The Sukari gold mine showed a significant 11% improvement in production in Q2 compared to Q2 2019 with production amounting to 130,994 ounces (oz), according to a press release.
Centamin, the operating company of the mine, stated that this surge was a result of “an increase in mill feed head grade and the deferral of planned maintenance programs from Q2 to H2, resulting in more tonnes processed and greater production volumes.” In parallel, the statement showed that there was a 16% increase in gold sales during Q2 2020 with 130.745 oz sold, compared to 112.764 oz sold in Q2 2019.
Drawing on that, the average realized price of gold recorded $1,731 per ounce, denoting a 32% year-on-year (YoY) increase, and gross revenue for Q2 2020 recorded $227 million with 54% YoY improvement. The company generated $144 million net cash flow from its operations, denoting a 151% YoY improvement. Moreover, the state has earned $6.8 million in royalty payments and the company paid $58.5 million in profit shares to the Egyptian Mineral Resources Authority (EMRA).
It should be noted that on July 1, the profit share mechanism between EMRA and Centamin changed from 55:45 to 50:50 in favor of Centamin and will remain as such for the remainder of the tenure.