program is scheduled for completion in October and assay results are expected to be received in Q4 2023.

Regional fieldwork continued across all three concession blocks, including soil and rock chip sampling on the Nugrus block, planning of the Najd block BLEG (bulk leach extractable gold) sampling program is under way and, at the Um Rus, Centamin prepared to undertake soil surveys during Q4.

Financial position

Free cash flow

Under the terms of the Sukari concession agreement, the Egyptian government earned $6-million (U.S.) (YTD: $18.7-million (U.S.)) in royalty payments and received $23-million (U.S.) (YTD: $69-million (U.S.)) in profit share payments during the quarter. After Sukari profit share distribution, group exploration expenditure and corporate investing activities, the free cash flow for the quarter was $12.4-million (U.S.) (YTD: $34.9-million (U.S.)).

Balance sheet

Centamin is in a strong financial position, with cash and liquid assets of $125.7-million (U.S.) as at Sept. 30, 2023. The company has a $150-million (U.S.) senior secured sustainability-linked revolving credit facility (RCF) which is available and undrawn.

About Centamin PLC

Centamin is an established gold producer, with a premium listing on the London Stock Exchange and a secondary listing on the Toronto Stock Exchange. The company's flagship asset is the Sukari gold mine, 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 five million ounces of gold, and today has six million ounces in gold mineral reserves. Through its large portfolio of exploration assets in Egypt and Ivory Coast, Centamin is advancing an active pipeline of future growth prospects, including the Doropo project in Ivory Coast, and has over 3,000 square kilometres of highly prospective exploration ground in Egypt's Nubian Shield.

Centamin recognizes 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 an over 95 per cent Egyptian work force; and, an over 60 per cent Egyptian supply chain at Sukari.

We seek Safe Harbor.